HST INFORMATION FOR NON RESIDENT GUEST TO ONTARIO
July 10, 2010 marked a significant date. The GST rebate that your guest would have received in the past became the HST rebate under the ‘FOREIGN CONVENTION AND TOUR INCENTIVE PROGRAM.’
Guests now receive half of the 13% Harmonized Sales Tax (HST) or 6.5%. To be eligible you must have purchased a tour package. What constitute a tour package?
- A package that is sold for an all inclusive price.
- Must include overnight short term and/or camping accommodation in Canada.
- And must include at least one service.
Eligible accommodations include; cabins, campgrounds (but not train or boat).
Eligible services can include transportation (not boat rentals), guide services, skinning animals or plucking birds, fish processing, game caping, cutting, wrapping, packaging as well as sightseeing excursions.
Your invoice must make it clear that your package included eligible accommodations and at least one eligible service sold for a single package price.
Other non-eligible services can be included on your invoice but without at least one eligible service a package will not qualify.
For forms and further definitions and information:
Examples of packages that qualify
- Trip includes five days accommodations in outpost cabin, boat and motor, gas, bait, and float plane transportation.
Note: In example 1, the inclusion of accommodation in outpost cabin, and float plane transportation makes this package eligible.
2. Package includes 6 days accommodation in cabin at our island, breakfast and dinner, boating transportation from landing to our lodge, boat and motor, bait and use of canoes and kayaks.
Note: again in example 2, we see that the inclusion of cabin accommodation and boat transportation to the lodge make this package eligible.
3. Package includes 5 days accommodation in housekeeping cabin, boat and motors, gas, bait, fishing guide, and fish processing.
Note: In example 3, the inclusion of the accommodation in housekeeping cabin, fishing guides and fish processing makes this package eligible.
Example of packages that will not qualify
- A package consists of camping accommodation in Canada, meals, and admission to a heritage site sold for an all-inclusive price.
This package is not an eligible tour package for this rebate. Although the package includes camping accommodation in Canada, it does not include a service (meals and admission are both property).
2. A hotel in Canada provides short-term accommodation and a shuttle to and from a nearby casino. The shuttle is included in the room price.
This is not an eligible tour package for the rebate because the shuttle is an amenity that is part of the accommodation. Therefore, this is accommodation only, not a tour package.
3.A stay at an all-inclusive resort in Canada is sold. Accommodation at the resort, meals at the resort, access to the resort swimming pool, access to the resort tennis court, and a spa service at the resort spa are part of the price.
This package is not an eligible tour package for this rebate because, in the case of an all-inclusive resort, items such as the meals, complimentary access to the resort swimming pool and tennis court, and a complimentary spa service at the resort spa are amenities that are part of the accommodation. Therefore, this is a supply of accommodation only, not a tour package.