Introduced: 1991
Rates: 5% GST (federal)
Up to 15% HST in participating provinces
Additional QST in Québec

Canada’s system is layered and requires precise analysis of where the service is consumed.

Tax Treatment

• Hotels: GST or HST applies depending on the province.

• Travel agents and DMCs: must determine the “place of supply” rule to identify the correct rate. Place-of-supply rules determine whether GST, HST, or QST applies. These rules depend on where the service is performed, where the customer is located, and the type of supply.

• Event organisers: local expenses (hotels, catering, venue hire) carry provincial tax combinations.

Registration for Non-Residents

You may need to register if:

• You sell taxable services to Canadian consumers, or

• You carry on business in Canada (a broad definition).

Refund Options - See VAT Reclaim

Canada offers a unique mechanism:

• Foreign Convention and Tour Incentive Program (FCTIP) — allows refunds of GST/HST on certain accommodation and tour packages for non-resident groups.

Documentation must be perfect, especially for hotel invoices.

Antravia helps: interpret provincial rules, determine if FCTIP applies, and prepare compliant documentation.

Not sure where to start? Antravia free Consultation

Disclaimer:
Content published by Antravia is provided for informational purposes only and reflects research, industry analysis, and our professional perspective. It does not constitute legal, tax, or accounting advice. Regulations vary by jurisdiction, and individual circumstances differ. Readers should seek advice from a qualified professional before making decisions that could affect their business.
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