Booth Set-up at Trade Show
Information and Disclaimer
This interpretation letter was issued based on the specific circumstances or situation of a taxpayer or vendor and the law and tax policy in effect at the time the ruling was issued. Specific facts relevant to your situation may change the application of the tax. In accordance with the Freedom of Information and Protection of Privacy Act, all confidential and identifying information has been removed from this interpretation letter. Please be aware that any statute or policy referred to in this letter may have been superseded. Where a letter contains links to a retail sales tax publication, the link is to our current publication on that subject, regardless of the date that the ruling was originally issued, and the current publication may not be reflective of the information originally provided. In no event shall the Government of Ontario be liable for any damages whatsoever arising out of, or in connection with, the use of the information contained herein.
Interpretation Letter LR-0010, September 2003
Thank you for your facsimile letter dated August 20, 2003 regarding the application of Ontario retail sales tax (RST) to the set up of a booth in Ontario by Company A.
This interpretation is based on the information provided and which is conveyed in the "Understanding of Facts" portion of this ruling. Please review the information for its completeness and accuracy. If it is determined that the information is incomplete or inaccurate, this interpretation will not be binding. In the event that our understanding of the facts is inaccurate or incomplete, please notify the undersigned, in writing, so that we may reconsider our opinion.
Understanding of Facts
Company A has its head office location in Saskatchewan. It sets up and provides services for various
trade shows. Two of its staff may be sent into Ontario in the near future to set up a booth on behalf of a
US based company for approximately
9 days. You would like to know if Company A is required to pay
RST at this show, and whether RST paid can be claimed back because its client is a US based Company.
Legislation and/or Administrative Policy
General guidelines on the application of RST on certain items used in the trade show industry are listed below:
The following charges are subject to RST:
- the sale of a trade show booth or exhibit (unless delivered by the vendor directly to a customer located outside Ontario)
- design fees for new exhibits, refurbishing exhibits or booth layouts (done in Ontario); the preparation of drawings, blueprints, etc. to convey ideas to customers, not resulting in the sale of tangible personal property, is a non-taxable service
- transportation, on the initial sale, of exhibit materials to shows in Ontario when billed by the vendor
- charges for labour and supervisory staff to install and dismantle the exhibit at a trade show site in Ontario, including installers' travelling time
- rentals at trade show site (in Ontario) of furniture, plants, telephone, audit visual equipment, carpet, electrical outlets, telephone, plumbing fixtures, and related items
- rental of panels, chairs, exhibits, etc. unless the rented items are delivered directly out of province by the vendor
- rental of equipment in Ontario without an operator
- contingency to cover cleaning materials, carpet tape, nails, hardware, wrapping materials, etc. to be used on-site when installing the exhibit in Ontario.
The following charges are non-taxable services and are not subject to RST:
- transportation of the exhibit to shows in Ontario and/or back to the warehouse unless transportation applies to the initial sale of goods to customers
- air flights of installers to trade show sites in Ontario provided it is not considered local travel
- storage of the exhibit (either in Ontario or outside Ontario)
- rental of equipment, eg. forklift, with an operator
- labour to run an electrical line, telephone line, and plumbing to an exhibitor's booth
Analysis and Conclusion
Company A will not be required to charge RST on the rental charges/fees for trade show booth floor space purchased by the US company. However, Company A will be required to pay RST on:
- rentals at the trade show site of furniture, plants, telephone, audit visual equipment, carpet, electrical outlets, telephone, plumbing fixtures, and related items
- rental of panels, chairs, exhibits, etc.
- rental of equipment in Ontario without an operator
No refund is available on RST paid for the above.
We are enclosing Sales Tax Guide #506 - Flea Markets, Craft and Trade Shows and Small Business Pointer #901 - The Basics of Retail Sales Tax for your information.
ISBN 0-7794-2507-3
© Queen's Printer for Ontario, 2005
