Travel Service Providers/Tour Operators

This section explains how to apply for a refund of the GST/HST paid on eligible short-term accommodation that you resell to non-resident visitors to Canada.

• Who can apply?
• How do you apply?
• What can you claim?
  • Resale of accommodation
  • Resale of tour package
• Additional information required
• Information on your refund
• Tax credited or paid by Canadian suppliers

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Who can apply?

As a non-resident travel service provider/tour operator (e.g. travel agent, cruise operator, hotel and air carrier), who is not registered for GST/HST purposes, you can apply for a refund of the GST/HST paid on eligible short-term accommodation, made available to non-resident individuals, if all of the following applies:

• You are a non-resident of Canada at the time you submit your refund application.
• You purchase eligible short-term accommodation in Canada for resale in the ordinary course of your business.
• You resell the eligible short-term accommodation to another non-resident person (such as a consumer, business, school, or association) for use by non-resident individuals.
• Payment for the eligible short-term accommodation or tour package containing the eligible short-term accommodation must be received outside Canada at your place of business or the place of business of your agent.
• The total amount of your eligible short-term accommodation purchases (before taxes are added) must be at least $200 CAN.
• Each eligible short-term accommodation unit was provided for less than one month of continuous occupancy.
• The eligible short-term accommodation is made available to a non-resident individual.
• We receive your refund application within one year from the last date the GST/HST was paid on your eligible short-term accommodation. Generally, the day the tax became payable is the day you paid the amount due or the date of the invoice whichever comes first.

In some cases, you may have been provided a refund directly from the Canadian supplier who sells you the eligible short-term accommodation. Refer to Tax credited or paid by Canadian suppliers for more information.

There is no refund for the GST/HST you paid on transportation services. However, it is possible to purchase Canadian transportation services without paying the GST/HST if you resell the services as part of a zero-rated continuous international journey.

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How do you apply?

Complete a Refund Application for Non-resident Travel Organizers (Form GST177) and mail it to the address below.

Visitor Rebate Program
Summerside Tax Centre
Canada Revenue Agency
Suite 104, 275 Pope Road
Summerside PE C1N 6C6
Canada

Your application will be processed then a notice of assessment and/or a cheque, if applicable, will be issued to you in four to six weeks.

To avoid delays in the processing of your refund, be sure to do the following:

• Sign your application.
• Attach the original invoices from the Canadian supplier, which clearly indicates the number of nights the eligible short-term accommodation was supplied and the amount of tax paid. We do not accept credit or debit card receipts and we do not return your documents.

In some cases, you may have been provided a refund directly from the Canadian supplier who sells you the eligible short-term accommodation. Refer to Tax credited or paid by Canadian suppliers for more information.

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What can you claim?

Resale of accommodation

You can claim a refund of the tax paid on eligible short-term accommodation you resell separately (that is, the accommodation is not part of a tour package). Just claim the actual amount of tax paid for each night, for each non-resident individual. Your receipts must clearly show the transaction dates and the actual amount of tax paid for the accommodation.

Room service and telephone charges are not eligible for a GST/HST refund. If breakfast is included in the fixed price of your eligible short-term accommodation, apply for a refund of the tax you paid on the total fixed price.

Resale of tour package

If you resell a tour package that includes eligible short-term accommodation to non-resident individuals, you can apply for a refund of the GST/HST you paid when you purchased the tour package.

The refund is equal to 50% of the actual tax paid on the tour package. However, if the tour package does not include eligible short-term accommodation in Canada for every night as part of the package, you have to adjust the refund.

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Additional information required

In addition to the information you provided with your Refund Application for Non-resident Travel Organizers (Form GST177), we may ask you to provide some additional information. You do not have to include these documents with your Refund Application for Non-resident Travel Organizers (Form GST177), but you should keep them with your books and records in case we ask to see them.

Additional information includes:

• A list of the individuals, including first and last names, with addresses to whom you provided the eligible short-term accommodation or tour package;
• The names and addresses of the travel agents through whom you made the sales if the individual names and addresses are not available; or
• For a purchase by a group, the name and address of the leader of the group to whom you sent the confirmation or invoice.

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Information on your refund

• How long does it take to get your refund?
  
  
• What is a Notice of Assessment?
  
  
• In what currency will your refund be issued?
  
  
• Where can you get your cheque cashed?
  
  
• How long is your cheque valid for?
  
  
• What happens if you cannot cash your cheque?
  
  
• Can you receive your refund in a format other than a cheque?
  
  
• Where is your refund?

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Tax credited or paid by Canadian suppliers

Canadian suppliers who are registered for the GST/HST have the option to directly pay or credit you with an amount equal to the GST/HST refund that you can claim. Canadian suppliers who can pay or credit you with this refund include travel service providers such as hotel, motel, resort owners, travel agents, wholesalers, and tour operators who sell tour packages containing eligible short-term accommodation in Canada.

If eligible short-term accommodation is sold to you separately (it is not part of a tour package), the supplier of the eligible short-term accommodation can pay or credit you the actual tax paid on the value of the accommodation shown on the invoice.

If eligible short-term accommodation is sold to you as part of a tour package, the supplier can pay or credit you an amount equal to the amount of the refund you could have claimed. This refund is equal to 50% of the tax paid, and may need to be adjusted depending on the tour. Refer to Resale of tour package for more information.

If the Canadian supplier does not pay or credit you with the tax refund, you can apply for a GST/HST refund of $525 CAN using Refund Application for Non-resident Travel Organizers (Form GST177).

In the above example, if the eligible short-term accommodation was provided in Nova Scotia, New Brunswick, or Newfoundland and Labrador, you would use 15% HST for the calculations, instead of the 7% GST.

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Forms and Publications

• Tax Refund for Non-Resident Travel Organizers and Foreign Conventions (Pamphlet RC4160)
• Refund Application for Non-resident Travel Organizers (Form GST177)