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:

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:

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:

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:

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:

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.

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:

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:

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.

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:

For claim periods beginning on or after January 1, 2023:

For claim periods beginning before January 1, 2023, and ending after January 1, 2023:

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 and expenses – example 1
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.

Non-creditable GST charged – example 1
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.

Federal non-creditable HST charged – example 1
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.

Provincial non-creditable HST charged – example 1
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 and expenses – example 2
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.

Federal non-creditable HST charged – example 2
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.

Provincial non-creditable HST charged – example 2
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 and expenses – example 3
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.

Federal non-creditable HST charged – example 3
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.

Provincial non-creditable HST charged before January 1, 2023 – example 3
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.

Provincial non-creditable HST charged after December 31, 2022– example 3
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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