Canadian Tax Rebates for Foreign Tour Operators

Background

The Foreign Convention and Tour Incentive Program (FCTIP) was created in 2007 to provide GST/HST refunds to foreign tour operators who bring group business to Canada.

FCTIP was designed to replace the GST Visitor Rebate Program, which provided GST rebates of up to $80 million a year. The GST Visitor Rebate Program issued GST refunds paid by non-Canadians who spent $200 or more on eligible goods, for personal use and short-term accommodation.

Problems

The FCTIP program is not working as the government intended, with many tour operators choosing not to apply for rebates. The primary reasons are the administrative complexity of the program, and the time-consuming nature of the paperwork required. Tax preparation in any country can be confusing enough, and understanding a foreign country’s terminology and processes can be a real barrier.

Solutions

Tour Tax Refunds can assist you with the rebate process by completing and filing all required claim forms, and working with FCTIP officials to ensure the timely processing of your claim.

Does your foreign tour qualify under the FCTIP?

An eligible tour package is sold for an all-inclusive price and includes:

short-term or camping accommodation in Canada (see below), AND
at least one service (see below).

Short-term accommodation is usually considered overnight or week-long accommodation in any of:

hotels and motels
resorts and lodges
bed and breakfast establishments

Examples of services include:

guide or interpreter services
transportation services
sightseeing excursions
ski lessons

Still unsure? Contact us!