Public Service Bodies' Rebate for Charities Resident Only in Prince Edward Island
GST/HST Info Sheet GI-177
July 2024
This version replaces the one dated July 2020. This info sheet has been updated to reflect amendments made to the Public Service Body Rebate (GST/HST) Regulations that affect charities resident in Prince Edward Island. Effective January 1, 2023, the rebate factor of the provincial part of the HST increased from 35% to 50%.
This info sheet will help you calculate your public service bodies' rebate (PSB rebate) if you are a charity that uses the regular method of calculating the PSB rebate and you meet all of the following conditions:
- you are resident in Prince Edward Island
- you are not resident in any other province
- you are not a selected public service body (selected PSB)
If you are a charity and you use the simplified method to calculate your PSB rebate, you should follow the instructions set out in Guide RC4034, GST/HST Public Service Bodies’ Rebate.
You may be able to claim a PSB rebate for the GST/HST paid or payable in respect of eligible purchases or expenses for a particular claim period, in a rebate application for a later claim period ending after September 8, 2017. For more information, refer to the “Carrying forward a rebate” section in Guide RC4034.
Except as otherwise noted, all statutory references in this publication are to the provisions of the Excise Tax Act (ETA). The information in this publication does not replace the law found in the ETA and its regulations.
If this information does not completely address your particular situation, you may wish to refer to the ETA 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.
If you are located in Quebec and wish to request a ruling related to the GST/HST, please call Revenu Québec at 1-800-567-4692. You may also visit the Revenu Québec website at revenuquebec.ca to obtain general information.
For listed financial institutions that are selected listed financial institutions (SLFIs) for GST/HST or Quebec sales tax (QST) purposes or both, whether or not they are located in Quebec, the CRA administers the GST/HST and the QST. If you wish to make a technical GST/HST or QST enquiry related to SLFIs, please call 1-855-666-5166.
GST/HST rates
Reference in this publication is made to supplies that are subject to the GST or the HST. The HST applies in the participating provinces at the following rates: 13% in Ontario and 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. 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, refer to GST/HST Technical Information Bulletin B-103, Harmonized Sales Tax – Place of Supply Rules for Determining Whether a Supply is Made in a Province.
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 public service bodies' rebate (PSB rebate). In addition, a charity resident in Prince Edward Island 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 is available in GST/HST Memorandum 13-5, Non-creditable Tax Charged.
To file your 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.
Definitions for terms such as public institution, non-creditable tax charged, claim period, facility operator and external supplier 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, as defined in subsection 123(1), are carried on in that area.
How to use this info sheet
This info sheet sets out 8 steps to work through to help you calculate your PSB rebate:
- The first 2 steps help you determine whether this info sheet can be used in your situation to calculate your PSB rebate.
- Steps 3 to 6 help you calculate the PSB rebate of the GST and the federal part of the HST, which is entered on line 305 of Form GST66.
Steps 7 and 8 help you calculate the PSB rebate of the provincial part of the HST, which is entered on line 305-PE 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 public service body
To use this info sheet, you must be a charity that is not a selected public service body (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.
For the purposes of the PSB rebate, a charity also includes a non-profit organization that operates, otherwise than for profit, a health care facility.
A selected public service body means:
- a school authority, a university or a public college that is established and operated otherwise than for profit
- a hospital authority
- a municipality
- a facility operator
- an external supplier
If you are any of the bodies listed above, you are a selected PSB and cannot use this info sheet to calculate your PSB rebate. If you are a selected PSB, refer to Guide RC4034 for information on calculating 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 Prince Edward Island 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 Prince Edward Island 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.
If you are a charity that is not a selected PSB and you are resident in Prince Edward Island only, go to Step 3.
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 all of the following:
- list all the eligible purchases and expenses on which you paid the GST (5%) during that claim period 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 during that claim period on eligible purchases of qualifying itemsFootnote 2 (for example, printed books), you must also list such eligible purchases 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)
- add all the amounts of the non-creditable GST charged for the particular claim period (the total non-creditable GST charged is 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 all of the following:
- List all the eligible purchases and expenses on which you paid the HST during that claim period at the rate of 13%, determine the amount of the 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 during that claim period at the rate of 14%, determine the amount of the 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 during that claim period at the rate of 15%, determine the amount of the HST paid or payable on each eligible purchase or expense, and multiply this amount by the fraction 5/15.
New Brunswick and Newfoundland and Labrador increased their HST rates from 13% to 15% effective July 1, 2016. Prince Edward Island also increased its HST rate from 14% to 15% effective October 1, 2016. You have to determine which tax rate was paid on your eligible purchases and expenses in the particular claim period to calculate your federal non-creditable HST charged.
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 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.
- Add all the amounts of the federal non-creditable HST charged for the particular claim period. The total federal non-creditable HST charged is 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 all of 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)
- 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, refer to Guide RC4034.
When certain conditions are met, you may be able to claim a PSB rebate for the GST/HST paid or payable on an eligible purchase or expense for a particular claim period in a rebate application for a later claim period ending after September 8, 2017. For more information, refer to the “Carrying forward a rebate” section in Guide RC4034.
Carrying-forward a PSB rebate is only permitted where the applicable PSB rebate factor did not change at any time from the beginning of the claim period in which the GST/HST was paid or payable to the end of the later period where the charity would be claiming the rebate. Therefore, charities resident in Prince Edward Island are not permitted to carry forward a PSB rebate for a claim period beginning before January 1, 2023, to the rebate application for a subsequent claim period ending on or after January 1, 2023.
How to calculate your PSB rebate amount for line 305-PE 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 all of the following:
- List all the eligible purchases and expenses on which you paid the HST during that claim period at the rate of 13%, determine the amount of the 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 during that claim period at the rate of 14%, determine the amount of the 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 during that claim period at the rate of 15%, determine the amount of the HST paid or payable on each eligible purchase or expense, and multiply this amount by the fraction 10/15.
New Brunswick and Newfoundland and Labrador increased their HST rates from 13% to 15% effective July 1, 2016. Prince Edward Island also increased its HST rate from 14% to 15% effective October 1, 2016. You have to determine which tax rate was paid on your eligible purchases and expenses in the particular claim period to calculate your provincial non-creditable HST charged.
Prince Edward Island increased its PSB rebate factor for charities for claim periods ending on or after January 1, 2023. For a claim period that straddles January 1, 2023, you have to calculate your provincial non-creditable HST charged separately for eligible purchases and expenses on which tax became payable before January 1, 2023, and for eligible purchases and expenses on which tax became payable after December 31, 2022.
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 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.
- Add all the amounts of the provincial non-creditable HST charged for the particular claim period. The total provincial non-creditable HST charged is used in Step 8 to calculate the PSB rebate of the provincial part of the HST.
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 GST/HST Rebates, or Form GST495, Rebate Application for Provincial Part of Harmonized Sales Tax (HST). For more information, refer to Guide RC4033, General Application for GST/HST Rebates.
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:
For claim periods ending before January 1, 2023:
- multiply the total provincial non-creditable HST charged that was calculated in Step 7 by 35% (the provincial PSB rebate factor before January 1, 2023, for charities resident in Prince Edward Island)
- enter the result on line 305-PE of Form RC7066-SCH, under the header “Prince Edward Island” (use box D of the line 305-PE calculation table on Form RC7066-SCH)
For claim periods beginning on or after January 1, 2023:
- multiply the total provincial non-creditable HST charged that was calculated in Step 7 by 50% (the provincial PSB rebate factor effective January 1, 2023, for charities resident in Prince Edward Island)
- enter the result on line 305-PE of Form RC7066-SCH, under the header “Prince Edward Island” (use box E of the line 305-PE calculation table on Form RC7066-SCH)
For claim periods beginning before January 1, 2023, and ending after January 1, 2023:
- multiply the total provincial non-creditable HST charged for eligible purchases and expenses on which tax became payable before January 1, 2023, that was calculated in Step 7 by 35% (the provincial PSB rebate factor before January 1, 2023, for charities resident in Prince Edward Island)
- enter the result in box D of the line 305-PE calculation table on Form RC7066-SCH, under the header “Prince Edward Island”
- multiply the total provincial non-creditable HST charged for eligible purchases and expenses on which tax became payable after December 31, 2022, that was calculated in Step 7 by 50% (the provincial PSB rebate factor effective January 1, 2023, for charities resident in Prince Edward Island)
- enter the result in box E of the line 305-PE calculation table on Form RC7066-SCH, under the header “Prince Edward Island”
- enter the total result of boxes D and E in box F on line 305-PE of Form RC7066-SCH
For a full explanation of how to complete the rest of Form RC7066-SCH and Form GST66, refer to Guide RC4034.
When certain conditions are met, you may be able to claim a PSB rebate for the GST/HST paid or payable on an eligible purchase or expense for a particular claim period in a rebate application for a later claim period ending after September 8, 2017. For more information, refer to the “Carrying forward a rebate” section in Guide RC4034.
Carrying-forward a PSB rebate is only permitted where the applicable PSB rebate factor did not change at any time from the beginning of the claim period in which the GST/HST was paid or payable to the end of the later period where the charity would be claiming the rebate. Therefore, charities resident in Prince Edward Island are not permitted to carry forward a PSB rebate for a claim period beginning before January 1, 2023, to the rebate application for a subsequent claim period ending on or after January 1, 2023.
Example 1 – Claim period ending before January 1, 2023
A non-registrant charity that is not a selected PSB has one office in Charlottetown and is therefore resident in Prince Edward Island. It is not resident in any other province. It has eligible purchases and expenses on which tax was paid or payable during the claim period of July 1, 2022, to December 31, 2022.
The following table contains detailed information on these purchases and expenses that the charity uses to calculate its PSB rebate, including the province in which the supply is made, the amount paid and the tax paid.
Eligible purchases or expenses |
Province in which the supply is made | Amount paid | Tax paid |
---|---|---|---|
Rent | Prince Edward Island | $20,000 | $3,000 (15% HST) |
Computers | Prince Edward Island | $3,500 | $525 (15% HST) |
Software | Prince Edward Island | $1,500 | $225 (15% HST) |
Rental car | Alberta | $500 | $25 (5% GST) |
Hotel | Alberta | $1,500 | $75 (5% GST) |
The charity is not eligible to claim any ITCs or any other rebate, refund or remission for these GST/HST amounts.
The charity claims 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 uses 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 is calculated in Step 6, and the PSB rebate of the provincial part of the HST is calculated in Step 8.
Step 4 – Calculate your non-creditable GST charged
The following table shows how the charity calculates its non-creditable GST charged using the calculation described in Step 4.
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, which is the total of all amounts entered in the last column ($25 + $75).
Step 5 – Calculate your federal non-creditable HST charged
The following table shows how the charity calculates its federal non-creditable HST charged using the calculation described in Step 5.
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% | $3,000 × 5/15 | $1,000 | − $0 | $1,000 |
Computers | 15% | $525 × 5/15 | $175 | − $0 | $175 |
Software | 15% | $225 × 5/15 | $75 | − $0 | $75 |
The total federal non-creditable HST charged is $1,250, which is the total of all amounts entered in the last column ($1,000 + $175 + $75).
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 + $1,250) × 50% = $675
The total federal amount to be entered on line 305 of Form GST66 is $675.
Step 7 – Calculate your provincial non-creditable HST charged
The following table shows how the charity calculates its provincial non-creditable HST charged using the calculation described in Step 7.
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% | $3,000 ×10/15 | $2,000 | − $0 | $2,000 |
Computers | 15% | $525 × 10/15 | $350 | − $0 | $350 |
Software | 15% | $225 × 10/15 | $150 | − $0 | $150 |
The total provincial non-creditable HST charged is $2,500, which is the total of all amounts entered in the last column ($2,000 + $350 + $150).
Step 8 – Calculate your PSB rebate of the provincial part of the HST
The charity enters the total provincial non-creditable HST charged of $2,500 (from Step 7), in box D of the line 305-PE calculation table on Form RC7066-SCH. The PSB rebate of the provincial part of the HST is calculated by multiplying the total provincial non-creditable HST charged (from Step 7) by the provincial PSB rebate factor (35%) for charities resident in Prince Edward Island, as follows:
$2,500 × 35% = $875
The total provincial amount to be entered on line 305-PE of Form RC7066-SCH is $875.
Example 2 – Claim period beginning after January 1, 2023
A registrant charity that is not a selected PSB is resident in Prince Edward Island. It is not resident in any other province. It has eligible purchases and expenses on which tax is paid or payable during the claim period of April 1, 2023, to March 31, 2024.
The following table contains detailed information on these purchases and expenses that the charity uses to calculate its PSB rebate, including the province in which the supply is made, the amount paid and the tax paid.
Eligible purchases or expenses | Province in which the supply is made | Amount paid | Tax paid |
---|---|---|---|
Meals | Ontario | $1,000 | $130 (13% HST) |
Hotel | Ontario | $2,000 | $260 (13% HST) |
Rent | Prince Edward Island | $15,000 | $2,250 (15% HST) |
Office equipment | Prince Edward Island | $3,000 | $450 (15% HST) |
The charity is 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 is $150 ($450 × 5/15) and the ITC amount for the provincial part of the HST is $300 ($450 × 10/15).
The charity claims both a rebate of the federal part of the HST and a rebate of the provincial part of the HST. Therefore, it uses 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 is calculated in Step 6, and the PSB rebate of the provincial part of the HST is calculated in Step 8.
Step 5 – Calculate your federal non-creditable HST charged
The following table shows how the charity calculates its federal non-creditable HST charged using the calculation described in Step 5.
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 | 13% | $130 × 5/13 | $50 | − $0 | $50 |
Hotel | 13% | $260 × 5/13 | $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, which is the total of all amounts entered in the last column ($50 + $100 + $750).
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 calculates its provincial non-creditable HST charged using the calculation described in Step 7.
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 | 13% | $130 × 8/13 | $80 | − $0 | $80 |
Hotel | 13% | $260 × 8/13 | $160 | − $0 | $160 |
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 $1,740, which is the total of all amounts entered in the last column ($80 + $160 + $1,500).
Step 8 – Calculate your PSB rebate of the provincial part of the HST
The charity enters the total provincial non-creditable HST charged of $1,740 (from Step 7) in box E of the line 305 calculation table on Form RC7066-SCH. The charity calculates the PSB rebate of the provincial part of the HST by multiplying the total provincial non-creditable HST charged by the provincial PSB rebate factor (50%) for charities resident in Prince Edward Island, as follows:
$1,740 × 50% = $870
The total provincial amount to be entered on line 305-PE of Form RC7066-SCH is $870.
Example 3 – Claim period beginning before January 1, 2023, and ending after January 1, 2023
A non-registrant charity that is not a selected PSB is resident in Prince Edward Island. It is not resident in any other province. The charity has eligible purchases and expenses on which tax was paid or payable during the claim period of October 1, 2022, to March 31, 2023.
The following table contains detailed information on these purchases and expenses that the charity uses to calculate its PSB rebate, including the province in which the supply is made, the amount paid, the tax paid and the date the tax became payable.
Eligible purchases or expenses | Province in which the supply is made | Amount paid | Tax paid | Date tax became payable |
---|---|---|---|---|
Rent | Prince Edward Island | $7,000 | $1,050 (15% HST) | January 1, 2023 |
Computers | Prince Edward Island | $5,000 | $750 (15% HST) | February 28, 2023 |
Software | Prince Edward Island | $2,000 | $300 (15% HST) | October 31, 2022 |
Meals | Ontario | $1,000 | $130 (13% HST) | November 15, 2022 |
Hotel | Ontario | $2,500 | $325 (13% HST) | November 15, 2022 |
The charity is not eligible to claim any ITCs or any other rebate, refund or remission for these HST amounts.
The charity claims both a rebate of the federal part of the HST and a rebate of the provincial part of the HST. Therefore, it uses 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 is calculated in Step 6, and the PSB rebate of the provincial part of the HST is calculated in Step 8.
Step 5 – Calculate your federal non-creditable HST charged
The following table shows how the charity calculates its federal non-creditable HST charged using the calculation described in Step 5.
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% | $1,050 × 5/15 | $350 | − $0 | $350 |
Computers | 15% | $750 × 5/15 | $250 | − $0 | $250 |
Software | 15% | $300 × 5/15 | $100 | − $0 | $100 |
Meals | 13% | $130 × 5/13 | $50 | − $0 | $50 |
Hotel | 13% | $325 × 5/13 | $125 | − $0 | $125 |
The total federal non-creditable HST charged is $875, which is the total of all amounts entered in the last column ($350 + $250 + $100 + $50 + $125).
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:
$875 × 50% = $437.50
The total federal amount to be entered on line 305 of Form GST66 is $437.50.
Step 7 – Calculate your provincial non-creditable HST charged
As the claim period straddles January 1, 2023, the charity must calculate its provincial non-creditable HST charged separately for eligible purchases and expenses on which tax became payable before January 1, 2023, and for eligible purchases and expenses on which tax became payable after December 31, 2022.
The following table shows how the charity calculates its provincial non-creditable HST charged for eligible purchases and expenses on which tax became payable before January 1, 2023, using the calculation described in Step 7.
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 |
---|---|---|---|---|---|
Software | 15% | $300 × 10/15 | $200 | − $0 | $200 |
Meals | 13% | $130 × 8/13 | $80 | − $0 | $80 |
Hotel | 13% | $325 × 8/13 | $200 | − $0 | $200 |
The total provincial non-creditable HST charged for eligible purchases and expenses on which tax became payable before January 1, 2023, is $480, which is the total of all amounts entered in the last column ($200 + $80 + $200).
The following table shows how the charity calculates its provincial non-creditable HST charged for eligible purchases and expenses on which tax became payable after December 31, 2022, using the calculation described in Step 7.
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% | $1,050 × 10/15 | $700 | − $0 | $700 |
Computers | 15% | $750 × 10/15 | $500 | − $0 | $500 |
The total provincial non-creditable HST charged for eligible purchases and expenses on which tax became payable after December 31, 2022, is $1,200, which is the total of all amounts entered in the last column ($700 + $500).
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 first multiplying the total provincial non-creditable HST charged for eligible purchases and expenses on which tax became payable before January 1, 2023, (from Step 7) by the provincial PSB rebate factor (35%) for charities resident in Prince Edward Island, as follows:
$480 × 35% = $168
The charity enters this amount in box D of the line 305-PE calculation table on Form RC7066-SCH.
The charity then multiplies the total provincial non-creditable HST charged for eligible purchases and expenses on which tax became payable after December 31, 2022 (from Step 7) by the provincial PSB rebate factor (50%) for charities resident in Prince Edward Island, as follows:
$1,200 × 50% = $600
The charity enters this amount in box E of the line 305-PE calculation table.
The total provincial amount to be entered on line 305-PE of Form RC7066-SCH is $768 ($168 + $600).
Further information
All GST/HST technical publications are available at GST/HST technical information.
To make a GST/HST enquiry by telephone:
- for GST/HST general enquiries, call Business Enquiries at 1-800-959-5525
- for GST/HST technical 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 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 GST/HST and QST information for financial institutions, including selected listed financial institutions 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
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