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AdmissionsRST Guide 303, January 1997
Taxable AdmissionsAdmissionsAdmission charges to view indoor or outdoor performances and entertainment are taxable at the Ontario retail sales tax (RST) rate of 10% where the price is more than $4.00 [excluding the federal goods and services tax (GST)]. The federal government allows vendors the option of using GST-included pricing when billing customers. RST is to be collected at the time the tickets are purchased whether the tickets are sold by series, or season subscription, or on the day of the event. A cover charge is considered to be a price of admission. The tax collected or collectable must be paid by the due date of the next RST return. The following are examples of indoor or outdoor performances and entertainment that are considered to be places of amusement for RST purposes:
Calculating Retail Sales Tax for GST-Included PricingA vendor who chooses the federal option of GST-included pricing for admissions, and whose sales are also taxable provincially, may use a factor to calculate the amount of RST to collect from customers, if every admission is over $4.28 ($4.00 + 7% GST). For example, to calculate the 10% RST on taxable admissions, a vendor would multiply the GST-included price by 9.346%: GST-included price ($10.00 + 7% GST) = $10.70 Note: For the balance of this guide, references to $4.00 will exclude GST. RST-Included PricingVendors in the hospitality industry can use tax-included pricing for RST if:
Please refer to Retail Sales Tax Guide 208, "Tax-included Pricing" for more information. Combination PackagesA price of admission may include a combination of both taxable and non-taxable attractions, or other privileges, or a meal. The total selling price of the combination package is taxable at the rate of 10% except as outlined below. RST can be charged only on the taxable portion of the price of the combination package if:
If the above conditions are met, the charge for any taxable meals would be taxed at the rate of 8% and the charge for taxable prices of admission would be taxed at the rate of 10%. Some places of amusement offer special admission rates for families. To determine if a family or combination package qualifies for some tax relief, details should be sent to the local Retail Sales Tax Office for a ruling. Promotional Distribution by VendorMany amusement operators provide admissions in exchange for goods or services. This arrangement is considered a sale, not promotional distribution. The amusement operators must collect RST on the selling price. Generally, the selling price of an admission in this arrangement is the advertised price charged to regular patrons. If you believe that the taxable amount is less than the advertised price, contact your local Retail Sales Tax Office and provide all the details. Surcharges on Prices of AdmissionSome municipalities require that a surcharge be added to ticket prices to places of amusement owned by the municipality, such as municipally-owned stadiums, or theatres. The surcharge is added whether the ticket is bought at the organization's box office or from an agent selling the ticket. The surcharge is part of the admission charge to a place of amusement and RST applies if the total price of admission is more than $4.00. This municipal surcharge is not the same as service charges added by retail agents, such as TicketMaster and American Express, on tickets bought from an agency office, or with a credit card. These service charges are not taxable, since they are not a "charge made to a purchaser for entry into a place of amusement". Non-Taxable AdmissionsThe following are not subject to RST:
Also exempt are admissions to events held or sponsored by the following organizations:
Qualifying organizations are not required to apply for exemptions for particular events, however, they must be prepared to prove that they are entitled to exemptions by keeping all the necessary documents on file. Non-taxable ChargesNon-taxable charges include:
Vendors' ResponsiblitiesA vendor must:
For Further InformationThe information contained in this publication is only a guideline. For further information, please contact the nearest Ontario Ministry of Finance Tax Office listed in the blue pages of your telephone directory, call our TAX FAX service at 1 877 4 TAX-FAX (1 877 482-9329), or visit our website at www.trd.fin.gov.on.ca. Ce document est disponible en français ISSN 1192-3210 To view Adobe Acrobat PDF files, you need to have Acrobat Reader installed on your computer. You can download this free software from the Adobe website. | |
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