Museums Retail Sales Tax Exemption
May 13, 2003
The following is in response to the Ontario Museum Association’s request to the Ministry of Culture for information regarding the temporary Retail Sales Tax exemption on prices of admission as it relates to museums and art galleries. The Ministry of Finance responded to the Ministry of Culture with information relevant to museums and art galleries:
On April 30, 2003, the Ontario Legislature passed legislation to exempt from Retail Sales Tax (RST) all prices of admission to places of amusement throughout the Province of Ontario provided after April 30, 2003 and before October 1, 2003.
As a result of the temporary RST exemption, museums and art galleries will not be required to charge RST on a price of admission that will be redeemed after April 30, 2003 and before October 1, 2003. Admissions, that exceed $4.00, to a museum or art gallery after September 30, 2003 will remain taxable at the rate of 10% and are not eligible for a refund, even if the purchase was made during the temporary exemption period.
Taxpayers that were charged RST on an admission, to a museum or art gallery, that will be redeemed during the temporary exemption period, may be entitled to a refund of the RST paid. In order to claim a refund, taxpayers must be able to provide proof of the purchase date, the redemption date(s) of the admission, the location of the place of amusement and proof that RST was charged.
Where a seasons pass is sold by a museum or art gallery, that provides unlimited admission, and the season extends beyond the exemption period, the museum or art gallery may charge RST on a proportional basis (i.e., based on the percentage of days the museum or art gallery is open during the exemption period to the total number of days during the season). If RST was charged by the museum or art gallery without using the proportional method, the taxpayer may apply to the Ministry of Finance, RST Branch for a refund based on the same proportionate calculation.
The Retail Sales Tax Branch has published two Information Notices, entitled “Temporary RST Exemption on Accommodation and Admissions to Places of Amusement in Ontario” and “Refund Information – Temporary RST Exemption on Accommodation and Admissions to Places of Amusement in Ontario,” and a refund application form, “Application for Refund of Retail Sales Tax on Accommodation and Admissions” on the Ministry of Finance website at www.trd.fin.gov.on.ca.
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