GST/HST registrants that pay or credit a rebate amount under the Foreign Convention and Tour Incentive Program

Notices to reader

The information on this page replaces the information in Guide RC4160, Rebate for Tour Packages, Foreign Conventions, and Non-Resident Exhibitor Purchases, and as a result, this guide has been eliminated.

A GST/HST rebate is no longer available to non-residents for the Canadian accommodation portion of eligible tour packages under the Foreign Convention and Tour Incentive Program (FCTIP) if the tour packages or accommodations are supplied after March 22, 2017. However, the rebate may still be available in respect of a supply of a tour package or accommodations made after March 22, 2017, and before 2018 if the amount owing for the supply is paid in full before January 1, 2018.

The rebate will still be available in respect of a supply of a tour package or accommodation made on or before March 22, 2017, regardless of when the consideration for the supply is paid or the tour takes place.

In addition, a rebate under the FCTIP is still available for certain expenses related to foreign conventions.

As of July 1, 2021, digital economy businesses, including digital platform operators, may have potential goods and services tax/harmonized sales tax (GST/HST) obligations under three new measures that were announced in the Fall Economic Statement 2020 by the Government of Canada and revised as announced on April 19, 2021 following consultations with stakeholders. This means you may have new obligations, including registering, charging, collecting and reporting the GST/HST.

For more information on these new measures and the definitions for the digital economy go to GST/HST for digital economy businesses: Overview.

On this page

Verifying that you may pay or credit a rebate amount
Calculating the GST/HST rebate amount to pay or credit
Claiming a deduction for a rebate amount on a GST/HST return
Paying or crediting a rebate amount by mistake
Filing the rebate application for a client

Verifying that you may pay or credit the rebate amount

As a GST/HST registrant, before you pay or credit a GST/HST rebate amount to a person, you should verify that the person qualifies for the rebate. You should also have supporting documents generally confirming that you may pay or credit the rebate amount. You do not have to include information used to confirm the person’s eligibility to claim a rebate with the application, but you should keep this information in case the Canada Revenue Agency (CRA) asks to see it.

For rebates paid or credited to a non-resident tour operator, you should obtain all of the following information:

For rebates paid or credited to a non-resident individual, an organization, or a business (other than a tour operator), your invoices must show that you charged GST/HST for a supply and paid or credited the rebate amount to the non-resident. You also have to keep supporting documents to confirm that one of the following applies:

For rebates paid or credited to a sponsor or non-registered organizer of a foreign convention, you should obtain documentation to confirm that the event was a foreign convention. This may include:

The following examples of written documentation may generally be used to support whether a person is eligible to claim a rebate under the FCTIP. The CRA will determine at the time of audit whether an eligible supplier could have paid or credited a rebate amount and claimed a deduction from its net tax.

Example – Written documentation generally confirming that the person to whom the sale is made is a non-resident

Example – Written documentation that generally confirms that the person to whom the sale is made is not a resident

In the case of a non-resident consumer:
Name of individual: _________________________________
Street address: ______________________________________

I certify that I am not resident in Canada for the purposes of the Excise Tax Act.
Signature of individual: _____________________________
Date (YYYY-MM-DD): ________________________________

In the case of a non-resident person, other than a consumer:

Name of person: ___________________________________
Name of authorized representative:_____________________________________
Title:_________________________________________________
Street address: _____________________________________

I certify that the above-mentioned person is not resident in Canada for the purposes of the Excise Tax Act. I have personal knowledge of such matters and I am authorized to act on the person's behalf.

Signature of authorized representative: _____________________________________
Date (YYYY-MM-DD): _______________________________

Example – Written documentation generally confirming that a sponsor or a non-registered organizer is eligible for a rebate for foreign conventions

Example – Written documentation that generally confirms that a sponsor or a non-registered organizer is eligible for a rebate on foreign convention

Name of eligible supplier: ___________________________
Address:  ______________________________________________
Name of event (if applicable): _______________________
Date of event: from  _______________ to _______________
                                     YYYY-MM-DD      YYYY-MM-DD
Information on the authorized representative of the sponsor or organizer signing this certification:
Name: _________________________________________________
Address: _______________________________________________

We certify that the above-mentioned event is a foreign convention for the purposes of the Excise Tax Act. We also agree to provide any additional information required to verify the above. If it is later proved that the event is not a foreign convention, we will pay back the rebate amount that the eligible supplier paid or credited for the convention facility and/or related convention supplies.

Signature: ____________________________________________
Date (YYYY-MM-DD): ________________________________

Example – Written documentation generally confirming that a non-resident (other than tour operator) is eligible for a rebate for tour packages

Example – Written documentation that generally confirms that a non-resident (other than tour operator) is eligible for a rebate on tour packages

Name of registrant supplier: ________________________________
Street address: _______________________________________________
Date of tour package: from _______________ to _______________
                                                 YYYY-MM-DD      YYYY-MM-DD
Name of person: _____________________________________________
Street address: _______________________________________________

If applicable:

Name of authorized representative: ________________________
Title: __________________________________________________________

We confirm that we would be entitled to claim a rebate for the eligible tour package under subsection 252.1(2) of the Excise Tax Act if we had paid the GST/HST and filed a rebate claim with the CRA. We agree to pay any GST/HST for any tour package bought and found not to be eligible for a rebate. We certify that we have met all of the following conditions:

  • We are not resident in Canada
  • We bought the eligible tour package otherwise than for resale in the ordinary course of a business
  • The accommodation included in the tour package was made available to a non-resident individual

Signature of individual or authorized representative: ________________________________
Date (YYYY-MM-DD): _________________________________________

Example – Written documentation generally confirming that a non-resident, non-registered tour operator is eligible for a rebate for tour packages

Example – Written documentation that generally confirms that a non-resident non-registered tour operator is eligible for a rebate on tour packages

Name of registrant supplier: ________________________________
Street address: _______________________________________________
Date of tour package: from _______________ to _______________
                                                  YYYY-MM-DD     YYYY-MM-DD
Name of person: _____________________________________________
Name of authorized representative: _______________________
Title: __________________________________________________________
Street address: _______________________________________________

We confirm that we would be entitled to claim a rebate for the eligible tour package under subsection 252.1(3) of the Excise Tax Act if we had paid the GST/HST and filed a rebate claim with the CRA. We agree to pay any GST/HST for any tour package bought and found not to be eligible for a rebate. We certify that we have met all of the following conditions:

  • We are not resident in Canada
  • We are not GST/HST registrants
  • We bought the eligible tour package for resale in the ordinary course of our business of selling tour packages
  • We sold the eligible tour package to a non-resident
  • Payment for the resale of the tour package was made outside Canada at a place where we (or our agent) was doing business
  • The accommodation included in the tour package was made available to a non-resident individual

Signature of authorized representative: ___________________
Date (YYYY-MM-DD): ________________________________________

Calculating the GST/HST rebate amount to pay or credit

Criteria and how to calculate
Person you are choosing to pay or credit Criteria Calculation

A non-resident individual, business, or organization (other than a tour operator) that is not registered for the GST/HST

They meet all of the eligibility conditions for claiming the rebate and one of the following applies:

 

  • The non-resident paid for the eligible tour package at a place outside Canada where you or your agent were doing business
  • The non-resident paid a deposit of at least 20% of the total price of the tour package at least 14 days before the first day any accommodation included in the eligible tour package was made available to the non-resident
    • Under this option, the deposit must be paid by credit card or charge card, cheque, bank draft, or other bill of exchange, drawn on an account outside Canada with a non-resident institution that is a bank, cooperative credit society, trust company, or similar institution. A deposit paid by debit card drawn on an account outside Canada with any of these non-resident institutions is also acceptable

 

See Calculating and claiming the rebate

A non-resident tour operator who is not registered for the GST/HST

They meet all of the eligibility conditions for claiming the rebate.

Suppliers cannot pay or credit the rebate amount for short-term or camping accommodation they provide separate from an eligible tour package.

See Calculating and claiming the rebate

A sponsor of a foreign convention or an organizer of a foreign convention who is not registered for the GST/HST

They meet all of the eligibility conditions for claiming the rebate and one of the following applies:

  • You are a registrant organizer paying or crediting the rebate amount to a sponsor of a foreign convention
  • You are a registrant operator of convention facilities that is not the organizer of the convention paying or crediting the rebate amount to a sponsor or non-registered organizer of a foreign convention
  • You are a registrant supplier of accommodation (for example, a hotel) that is not the organizer of the convention paying or crediting the rebate amount to a sponsor or non-registered organizer, and the accommodation is acquired exclusively for supply in connection with a foreign convention
See Calculating and claiming the rebate

A non-resident exhibitor of a foreign or domestic convention who is not registered for the GST/HST

 

You cannot credit or pay the rebate amount.

 

If you are a supplier who sells tour packages, and you have to identify the various elements of the package in order to determine the amount of GST/HST you must collect, see GST/HST Memorandum 27-1, Calculating the GST/HST on Tour Packages.

Claiming a deduction on a GST/HST return for a GST/HST rebate amount paid or credited

You have to file Form GST106, Information on Claims Paid or Credited for Foreign Conventions and Tour Packages, for each reporting period in which:

Include the full amount of GST/HST collected from your customers on line 103 of your GST/HST return (or on line 105 if you file your return online). Then include the amount you paid or credited on line 107 of your GST/HST return (or on line 108 if you file your return online).

File your GST/HST return and Form GST106 online

The due date to file Form GST106 is the same as the due date of your GST/HST return. For more information, see Due date for filing a GST/HST return. The consequences of not filing this form by the due date depend on when you file it. For more information, see GST/HST – Penalties and interest.

Example – How to report on your GST/HST return an amount that you paid or credited as a rebate of tax paid for an eligible tour package

Example – How to report the amount paid or credited on account of a rebate of tax paid for an eligible tour package on your GST/HST return

On January 16, 2015, you sold 15 tour packages to a non-resident, non-registered tour operator for an all-inclusive price of $1,000 for each tour package. Each package includes the following items, taxable at 5% GST:

  • hotel accommodation (five nights in Alberta)
  • train transportation (two nights are spent on the train)

The tour operator meets all of the eligibility conditions for the rebate and confirms that it has resold the eligible tour packages to non-residents. You choose to credit a rebate amount to the tour operator.

Calculations
Details Amounts
Selling price ($1,000 × 15 persons) $15,000.00
GST ($15,000 × 5%) $750.00
Subtotal $15,750.00
Minus credit for rebate amount (5/7 × 50% × $750) ($267.86)
Amount the tour operator pays you $15,482.14

Note

Only the five nights in the hotel are eligible short-term accommodation. The two nights on the train do not qualify as short-term accommodation.

Amounts to be included on your GST/HST return
Details Amounts
Line 103 (or line 105 if you file your return online) $750.00
Line 107 (or line 108 if you file your return online) $267.86

You also have to file Form GST106 by the due date of the GST/HST return on which you claim the deduction on line 107 (or line 108 if you file your return online).

Example – How to report on your GST/HST return an amount that you paid or credited to a non-resident consumer as a rebate of tax paid for an eligible tour package

Example – How to report the amount paid or credited to a non-resident consumer on account of a rebate of tax paid for an eligible tour package on your GST/HST return

On May 25, 2015, you sold an eligible tour package to a non-resident consumer for an all-inclusive price of $2,000. All elements of the tour package are subject to the HST at 13%.

The package included:

  • four nights on a cruise ship
  • accommodation for six nights at a resort

The non-resident consumer paid you a deposit of 25% of the price of the tour package one month before the first night of accommodation was made available to the non-resident. You choose to credit the rebate amount to the non-resident.

Calculations
Details Amounts
Selling price $2,000
HST ($2,000 × 13%) $260
Subtotal $2,260
Less deposit ($500)
Minus credit for rebate amount (6/10 × (50% × $260)) ($78)
Amount owing $1,682
Total amount the non-resident pays you $2,182

Note

Only the six nights in the resort are short-term accommodation. The four nights on the cruise ship do not qualify as short-term accommodation.

Amounts to be included on your GST/HST return
Details Amounts
Line 103 (or line 105 if you file your return online) $260
Line 107 (or line 108 if you file your return online) $78

You also have to file Form GST106 by the due date of the GST/HST return on which you claim the deduction on line 107 (or line 108 if you file your return online).

Example – How to report on your GST/HST return an amount that you paid or credited as a rebate payable to the sponsor of a foreign convention

Example – How to report an amount paid or credited on account of a rebate payable to the sponsor of a foreign convention on your GST/HST return

You are the organizer of a foreign convention held in Ontario and you are a GST/HST registrant. You invoice the non-resident sponsor of the convention for the following services:

  • meals and catering
  • meeting rooms and convention material
  • exhibit decorations
Calculations
Item Charge HST 13% FCTIP rebate
Meals and catering $10,000 $1,300 $650
Meeting rooms $5,000 $650 $650
Convention materials $10,000 $1,300 $1,300
Exhibit decorations $5,000 $650 $650
Total $30,000 $3,900 $3,250

Note

A rebate is only available for 50% of the GST/HST paid for food, beverages, or items supplied under a catering contract.

Calculations
Details Amounts
Invoice total $30,000
Total HST $3,900
Subtotal $33,900
Minus credit for rebate amount ($3,250)
Net amount sponsor pays $30,650
Amounts to be included on your GST/HST return
Details Amounts
Line 103 (or line 105 if you file your return online) $3,900
Line 107 (or line 108 if you file your return online) $3,250

You also have to file Form GST106 by the due date of the GST/HST return on which you claim the deduction on line 107 (or line 108 if you file your return online).

Paying or crediting an amount by mistake

If the CRA determines that the non-resident was not eligible for a rebate, or that the amount paid or credited was more than what the non-resident was eligible for, and you knew or ought to have known this, you and the non-resident are jointly liable to pay the CRA any amount owing. Otherwise, only the non-resident is liable to pay the CRA any amount owing.

Filing the rebate application for a client

If you enter into an agreement with a client to fill out and file their rebate application, see How GST/HST is charged and reported when a GST/HST registrant acts on behalf of a recipient.

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