GST/HST registrants that pay or credit a rebate amount under the Foreign Convention and Tour Incentive Program
Notices to reader
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 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:
- a convention agenda, itinerary, or event program
- complete hotel folios (that is, the entire hotel bill)
- copies of invoices or receipts showing the GST/HST and/or QST paid
- other documents confirming that the event was a foreign convention
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): ________________________________
Calculating the GST/HST rebate amount to pay or credit
Person you are choosing to pay or credit | Criteria | Calculation |
---|---|---|
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:
|
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. |
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:
- you are a GST/HST registrant
- you paid or credited a rebate amount for a foreign convention or a tour package
- you claimed a deduction on your GST/HST return for the amount of GST/HST paid or credited
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).
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 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
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.
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 |
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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