Notice to reader
As ofJuly 1, 2021, digital economy businesses, including digital platform operators, may have potential 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 onApril 19, 2021following 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 toGST/HST for digital economy businesses: Overview.
On this page
- Overview
- Rebate eligibility
- What to do if someone is filing your rebate application for you
- Paying or crediting a GST/HST rebate to a client
- Contacting the CRA
Overview
The Foreign Convention and Tour Incentive Program (FCTIP) is a rebate programadministered by the CRA. The program provides GST/HSTrebates to convention sponsors, organizers and exhibitors, for the GST/HST paid on certain properties and/or services used during conventions held in Canada
In certain cases, a rebate may also be available for Quebec sales tax (QST) paid on purchases for a foreign convention. Invoices in Quebec often show the French term for the QST, TVQ.
If you are a non-resident visitor to Canada, you cannot claim a rebate of the GST/HST that you paid for purchases made in Canada.
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 notregistered for the GST/HST
Learn more:GST/HST and QST rebate for sponsors of foreign conventions, organizers of foreign conventions and non-resident exhibitors.
What to do if someone is filing your rebate application for you
- Agreement between you and a third party
- Information requiredon 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 for you
Agreement between you and a third party
You may enter into an agreement with someone else to have them fill out and file your rebate application on your behalf. This would be a private arrangement between you and the other person.In this situation, you would have to pay the full amount of GST/HST due to the supplier and wait to receive the FCTIP rebate from the CRA.
Depending on your agreement, the person whofiles your rebate applicationon your behalf may give you an amount equal to the estimated amount of the rebate out of their own funds, so that you do not have to wait for your rebate to be mailed to you from the CRA. This arrangement is not the same as a supplier paying or crediting you with the rebate amount.Unlike a supplier, the personmight charge you a fee for filing the application on your behalf.
If you enter into an agreement with someone else to have them file your rebate application, all of the required documents for claiming the rebate have to be included with the application. Proof that you have authorized the person to file the rebate application on your behalf, such as a power of attorney, must also be included with the application.
Information required on a power of attorney
The CRA will accept and act on a power of attorney only if it contains all of the following:
- A statement that the authorized person is not affiliated with the Government of Canada or the CRA
- Complete and upfront disclosure of any fees the authorized person charges you to fill out and file your rebate application on your behalf
- A statement that you authorize the other person to act on your behalf
- A statement that the power of attorney is for a rebate of the GST/HST and/or the QST under the FCTIP
- Your name, address, telephone number, email address (if applicable) andsignature
- The name, address, telephone and fax numbers and email address (if applicable) of the person you are authorizing
Regardless of how you structure your business arrangement with an authorized person, the CRA will mail the cheque payable to you to the address on Form GST386, Rebate Application for Conventions. The address may be either your address outside Canada or the authorized person’s address in Canada.
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 (as an authorized person), you must still 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.
Advancingfunds to a recipient for the amount of the rebate is considered a private arrangement between you and therecipient. This is not the same as paying or crediting the rebate amount to the recipient.
Whether or not there is a power of attorney in place, the invoice to therecipient must show the amount ofGST/HST payable.
Payment methodsif a third party files your rebate application on your behalf
When you authorize another person (a third party) to act asyour attorney to fill out and file your rebate application on your behalf, you and the thirdparty must decide how the rebate amount will be paid to you. You and the third party may choose to use various private arrangements to pay the rebate to you such as the mail-in payment method or the instant payment method.
Mail-in payment
When using the mail-in payment method, the authorized person fills out and sends the rebate application to the CRA. They also have to send the supporting documents and a signed power of attorney. Depending on the arrangement with you, the authorized person may charge a fee for their service. The CRA will then pay you the eligible amount for the rebate.
Instant payment method
Generally, when using the instant payment method, the authorized person fills out and sends the rebate application to the CRA. They also have to send the supporting documents and a signed power of attorney. This person advances an amount equal to the estimated GST/HST rebate to you from the person’s own funds. Depending on the arrangement with you, the authorized person may deduct a fee for their service. The CRA will then pay you the eligible amount for the rebate. How the person gets its advance back from the tour operator is a private arrangement between the tour operator and that person.
Paying or crediting a GST/HST rebate to a client
If you are a GST/HST registrant, youcan choose to pay or credit the rebate amount payable under the FCTIP if one of the following applies to you:
- You are an organizer of a foreign convention and you supply convention facilities and/or related convention supplies to thesponsor of the convention
- You are an operator of a convention facility who is not an organizer of the foreign convention and you supply convention facilities and/or related convention supplies to either of the following:
- A sponsor of a foreign convention
- Anorganizer of a foreign convention that is not registered for the GST/HST
- You are not an organizer of the foreign convention and you supply short-term accommodation or camping accommodation to either of the following:
- A sponsor of a foreign convention
- An organizer of a foreign convention that is not registered for the GST/HST
Canadian suppliers cannot pay or credit the GST/HST and/or the QST to non-resident exhibitors.
Learn more:GST/HST registrants that pay or credita rebate amount under the Foreign Convention and Tour Incentive Program.
Contacting the CRA
If you are a non-resident and want more information on how the GST/HST applies to tourism, see Non-resident GST/HST Enquiries to determine the tax services office you should contact.
If you have questions about the FCTIP or want to know the status of your rebate, call:
- 1-800-959-5525 from Canada and the United States
- 613-940-8497 from outside Canada and the United States
The CRA only accepts collect calls initiated by telephone operators. After your call is accepted by an automated response, you may hear a beep and experience a normal connection delay.
You can also write to:
Canada Revenue Agency
Prince Edward Island tax centre
275 Pope Road
Summerside PE C1N 6A2
CANADA
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