CRA recently released a new and updated Info Sheet (GI-037) on how the GST/HST applies to children’s camps operated by public sector bodies. This Info Sheet applies to all public sector bodies including governments, charities, non-profit organizations, municipalities, universities, public colleges, school authorities and hospital authorities operating overnight and day camps that involve the supervision or instruction of recreational or athletic activities.
Camps that offer recreational or athletic activities to children, and include overnight supervision, will have their supplies subject to GST/HST. Overnight supervision includes supervision by volunteers and includes overnight camps offered to children of all ages. It is important to note that even if children at the camp receive other forms of instruction at the same time, such as religious instruction or computer training, GST/HST will still need to be charged as it is an overnight camp.
Camps run as a day camp will have the supplies of the camp exempt from HST/GST if the camp is primarily (over 50%) for children under the age of 14.
Camps for the Underprivileged or Individuals with a Disability
Camps that provide recreational or athletic activities primarily (over 50%) to individuals who are underprivileged or who have a disability will have their supplies exempt from GST/HST. Camps in this category may be overnight or day camps, and the age of the individuals attending the camps does not matter.
Important Notes on GST/HST
Public sector bodies (other than a government) who are small suppliers will not have to collect GST/HST. A small supplier is considered an organization that has “revenues from taxable supplies from all of the activities of the organization are $50,000 or less in the last four consecutive calendar quarters and in any single calendar quarter.” Charities or public institutions may also qualify as small suppliers if their gross revenue, of either of their two preceding fiscal years, does not exceed $250,000.
Organizations wishing to find out more information on the GST/HST and its application to their camp, can review the Info Sheet at: http://www.cra-arc.gc.ca/E/pub/gi/gi-037/gi-037-e.html.