On Sept. 25, the
Canadian government abolished the Goods and Services Tax Visitor’s
Rebate Program, which will make doing business in that country
costlier for U.S.-based meeting planners, exhibitors and attendees.
The GST, a 6 percent tax, had formerly been returned to American
attendees and U.S.-based planners for hotel stays, convention site
costs, registration fees and supplies related to conventions in
As of April 1, 2007, the following will
apply: Nonresidents no longer will be eligible for a GST rebate on
accommodation costs; organizers of foreign conventions, where 75
percent of attendees and the sponsor are nonresidents, no longer
will be eligible for the GST rebate for costs of the convention
site or supplies; and nonresident attendees will be required to pay
full GST on admission price to Canadian-organized conventions
(however, if the convention is sponsored by a nonresident, the GST
on admission will not apply to foreign attendees).
In addition, trade show exhibitors will
be required to pay the GST for their floor space costs, unless the
organizer supplying the space is a nonresident.
If a convention contract was signed
prior to Sept. 25, 2006, the GST will be rebated for events
occurring up to April 1, 2009, and nonresident attendees won’t be
subject to the GST for admission costs.