What qualifies as a foreign convention?

A convention is a formal meeting or assembly that is not open to the general public. It does not include events whose main purpose is to provide entertainment or recreation, conduct contests, or conduct business at a trade show open to the general public.

A convention held in Canada is classified as a foreign convention when both of the following conditions are met:

1

At the time the sponsor determines the admission price, it is reasonably expected that at least 75% of admissions will be provided to non-residents of Canada. This expectation can be based on the percentage of non-residents who attended previous conventions, who are usually invited, or who are listed as members of the organization — or any other reasonable method.
2

The sponsor's head office is situated outside Canada — or, if the organization has no head office, the majority of members having management and control of the organization are non-residents.

Important — 75% Rule

If a convention qualifies as a foreign convention because it is reasonably expected that at least 75% of admissions will go to non-residents, and it is later discovered that less than 75% were actually supplied to non-residents, the convention is still treated as a foreign convention. The initial reasonable expectation is what governs.

Key roles — definitions

The GST/HST rules for foreign conventions depend on the role each party plays. These roles carry distinct obligations and entitlements.

Sponsor

The person who convenes the convention and supplies admissions to it — typically the association itself. Often referred to as the host. Note: a financial sponsor or commercial supporter of the event is not a sponsor for GST/HST purposes.

Organizer

The person that acquires the convention facility or related convention supplies and organizes the convention on behalf of the sponsor — often a professional congress organizer (PCO) or destination management company.

Exhibitor

A person that rents exhibition space exclusively as a site to promote, at the convention, the property or services of their business. The space must be used exclusively for promotional purposes — not for selling goods to attendees.

Convention Facility

Any real property acquired by way of lease, licence, or similar arrangement by the sponsor or organizer, for use exclusively (90% or more) as the site for the convention. Includes meeting rooms and exhibition halls.

GST/HST registration requirements

Registration obligations differ depending on the party's role.

Already registered for GST/HST?

If you are a sponsor of a foreign convention and are already registered for other Canadian activities, your foreign convention activities are not part of your commercial activities. This means you do not charge GST/HST on admissions, related convention supplies, or exhibition space — and you cannot claim input tax credits (ITCs) on related purchases. You may, however, apply for a rebate (see below).

!

Sponsors selling other items at the event If you sell books, posters, educational materials, or other items at the foreign convention, you may need to register for and charge GST/HST on those sales. Consult a Canadian GST/HST advisor to confirm your obligations.

i

Organizers An organizer of a foreign convention may be able to, or may have to, register for the GST/HST depending on the volume of their taxable supplies in Canada. A registered organizer charges GST/HST on their supplies but can pay or credit the rebate amount directly to the sponsor.

How GST/HST applies to foreign conventions

The tax treatment of each supply type at a foreign convention depends on who is making the supply. The table below summarizes the key rules.

GST/HST Treatment Summary

Foreign Convention — Supply by Supply

GST rate: 5% in non-participating provinces · HST: 13%–15% in participating provinces (ON, NS, NB, NL, PEI)

Convention Facility (venue rental)

Leased by operator to the sponsor or organizer The venue operator (if a GST/HST registrant) must charge the full GST/HST on the lease of convention space, regardless of whether the lessee is a resident or non-resident. The sponsor or organizer may be entitled to a rebate.

GST/HST Applies

Admissions

Sold by the sponsor to all attendees The sponsor does not charge GST/HST on admissions to a foreign convention — even if the sponsor is registered for the GST/HST. This applies to all attendees regardless of residency.

No GST/HST

Related Convention Supplies

Supplied by a registrant organizer or vendor to the sponsor GST/HST is charged at the applicable rate. The sponsor may apply for a rebate — or the registrant organizer can pay or credit the rebate amount directly.

GST/HST Applies

Supplied by the sponsor to exhibitors The sponsor does not charge GST/HST on related convention supplies provided to exhibitors at a foreign convention.

No GST/HST

Exhibition Space

Leased by a registrant (other than the sponsor) to exhibitors GST/HST is charged. Non-resident exhibitors may apply for a rebate using Form GST386.

GST/HST Applies

Leased by the sponsor to exhibitors (for promotional use only) The sponsor does not charge GST/HST on exhibition space leased to exhibitors who will use it exclusively to promote their business, services, or property.

No GST/HST

What are related convention supplies?

Related convention supplies are property or services acquired exclusively (90% or more) for use in connection with a convention. They do not include property or services provided to attendees for a separate charge from the admission fee — such as souvenirs or books sold at the event.

Included — Related Convention Supplies

Hotel accommodation for the sponsor, organizer, or exhibitor — or supplied to attendees as part of the admission
Audio, audio-visual, and video services including equipment and labour
Computers, photocopiers, desks, and chairs
Banners, flags, signs, papers, decorations, and office supplies
Equipment and labour for installing carpeting, tables, exhibit booths, draping, and displays
Destination management and local co-ordination services
Food, beverages, and catering services (50% rebate limit — see below)
Promotional items: lapel buttons, key chains, pens, T-shirts, badges, mugs
Moving, storage, and delivery of exhibit materials
Registration desk staffing, photography, and security
Identification badges, programs, on-site newsletters, and convention booklets
Customs brokerage, legal, accounting, and freight forwarding
Simultaneous interpretation equipment and labour
Speaker fees and course materials
Telephone, fax, video, and computer link-ups
Translators and interpreters
Chartered group transportation between convention facilities, attendee lodging, and transport terminals (e.g., airport shuttles)

Not Related Convention Supplies

General transportation services (other than chartered shuttle services described above)
Entertainment such as city tours or social excursions
Goods, intangible personal property, or services provided to attendees for a separate charge from the admission fee — such as souvenirs, books, and videos sold at the convention
Food, beverages, and catering services when supplied to exhibitors (these are not related convention supplies in that context)

GST/HST rebate for foreign conventions (FCTIP)

Under the Foreign Convention and Tour Incentive Program (FCTIP), sponsors and non-registered organizers of foreign conventions may claim a rebate for the GST/HST paid on convention-related purchases. This is one of the most significant tax benefits available to non-resident associations holding events in Canada.

Who can claim: The sponsor of a foreign convention, and the organizer of a foreign convention who is not registered for the GST/HST, can apply for the FCTIP rebate. A registered organizer cannot claim the rebate directly but may be able to pay or credit a rebate amount to the sponsor.

Eligible expenses for the rebate

Convention facilities & related supplies

100% of the GST/HST paid for convention facilities and related convention supplies that are not food, beverages, or items provided under a catering contract.

Food, beverages & catering

50% of the GST/HST paid for food, beverages, or items purchased under a contract for catering in connection with the convention.

How to claim the rebate

There are two ways to obtain the rebate:

A

File Form GST386 — Rebate Application for Conventions. The sponsor or non-registered organizer sends a completed form to the Canada Revenue Agency. The application must be filed within one year of the last day of the convention. All supporting documents, payment proofs, invoices, company documents and other relevant documents must be inlcuded as well.
B

Supplier pays or credits the rebate directly — Certain registered suppliers can reduce the amount owing by crediting the rebate on their invoice, eliminating the need for the sponsor to file a separate claim with the CRA. See below for which suppliers can do this.

Which suppliers can credit the rebate?

Not every supplier can pay or credit a rebate amount. Only the following can do so:

1

A registered organizer can pay or credit a rebate amount to the sponsor.
2

A registered operator of convention facilities (that is not the organizer) can pay or credit a rebate amount to the sponsor or a non-registered organizer.
3

A registered hotel or accommodation supplier (that is not the organizer) can pay or credit a rebate amount to the sponsor or non-registered organizer, if the accommodation is acquired exclusively for supply in connection with the foreign convention.

How the credit works

The supplier must still charge the full GST/HST on the invoice and show the full tax payable. The invoice must also show the rebate amount being credited. The supplier then deducts the credited rebate amount on their own GST/HST return (line 107) and files Form GST106 (Information on Claims Paid or Credited for Foreign Conventions and Tour Packages) by the same due date.

Illustrative Example — Organizer Credits Rebate to Sponsor

A registered organizer invoices the non-resident sponsor of a foreign convention held in Toronto, Ontario (HST at 13%) for the following services:

Meals and catering	$10,000	HST: $1,300	Rebate: $650 (50%)
Meeting rooms	$5,000	HST: $650	Rebate: $650 (100%)
Convention materials	$10,000	HST: $1,300	Rebate: $1,300 (100%)
Exhibit decorations	$5,000	HST: $650	Rebate: $650 (100%)
Total	$30,000	HST: $3,900	Rebate: $3,250

Net amount the sponsor pays: $30,000 + $3,900 − $3,250 rebate credit = $30,650

The organizer reports the full $3,900 HST on their GST/HST return and deducts the $3,250 credited rebate amount. Form GST106 must also be filed.

Canadian GST/HST rates at a glance

The applicable rate depends on the province in which the convention is held. Only GST, HST and QST can be refunded through this program.

GST (non-participating provinces)

5%
Alberta, British Columbia, Manitoba, Saskatchewan, Quebec, Territories

HST — Ontario

13%
5% federal + 8% provincial

HST — Nova Scotia

15%
5% federal + 10% provincial

HST — NB · NL · PEI

15%
5% federal + 10% provincial

QST — Quebec

9.975%
9.975% provincial

General Information Only

This page summarizes the Canadian Foreign Convention Program guidelines as set out in CRA Publication RC4036 (Rev. 10/16) and is provided for general reference only.

Canadian Convention

Canada's Foreign Convention Program

Planning a convention in Canada?

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