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NTA Joins in Opposition to Eliminating GST Visitor Rebate

September 28, 2006

NTA Joins in Opposition to Eliminating GST Visitor Rebate
Sept. 28, 2006 – The National Tour Association joins with its Canadian professional partners in voicing opposition to the elimination of the Canadian Goods and Services Tax Visitor Rebate Program, as announced by the Canadian Federal Government this week.

 

"The elimination of the GST Visitor Rebate further aggravates and impedes packaged tour commerce to and from Canada," said NTA Legislative Counsel Jim Santini. "This arbitrary decision hampers Canada’s visitor-friendly image and will most definitely lead to a decline in visitor spending. We look forward to working with our Canadian colleagues to press for the reinstatement of this rebate."

 

Currently, the Visitor Rebate Program reimburses travelers for the GST and the Harmonized Sales Tax they pay on eligible goods and short-term accommodations. The government is calling to eliminate the program effective April 1, 2007.

 

NTA has received clarification on how this will affect tour operators. NTA has learned that under the proposed amendments, if a written agreement for a supply to which GST relief applies was entered into prior to Sept. 26, 2006, the relief would continue to be available to recognize the fact that contracts may have been negotiated based on the availability of that relief. Therefore, the proposed amendments for tour operators would apply as follows:

  • Non-residents would no longer be eligible for a rebate of GST in respect of tour packages where the first night of accommodation in Canada included in the tour package is after March 31, 2007.
  • This GST rebate would continue to be available in respect of tour packages purchased under a written agreement entered into before Sept. 26, 2006, if the first night of accommodation in Canada is before April 1, 2009.

Over 20 years ago, NTA led U.S. travel and tour associations in direct advocacy appeals to key Canadian government officials. The groups joined with Canadian partners in seeking implementation of this vital incentive program to stimulate U.S. group and individual travel to Canada.

The National Tour Association was established in 1951 as a unified voice to fight legislation in the newly formed packaged travel industry. Today, NTA’s government relations activities include monitoring security issues, as well as state and federal legislation and regulatory issues affecting the travel and tourism industry. NTA maintains full-time representation in Washington, D.C., to serve as the association’s voice on Capitol Hill. Additionally, NTA empowers its members to be advocates for the association on the local level, as well as to provide support for NTA’s positions on national priority issues through its Grassroots Action Network. For more information on NTA’s government relations activities, please visit http://www.nta.travel/ or call 800.682.8886.

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