Admissions

RST Small Business Pointer 909, November 2008

• This Small Business Pointer will help you if you charge admission to your place of business or to an event. It explains the basic Retail Sales Tax (RST) rules for your type of business.

What is an admission?

An admission is a charge to enter a place of amusement. Places of amusement are generally classified as places where persons can view an event, performance (live or recorded) or other form of entertainment. Examples include:

• bars or restaurants with dance floors
• night clubs
• public dances where alcoholic beverages are served
• amusement parks
• exhibitions and shows, such as craft, home, auto, boat
• places where movies are shown
• concerts
• sporting events.

Exempt Admissions

Do not charge RST on admissions to:

• a live performance or a dance with a live band if at least 90% of the performers are Canadian, or
• a live-entertainment theatre show with 3,200 seats or fewer (dinner theatres, comedy clubs, plays, concerts, etc.)

For more information on exempt admissions, see RST Guide 303 - Admissions.

Charging RST

Two RST rates may apply in your business. You charge RST at:

• 10 per cent on admission charges over $4.00, and on alcoholic beverages
• 8 per cent on meals (prepared foods) over $4.00, snack foods, and soft drinks.

You can bill for admissions in one of two ways:

• show the RST separately, or
• use tax-included pricing.

You must use the method you choose consistently. If you use tax-included pricing, you must show on the tickets, or post a sign, that 10 per cent RST is included in the price of admission, where applicable.

How to calculate RST with tax-included pricing

If your prices include the federal Goods and Services Tax (GST), you must not charge RST on the GST. Use a factor, as described below, to determine the correct RST amount.

If your price includes...	and...	then...
both RST & GST	you do not state the actual RST included in each admission price	multiply the tax-included admission price by: 10/115 to arrive at the RST amount.
both RST & GST	you state the actual RST included in each item	multiply the actual RST included in the price by the number of admission tickets issued. Example: If the RST amount included in the ticket price is $0.50 and you issue 10 tickets, the RST on the sale is $0.50 × 10 = $5.00.
GST	you charge RST separately	multiply the GST-included price by: 9.5238% for admission prices over $4.20. This method is the same as applying 10% RST on the GST-excluded price. Do not show the factor on your customer's bill.

For more information on tax-included pricing see RST Guide 208 - Tax-Included Pricing.

What about package deals?

If you charge one package price for both meals (prepared foods) and entertainment (admission), you may charge RST at 8 per cent on the meal portion and RST at 10 per cent on the entertainment portion if each portion amounts to more than $4.00 and you:

• show the meal and entertainment prices separately on the tickets and clearly post the prices
• provide your customer with the option of paying for the entertainment portion without the meal, and
• sell the package for less than the total of the individual charges for the meal and entertainment and apply the discounted price difference proportionally to the meal and the admission price.

If you cannot meet the above three conditions, then apply RST at 10 per cent to the total amount charged if over $4.00.

When the package price includes exempt admission and the meal charge is over $4.00, charge RST at 8 per cent on the meal portion only, as long as you can meet the above three conditions. If you cannot meet these conditions, then charge RST at 8 per cent to the total package price.

For more information on the sales of prepared foods see Small Business Pointer 906 - Prepared Foods.

On what do I pay RST?

You must pay RST on all taxable goods and services you buy to provide or promote the entertainment. These include:

• printing of tickets
• staging props, lights, sound system
• furniture, equipment and supplies
• give-away or promotional items.

When you give away free taxable tickets for promotional purposes, you must pay RST on the usual selling price of those tickets. Report this amount on Line 3 of your RST return. Instructions on how to complete your RST return are included with your return.

Keeping records

You must keep all books and records to support your sales and purchases for at least seven years. Such records include all cash register tapes, guest checks, sales invoices and journals, purchase invoices and journals, bank records and financial statements.

More information

The information contained in this publication is provided only as a guideline and is not intended to replace the legislation. Whether tax applies in your situation will depend on the specific facts involved. Please contact us if you have questions.

Telephone

• 1 866 ONT-TAXS (1 866 668-8297)
• Teletypewriter (TTY) 1 800 263-7776

Online

To obtain the most current version of this publication visit our website at ontario.ca/revenue.

Written Interpretation

To obtain a written interpretation on a specific situation not addressed in this publication, please send your request in writing to:

Ministry of Revenue
Tax Advisory Services Branch
Retail Sales Tax Section
33 King Street West, 3rd Floor
Oshawa ON L1H 8H5

© Queen's Printer for Ontario, 2008

ISBN 978-1-4249-8441-1