Foreign Convention and Tour Incentive Program

GST/HST Rebate for Foreign Conventions in Canada

Digital economy businesses, including digital platform operators, may have potential GST/HST obligations under three new measures. These include new obligations to register, charge, collect, and report the GST/HST. If you are involved in organizing or participating in foreign conventions, it's essential to understand the Foreign Convention and Tour Incentive Program (FCTIP) and how it applies to your GST/HST obligations and rebate eligibility.

Overview of the Foreign Convention and Tour Incentive Program (FCTIP)

The FCTIP is a rebate program administered by the CRA, providing GST/HST rebates to convention sponsors, organizers, and exhibitors for the GST/HST paid on certain properties and services used during conventions held in Canada. In some cases, a rebate may also be available for Quebec Sales Tax (QST) paid on purchases for a foreign convention, where invoices in Quebec will show the French term TVQ for QST.

Rebate Eligibility

You may be eligible for a rebate under the FCTIP if you are:

A sponsor of a foreign convention

An organizer of a foreign convention and you are not registered for the GST/HST

A non-resident exhibitor at any convention and you are not registered for the GST/HST

What to Do if Someone is Filing Your Rebate Application for You

If you authorize a third party to file the rebate application on your behalf, there are several key steps and requirements to follow:

Agreement between you and the third party

Information required on a power of attorney

How GST/HST is charged and reported when a GST/HST registrant acts on behalf of a recipient

Payment methods if a third party files your rebate application

How GST/HST is Charged and Reported When a GST/HST Registrant Acts on Behalf of a Recipient

As a GST/HST registrant, if you agree to act on behalf of a recipient, you must charge the full amount of GST/HST payable, and this amount must be reported on your GST/HST return. If you are not the supplier and are only an independent third party, you may need to charge GST/HST on the third-party services you are providing to the rebate claimant. If you advance an amount equal to the estimated rebate amount from your own funds, this amount cannot be deducted when you fill out your return.

Payment Methods if a Third Party Files Your Rebate Application on Your Behalf

If you authorize a third party to file your rebate application, both you and the third party must decide how the rebate amount will be paid. Various private arrangements can be used, such as mail-in payment or instant payment methods.

Conclusion

If you are a GST/HST registrant, you can choose to pay or credit the rebate amount under the FCTIP if the following applies to you:

You are an organizer of a foreign convention and supply convention facilities or related convention supplies to the sponsor of the convention

You are an operator of a convention facility, not an organizer, but supply convention facilities or related supplies to a sponsor or an organizer of the convention

You are not an organizer but supply short-term or camping accommodations to a sponsor or organizer of a foreign convention

Note that Canadian suppliers cannot pay or credit the GST/HST and/or QST to non-resident exhibitors.

For more information, visit the official page: Canada Revenue Agency - Foreign Convention and Tour Tax Rebate