Member Services Manager
any of you have asked what will happen to the GST rebate that many of your guests receive under the Foreign Convention and Tour Incentive Program when the harmonized sales tax takes effect. We have received confirmation from both provincial and federal officials that the rebate your guests receive will be half of the 13% harmonized tax or 6.5%. There had been some initial concern that the rebate would apply to the federal portion of the tax only but we have confirmed this is not the case.
We are also continuing to urge provincial officials to lobby the federal government for a return to the old, more flexible visitor rebate program. We don’t know how this effort is going at the moment, but we will keep pushing on your behalf.
All of the same rules will apply for the new rebate amount. Your packages must include overnight accommodations as well as one or more services. Eligible accommodations include cabins, campgrounds but NOT accommodations on a train, trailer or boat. According to the Canada Revenue Agency, services can include transportation (not boat rentals), guide services, skinning animals or plucking birds, fish processing, game caping, cutting, wrapping, and packaging as well as sightseeing excursions.
Your invoice must make it clear that your package includes eligible accommodations and at least one eligible service sold as an inclusive package. Other non-eligible services can be included on your invoice but without at least one eligible service a package will not qualify.
Here are some examples of invoice descriptions;
Example 1: Trip includes 5 days accommodation in outpost cabin, boat and motor, gas, bait and float plane transportation.
NOTE: In Example 1, the inclusion of accommodation in an outpost cabin, and float plane transportation make this package eligible.
Example 2: Package includes 6 days accommodation in cabin at our island, breakfast and dinner in our dining room, boat transportation from the landing to our lodge, boat and motor, bait and use of canoes and kayaks.
NOTE: In Example 2, the inclusion of the accommodation in cabin, and boat transportation from the landing to the lodge make this package eligible.
Example 3: Package includes 5 days accommodation in housekeeping cabin, boat and motor, gas, bait, fishing guide, and fish processing.
NOTE: In Example 3, the inclusion of the accommodation in a housekeeping cabin, fishing guide, and fish processing make this package eligible.
The rebate application form will be the same one that has been used under the GST rebate program and can be found at http://www.cra-arc.gc.ca/E/pbg/gf/gst115/
For information on applying the rebate directly on your guests’ invoices, please refer to the article entitled “Applying the GST Rebate at Source” published in the Spring 2008 issue of The Outfitter. You can also find an online version of this article at http://www.noto.ca/theoutfitterarchives/applying_gst_rebate_at_source. Although the article refers to GST rebate, the same rules will apply once we move to the new HST.
This article was taken from page 7 of NOTO's "The Outfitter" publication, Spring 2010 Issue