Public Service Bodies’ Rebate for Charities Resident Only in Nova Scotia

GST/HST Info Sheet GI-175
March 2016

This info sheet will help you calculate your public service bodies’ rebate (PSB rebate) if you are a charity that is:

  • resident in Nova Scotia;
  • not resident in any other province; and
  • not a selected public service body (selected PSB).

This info sheet is for charities that use the “regular method” of calculating the PSB rebate. If a charity uses the “simplified method” to calculate its PSB rebate, it should follow the instructions set out in Guide RC4034, GST/HST Public Service Bodies’ Rebate.

General

A charity may be able to recover a percentage of the GST and the federal part of the HST paid or payableFootnote 1 on its eligible purchases and expenses by claiming a PSB rebate. In addition, a charity resident in a participating province may also be able to claim a PSB rebate to recover a percentage of the provincial part of the HST paid or payable on its eligible purchases and expenses.

A charity resident only in a non-participating province is not entitled to a PSB rebate of the provincial part of the HST.

The PSB rebate is calculated based on your non-creditable tax charged in a given claim period. Your non-creditable tax charged is generally the GST/HST paid or payable on eligible purchases and expenses that cannot be recovered in any way (for example, input tax credits [ITCs], refunds, rebates) other than by claiming a PSB rebate. For more information on how to calculate your non-creditable tax charged, refer to Guide RC4034, GST/HST Public Service Bodies’ Rebate. More detailed information on the non-creditable tax charged will be available in upcoming GST/HST Memorandum 13.5, Non-creditable Tax Charged.

To file your first PSB rebate application, use Form GST66, Application for GST/HST Public Service Bodies’ Rebate and GST Self-Government Refund, and, if applicable, Form RC7066 SCH, Provincial Schedule – GST/HST Public Service Bodies’ Rebate. After we process your first rebate application, we will send you Form GST284, and, if applicable, Form GST284 SCH, which are personalized versions of Form GST66 and Form RC7066 SCH, for your subsequent rebate application.

Definitions such as “public institution”, “non-creditable tax charged”, and “claim period” that apply for GST purposes also apply under the HST and are found in Guide RC4034.

“Participating province” means a province that has harmonized its provincial sales tax with the GST to implement the HST. Participating provinces include New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, and Prince Edward Island, but do not include the Nova Scotia offshore area or the Newfoundland offshore area except to the extent that offshore activities are carried on in that area.

How to use this info sheet

This info sheet sets out eight steps to work through to help you calculate your PSB rebate:

  • The first two steps will help you determine whether this info sheet can be used in your situation to calculate your PSB rebate.
  • Steps 3 to 6 break down how to calculate the PSB rebate of the GST and the federal part of the HST, which is entered on line 305 of Form GST66Footnote 2 .
  • Steps 7 and 8 break down how to calculate the PSB rebate of the provincial part of the HST, which is entered on line 305-NS of Form RC7066 SCH.

How to determine if this info sheet applies to your charity

Step 1 – Determine if you are a charity that is not a selected PSB

To use this info sheet, you must be a charity that is not a selected PSB.

A “charity” means a registered charity or registered Canadian amateur athletic association for income tax purposes, but does not include a public institution. A charity can issue official donation receipts for income tax purposes.

A “selected PSB” is a school authority, a university or a public college that is established and operated other than for profit, a hospital authority, a municipality, a facility operator or an external supplier. If you are any of these bodies, you are a selected PSB and cannot use this info sheet to calculate your PSB rebate.

If you are a charity that is not a selected PSB, go to Step 2.

Step 2 – Determine if you are resident in Nova Scotia and not in any other province

You must know in which province(s) you are resident for purposes of the PSB rebate. This info sheet applies to charities that are resident only in Nova Scotia and not in any other province.

To determine in which province(s) you are resident, refer to GST/HST Info Sheet GI-121, Determining Whether a Public Service Body is Resident in a Province for Purposes of the Public Service Bodies’ Rebate.

How to calculate your PSB rebate amount for line 305 on Form GST66

Step 3 – Determine which steps apply to you

After establishing that this info sheet applies to you, you must determine the steps that apply to calculate your PSB rebate. This determination is based on the tax you paid, as follows:

  • If you only paid the GST, Steps 4 and 6 apply (skip Step 5).
  • If you only paid the HST, Steps 5 to 8 apply (skip Step 4).
  • If you paid both the GST and the HST, Steps 4 to 8 apply.

Step 4 – Calculate your non-creditable GST charged

To calculate your non-creditable GST charged in a particular claim period, do the following:

  • list all the eligible purchases and expenses on which you paid the GST (5%) and determine the amount of the GST paid or payable on each eligible purchase or expense;
  • if you received a provincial point-of-sale rebate of the provincial part of the HST payable on eligible purchases and expenses that are qualifying itemsFootnote 3 (for example, printed books), you must also list such eligible purchases and expenses in this step and determine the amount of the federal part of the HST paid or payable on each qualifying item;
  • from the amount of the GST paid or payable on each eligible purchase or expense, or, if applicable, the federal part of the HST paid or payable on the qualifying items, subtract any ITC, other rebate, refund, or remission that you received or are entitled to receive for any of that amount. The result is the non-creditable GST charged for each purchase or expense; and
  • add all the amounts of the non-creditable GST charged for the particular claim period. The total non-creditable GST charged will be used in Step 6 to calculate the PSB rebate of the GST and/or the federal part of the HST.

Step 5 – Calculate your federal non-creditable HST charged

To calculate your federal non-creditable HST charged in a particular claim period, do the following:

  • list all the eligible purchases and expenses on which you paid the HST at the rate of 12%, determine the amount of HST paid or payable on each eligible purchase or expense, and multiply this amount by the fraction 5/12;
  • list all the eligible purchases and expenses on which you paid the HST at the rate of 13%, determine the amount of HST paid or payable on each eligible purchase or expense, and multiply this amount by the fraction 5/13;
  • list all the eligible purchases and expenses on which you paid the HST at the rate of 14%, determine the amount of HST paid or payable on each eligible purchase or expense, and multiply this amount by the fraction 5/14;
  • list all the eligible purchases and expenses on which you paid the HST at the rate of 15%, determine the amount of HST paid or payable on each eligible purchase or expense, and multiply this amount by the fraction 5/15;

If you received a provincial point-of-sale rebate of the provincial part of the HST payable on qualifying items (for example, printed books), do not list these purchases or expenses in this step; list them in Step 4.

The result of each of the above calculations is the federal part of the HST paid or payable on each eligible purchase or expense.

  • From the amount of the federal part of the HST paid or payable on each eligible purchase or expense, subtract any ITC, other rebate, refund, or remission that you received or are entitled to receive for any of that amount. The result is the federal non-creditable HST charged for each purchase or expense; and
  • add all the amounts of the federal non-creditable HST charged for the particular claim period. The total federal non-creditable HST charged will be used in Step 6 to calculate the PSB rebate of the GST and/or the federal part of the HST.

Step 6 – Calculate your PSB rebate of the GST and/or the federal part of the HST

To calculate your PSB rebate of the GST and/or the federal part of the HST, do the following:

  • add the total non-creditable GST charged that was calculated in Step 4 and the total federal non-creditable HST charged that was calculated in Step 5;
  • multiply the total by 50% (the federal PSB rebate factor for charities); and
  • enter the result on line 305 of Form GST66, under the header “Federal”.

For a full explanation of how to complete the rest of Form GST66, Application for GST/HST Public Service Bodies’ Rebate and GST Self-Government Refund, refer to Guide RC4034, GST/HST Public Service Bodies’ Rebate.

How to calculate your PSB rebate amount for line 305-NS on Form RC7066 SCH

Step 7 – Calculate your provincial non-creditable HST charged

To calculate your provincial non-creditable HST charged in a particular claim period, do the following:

  • list all the eligible purchases and expenses on which you paid the HST at the rate of 12%, determine the amount of HST paid or payable on each eligible purchase or expense, and multiply this amount by the fraction 7/12;
  • list all the eligible purchases and expenses on which you paid the HST at the rate of 13%, determine the amount of HST paid or payable on each eligible purchase or expense, and multiply this amount by the fraction 8/13;
  • list all the eligible purchases and expenses on which you paid the HST at the rate of 14%, determine the amount of HST paid or payable on each eligible purchase or expense, and multiply this amount by the fraction 9/14;
  • list all the eligible purchases and expenses on which you paid the HST at the rate of 15%, determine the amount of HST paid or payable on each eligible purchase or expense, and multiply this amount by the fraction 10/15;

If you received a provincial point-of-sale rebate of the provincial part of the HST payable on qualifying items (for example, printed books), do not list these purchases or expenses in this step; list them in Step 4.

The result of each of the above calculations is the provincial part of the HST paid or payable on each eligible purchase or expense.

  • From the amount of the provincial part of the HST paid or payable on each eligible purchase or expense, subtract any ITC, other rebate, refund, or remission that you received or are entitled to receive for any of that amount. The result is the provincial non-creditable HST charged for each purchase or expense; and
  • add all the amounts of the provincial non-creditable HST charged for the particular claim period. The total provincial non-creditable HST charged will be used in Step 8 to calculate the PSB rebate of the provincial part of the HST.

Step 8 – Calculate your PSB rebate of the provincial part of the HST

To calculate your PSB rebate of the provincial part of the HST, do the following:

  • take the total provincial non-creditable HST charged that was calculated in Step 7 and multiply it by 50%. This is the PSB rebate factor for charities resident in Nova Scotia; and
  • enter the result on line 305-NS of Form RC7066 SCH, under the header “Nova Scotia”.

For a full explanation of how to complete the rest of Form RC7066 SCH, Provincial Schedule – GST/HST Public Service Bodies’ Rebate and Form GST66, Application for GST/HST Public Service Bodies’ Rebate and GST Self-Government Refund, refer to Guide RC4034, GST/HST Public Service Bodies’ Rebate.

Only a charity resident in a participating province is eligible for a PSB rebate of the provincial part of the HST. However, a charity resident in any province may be eligible for other rebates of the provincial part of the HST for property or services removed from a participating province, using Form GST189, General Application for Rebate of GST/HST or Form GST495, Rebate Application for Provincial Part of Harmonized Sales Tax (HST). The amount of these other rebates must be deducted from the amount of the provincial part of the HST paid or payable on the purchase or expense when calculating the provincial non-creditable HST charged in Step 7. For more information, refer to Guide RC4033, General Application for GST/HST Rebates.

For examples of PSB rebate calculations for a charity resident only in Nova Scotia, see the appendix at the end of this document.

Further information

All GST/HST technical publications are available on the CRA website at www.cra.gc.ca/gsthsttech.

To make a GST/HST enquiry by telephone:

  • for general GST/HST enquiries, call Business Enquiries at 1-800-959-5525
  • for technical GST/HST enquiries, call GST/HST Rulings at 1-800-959-8287

If you are located in Quebec, call Revenu Québec at 1-800-567-4692 or visit their website at www.revenuquebec.ca.

If you are a selected listed financial institution (whether or not you are located in Quebec) and require information on the GST/HST or the QST, go to www.cra.gc.ca/slfi or

  • for general GST/HST or QST enquiries, call Business Enquiries at 1-800-959-5525
  • for technical GST/HST or QST enquiries, call GST/HST Rulings SLFI at 1-855-666-5166

Any legislative references in this publication are to the Excise Tax Act (the Act) unless otherwise specified. The information in this publication does not replace the law found in the Act and its regulations.

If this information does not completely address your particular situation, you may wish to refer to the Act or relevant regulation, or call GST/HST Rulings at 1-800-959-8287 for additional information. If you require certainty with respect to any particular GST/HST matter, you may request a ruling. GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, explains how to obtain a ruling or an interpretation and lists the GST/HST rulings centres.

GST/HST Rates
Reference in this publication is made to supplies that are subject to the GST or the HST. The HST applies in participating provinces at the following rates: 13% in Ontario, New Brunswick and Newfoundland and Labrador, 14% in Prince Edward Island and 15% in Nova Scotia. The GST applies in the rest of Canada at the rate of 5%. If you are uncertain as to whether a supply is made in a participating province, see GST/HST Technical Information Bulletin B-103, Harmonized Sales Tax – Place of Supply Rules for Determining Whether a Supply is Made in a Province.

APPENDIX – Examples of PSB rebate calculations for a charity

Example 1

A charity that is not a selected PSB has one office in Halifax and is therefore resident in the participating province of Nova Scotia. It has determined that it is not resident in any other province. During a claim period, it had eligible purchases and expenses.

The following table contains detailed information on these purchases and expenses that the charity will use to calculate its PSB rebate, including the province in which the supply is made, the amount paid, and the tax paid.

Eligible purchases and expenses
Eligible purchases or expenses Province in which the supply is made Amount paid Tax paid
Rent Nova Scotia $24,000 $3,600 (15% HST)
Computers Nova Scotia $3,500 $525 (15% HST)
Software Nova Scotia $1,500 $225 (15% HST)
Rental car Alberta $500 $25 (5% GST)
Hotel Alberta $1,500 $75 (5% GST)

The charity was not eligible to claim any ITCs or any other rebate, refund, or remission of the GST/HST.

The charity will be claiming both a rebate of the GST and the federal part of the HST and a rebate of the provincial part of the HST. Therefore, it will use Step 4 to calculate its non-creditable GST charged, Step 5 to calculate its federal non-creditable HST charged, and Step 7 to calculate its provincial non-creditable HST charged. The PSB rebate of the GST and the federal part of the HST will be calculated in Step 6, and the PSB rebate of the provincial part of the HST will be calculated in Step 8.

Step 4 – Calculate your non-creditable GST charged

The following table shows how the charity calculated its non-creditable GST charged using the calculation described in Step 4.

Non-creditable GST charged
Eligible purchases or expenses GST paid  Subtract ITCs, other rebates, refunds, or remissions Non-creditable GST charged
Rental car $25 − $0 $25
Hotel $75 − $0 $75

The total non-creditable GST charged is $100 ($25 + $75), which is the total of all amounts entered in the last column.

Step 5 – Calculate your federal non-creditable HST charged

The following table shows how the charity calculated its federal non-creditable HST charged using the calculation described in Step 5.

Federal non-creditable HST charged
Eligible purchases or expenses HST Rate Multiply HST paid by appropriate fraction Federal part of HST Subtract ITCs, other rebates, refunds, or remissions Federal non-creditable HST charged
Rent 15% $3,600 × 5/15 $1,200 − $0 $1,200
Computers 15% $525 × 5/15 $175 − $0 $175
Software 15% $225 × 5/15 $75 − $0 $75

The total federal non-creditable HST charged is $1,450 ($1,200 + $175 + $75), which is the total of all amounts entered in the last column.

Step 6 – Calculate your PSB rebate of the GST and/or the federal part of the HST

The charity calculates the PSB rebate of the GST and the federal part of the HST by adding the total non-creditable GST charged (from Step 4) and the total federal non-creditable HST charged (from Step 5), and then multiplying the result by the federal PSB rebate factor for charities (50%), as follows:

($100 + $1,450) × 50% = $775

The total federal amount to be entered on line 305 of Form GST66 is $775.

Step 7 – Calculate your provincial non-creditable HST charged

The following table shows how the charity calculated its provincial non-creditable HST charged using the calculation described in Step 7.

Provincial non-creditable HST charged
Eligible purchases or expenses HST Rate Multiply HST paid by appropriate fraction Provincial part of HST Subtract ITCs, other rebates, refunds, or remissions Provincial non-creditable HST charged
Rent 15% $3,600 × 10/15 $2,400 − $0 $2,400
Computers 15% $525 × 10/15 $350 − $0 $350
Software 15% $225 × 10/15 $150 − $0 $150

The total provincial non-creditable HST charged is $2,900 ($2,400 + $350 + $150), which is the total of all amounts entered in the last column.

Step 8 – Calculate your PSB rebate of the provincial part of the HST

The charity calculates the PSB rebate of the provincial part of the HST by multiplying the total provincial non-creditable HST charged (from Step 7) by the PSB rebate factor (50%) for charities resident in Nova Scotia, as follows:

$2,900 × 50% = $1,450

The total provincial amount to be entered on line 305-NS of Form RC7066 SCH is $1,450.

Example 2

A charity that is not a selected PSB is resident in the participating province of Nova Scotia. It is not resident in any other province. During a claim period, it had eligible purchases and expenses.

The following table contains detailed information on these purchases and expenses that the charity will use to calculate its PSB rebate, including the province in which the supply is made, the amount paid, and the tax paid.

Eligible purchases and expenses
Eligible purchases or expenses Province in which the supply is made Amount paid Tax paid
Meals Prince Edward Island $1,000 $140 (14% HST)
Hotel Prince Edward Island $2,000 $280 (14% HST)
Rent Nova Scotia $15,000 $2,250 (15% HST)
Office equipment Nova Scotia $3,000 $450 (15% HST)

The charity was eligible to claim an ITC of $450 for the HST paid on the purchase of the office equipment, which is capital property used primarily in its commercial activities. The ITC amount for the federal part of the HST was $150 ($450 × 5/15) and the ITC amount for the provincial part of the HST was $300 ($450 × 10/15).

The charity will be claiming both a rebate of the federal part of the HST and a rebate of the provincial part of the HST. Therefore, it will use Step 5 to calculate its federal non-creditable HST charged, and Step 7 to calculate its provincial non-creditable HST charged. The PSB rebate of the federal part of the HST will be calculated in Step 6, and the PSB rebate of the provincial part of the HST will be calculated in Step 8.

Step 5 – Calculate your federal non-creditable HST charged

The following table shows how the charity calculated its federal non-creditable HST charged using the calculation described in Step 5.

Federal non-creditable HST charged
Eligible purchases or expenses HST Rate Multiply HST paid by appropriate fraction Federal part of HST Subtract ITCs, other rebates, refunds, or remissions Federal non-creditable HST charged
Meals 14% $140 × 5/14 $50 − $0 $50
Hotel 14% $280 × 5/14 $100 − $0 $100
Rent 15% $2,250 × 5/15 $750 − $0 $750
Office equipment 15% $450 × 5/15 $150 − $150 $0

The total federal non-creditable HST charged is $900 ($50 + $100 + $750), which is the total of all amounts entered in the last column.

Step 6 – Calculate your PSB rebate of the GST and/or the federal part of the HST

The charity calculates the PSB rebate of the federal part of the HST by multiplying the total federal non-creditable HST charged (from Step 5) by the federal PSB rebate factor for charities (50%), as follows:

$900 × 50% = $450

The total federal amount to be entered on line 305 of Form GST66 is $450.

Step 7 – Calculate your provincial non-creditable HST charged

The following table shows how the charity calculated its provincial non-creditable HST charged using the calculation described in Step 7.

Provincial non-creditable HST charged
Eligible purchases or expenses HST Rate Multiply HST paid by appropriate fraction Provincial part of HST Subtract ITCs, other rebates, refunds, or remissions Provincial non-creditable HST charged
Meals 14% $140 × 9/14 $90 − $0 $90
Hotel 14% $280 × 9/14 $180 − $0 $180
Rent 15% $2,250 × 10/15 $1,500 − $0 $1,500
Office equipment 15% $450 × 10/15 $300 − $300 $0

The total provincial non-creditable HST charged is $1,770 ($90 + $180 + $1,500), which is the total of all amounts entered in the last column.

Step 8 – Calculate your PSB rebate of the provincial part of the HST

The charity calculates the PSB rebate of the provincial part of the HST by multiplying the total provincial non-creditable HST charged (from Step 7) by the PSB rebate factor (50%) for charities resident in Nova Scotia, as follows:

$1,770 × 50% = $885

The total provincial amount to be entered on line 305-NS of Form RC7066 SCH is $885.

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