Tax Information for IEEE Conferences
- U.S. Conference Information - current as of 5 March 2008
- Non-U.S. Conference Information - current as of 5 March 2008
- Canadian Conference Information -current as of 18 April 2008
U.S. Conference Information
In the United States, the IEEE is exempt from paying income taxes and is also exempt from paying federal and state income taxes on conference net surpluses. In addition, IEEE is exempt from paying state sales taxes on purchases in 17 states in the U.S., although there may be some restrictions in some of those states.
For more information on sales tax exemptions and a copy of the state exemption certificates, see U.S. Sales Tax Exemptions.
Please note that in general, conference fee revenue is normally exempt from state sales tax, but revenue received from the sale of books and other such items are subject to sales tax in most states.
Non-U.S. Conference Information
Outside of the U.S., there are other taxes that may be required to be collected by conferences, such as the Value Added Tax (VAT) and the Goods & Services Tax (GST) in Canada and Singapore. There are also exemptions from paying the VAT and GST taxes but the rules are unique by country. For more information regarding VAT/GST, please refer to VAT & GST Information. Also, in most countries where the U.S. has an Income Tax Treaty, IEEE is excluded from paying income taxes. For more information regarding income tax treaties, please refer to Income Tax Treaty Information.
Canadian Conference Information
Definitions
• The Goods and Services Tax (GST) is a tax on most goods and services provided in Canada. The tax rate is 5%.
• The Harmonized Sales Tax (HST) replaces the provincial sales tax (PST) and GST in the provinces of Newfoundland, Nova Scotia, and New Brunswick. The tax rate is 13%.
• Foreign Convention: A conference or convention where at least 75% of participants are non-residents and the sponsor is a non-resident. IEEE is a non-resident sponsor. For detailed information please see Info Sheet GI-029 on Canada Revenue Agency Website or contact IEEE Tax Dept.
• Canadian Convention: A conference or convention where 25% or more of the participants are residents. For detailed information please see Info Sheet GI-027 on Canada Revenue Agency Website or contact IEEE Tax Dept.
GST\HST Information
• Conference registration fees, exhibit space rental, and sales of books, educational materials and other goods are taxable for the GST/HST.
• If more than 25% of the conference attendees are expected to be Canadian residents, the conference must register for and collect the GST/HST. GST/HST paid by the conference, on convention arrangements and supplies, can be recovered as input credits when filing the GST returns.
• Foreign conventions are not required to register for and collect the GST/HST.
• Sponsors and organizers of foreign conventions in Canada would be eligible for a rebate of GST in respect of a convention site or related convention supplies.
• How to determine Canadian or Foreign Convention status: To determine the number of Canadian attendees you can reasonably expect to attend the conference, use the percentage of Canadian residents: 1) who attended previous IEEE conferences in Canada; 2) who are usually invited to attend the conference; or 3) are listed as members of IEEE. Canadian members account for approximately 10% of total IEEE membership but the other factors must also be used to reasonably determine the percentage of attendance. You need to keep documents available in the conference records to support how you determined the percentage of Canadian and non-resident attendees in case of an audit by Revenue Canada. However, if your determination was reasonable and you discover after the conference that more than 25% of the attendees were Canadian residents, the GST/HST status of the conference will not change.
Admissions to Conventions/Conferences:
• A sponsor of a Canadian convention which begins before April 1, 2007 is not required to charge non-resident attendees of the convention any GST on the portion of the admission tax that is reasonably attributable to the provision of the convention facility or related convention supplies. However, for Canadian conventions that begin after March 31, 2007, non-residents are required to pay GST on the admission price to a Canadian convention. For detailed information on the amount of admission subject to tax please see Info Sheet GI-027 on Canada Revenue Agency Website or contact IEEE Tax Dept.
A sponsor of a foreign convention is not required to charge GST on any admission to the convention (whether the attendee is resident or non-resident).
The rules in respect to admissions to a convention in Canada held before April 1, 2007 would continue to apply to conventions in Canada held before April 1, 2009 if the supply of the admission were made under a written agreement entered into before September 25, 2006.
Exhibitors:
Non-resident exhibitors at a Canadian or foreign convention that begin before April 1, 2007 are either not required to pay GST or are eligible for a rebate of GST in respect of the use of the convention site and any related convention supplies acquired by the exhibitor in relation to the convention.
For Canadian conventions that begin after March 31, 2007, non-resident exhibitors are required to pay GST, and would no longer be eligible for a rebate of GST, in respect of any supply for the use of a convention site or related convention supplies for a Canadian convention.
In the case of foreign conventions there is no GST in respect of a convention site or related convention supplies supplied to an exhibitor by the sponsor of a foreign convention. However, for foreign conventions that begin in Canada after March 31, 2007, if the supplier is not the sponsor of the foreign convention, the non-resident exhibitors are not eligible for a rebate of GST in respect of any supply for the use of a convention site or related convention supplies.
The rules in respect to supplies to a non-resident exhibitor at a convention in Canada held before April 1, 2007 would continue to apply in respect to supplies to a non-resident exhibitor at a convention in Canada held before April 1, 2009 if the supplies were made under a written agreement entered into before September 25, 2006.
How to Register for the GST/HST
Contact the IEEE Tax Administration Department for assistance: tax-compliance@ieee.org
How to Get a Tax Rebate if not required to Register for the GST/HST as a Foreign Convention
If you are eligible for a rebate a Canadian convention facility or hotel operator can directly credit you with an amount equal to the GST/HST payable on the convention facility, conference related goods and services, and hotel accommodations direct billed to the conference. This means that you do not have to pay GST/HST and file a rebate application after the conference. The tax credit is a voluntary option on the part of the Canadian convention facility or hotel operator and has to be negotiated between the two of you. Before giving you a credit equal to the tax payable, the Canadian supplier may ask you to certify that your event qualifies for a tax rebate. Suppliers other than convention facility and hotel operators cannot credit the rebate. For goods and services purchased from other suppliers, you have to pay the tax and apply for a rebate if you are eligible for the rebate.
Again, if you are eligible for a rebate, Revenue Canada will refund GST/HST, Quebec TVQ and Manitoba PST paid on conference related purchases. Rebates can be obtained by completing and mailing the rebate application form supported by copies of invoices showing the amount of tax paid, copies of the canceled checks for these payments and a conference agenda, itinerary, or program. Contact the IEEE Tax Compliance & Administration Department for assistance: tax-compliance@ieee.org.
