Public Service Bodies’ Rebate for Qualifying Non-profit Organizations Resident Only in Ontario

GST/HST Info Sheet GI-184
March 2016

This info sheet will help you calculate your public service bodies’ rebate (PSB rebate) if you are a qualifying non-profit organization (qualifying NPO) that is:

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

This info sheet is for qualifying NPOs that use the “regular method” of calculating the PSB rebate. If a qualifying NPO 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 qualifying NPO 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 qualifying NPO 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 qualifying NPO 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 nine steps to work through to help you calculate your PSB rebate:

  • The first three steps will help you determine whether this info sheet can be used in your situation to calculate your PSB rebate.
  • Steps 4 to 7 break down how to calculate the PSB rebate of the GST and the federal part of the HST, which is entered on line 306 of Form GST66Footnote 2.
  • Steps 8 and 9 break down how to calculate the PSB rebate of the provincial part of the HST, which is entered on line 306-ON of Form RC7066 SCH.

How to determine if this info sheet applies to your qualifying NPO

Step 1 – Determine if you are a non-profit organization that is not a selected PSB

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

A “non-profit organization” (NPO) means a person (other than an individual, estate, trust, charity, public institution, municipality or government) that meets the following conditions:

  • it is organized and operated solely for non-profit purposes; and
  • it does not distribute or make available any of its income for the personal benefit of any proprietor, member or shareholder, unless the proprietor, member or shareholder is a club, a society or an association that has, as its primary purpose and function, the promotion of amateur athletics in Canada.

You may also refer to GST/HST Policy Statement P-215, Determination of Whether an Entity Is a "Non-Profit Organization" for Purpose of the Excise Tax Act.

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 an NPO that is not a selected PSB, go to Step 2.

Step 2 – Determine if you are a qualifying NPO

To be considered a qualifying NPO at any time in a fiscal year, you must be an NPO and your percentage of government funding for the fiscal year must be at least 40% of your total revenue. To find out how to calculate the percentage of government funding, refer to Guide RC4034, GST/HST Public Service Bodies’ Rebate.

If you are a qualifying NPO that is not a selected PSB, go to Step 3.

Step 3 – Determine if you are resident in Ontario 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 qualifying NPOs that are resident only in Ontario 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 306 on Form GST66

Step 4 – 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 5 and 7 apply (skip Step 6).
  • If you only paid the HST, Steps 6 to 9 apply (skip Step 5).
  • If you paid both the GST and the HST, Steps 5 to 9 apply.

Step 5 – 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 7 to calculate the PSB rebate of the GST and/or the federal part of the HST.

Step 6 – 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 5.

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 7 to calculate the PSB rebate of the GST and/or the federal part of the HST.

Step 7 – 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 5 and the total federal non-creditable HST charged that was calculated in Step 6;
  • multiply the total by 50% (the federal PSB rebate factor for qualifying NPOs); and
  • enter the result on line 306 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 306-ON on Form RC7066 SCH

Step 8 – 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 5.

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 9 to calculate the PSB rebate of the provincial part of the HST.

Step 9 – 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 8 and multiply it by 82%. This is the PSB rebate factor for qualifying NPOs resident in Ontario; and
  • enter the result on line 306-ON of Form RC7066 SCH, under the header “Ontario”.

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 qualifying NPO resident in a participating province is eligible for a PSB rebate of the provincial part of the HST. However, a qualifying NPO 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 8. For more information, refer to Guide RC4033, General Application for GST/HST Rebates.

For examples of PSB rebate calculations for a qualifying NPO resident only in Ontario, 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 qualifying NPO

Example 1

A qualifying NPO that is not a selected PSB has one office in Toronto and is therefore resident in the participating province of Ontario. 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 qualifying NPO 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 Ontario $20,000 $2,600 (13% HST)
Computers Ontario $3,500 $455 (13% HST)
Software Ontario $1,500 $195 (13% HST)
Rental car Alberta $500 $25 (5% GST)
Hotel Alberta $1,500 $75 (5% GST)

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

The qualifying NPO 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 5 to calculate its non-creditable GST charged, Step 6 to calculate its federal non-creditable HST charged, and Step 8 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 7, and the PSB rebate of the provincial part of the HST will be calculated in Step 9.

Step 5 – Calculate your non-creditable GST charged

The following table shows how the qualifying NPO calculated its non-creditable GST charged using the calculation described in Step 5.

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 6 – Calculate your federal non-creditable HST charged

The following table shows how the qualifying NPO calculated its federal non-creditable HST charged using the calculation described in Step 6.

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 13% $2,600 × 5/13 $1,000 − $0 $1,000
Computers 13% $455 × 5/13 $175 − $0 $175
Software 13% $195 × 5/13 $75 − $0 $75

The total federal non-creditable HST charged is $1,250 ($1,000 + $175 + $75), which is the total of all amounts entered in the last column.

Step 7 Calculate your PSB rebate of the GST and/or the federal part of the HST

The qualifying NPO calculates the PSB rebate of the GST and the federal part of the HST by adding the total non-creditable GST charged (from Step 5) and the total federal non-creditable HST charged (from Step 6), and then multiplying the result by the federal PSB rebate factor for qualifying NPOs (50%), as follows:

($100 + $1,250) × 50% = $675

The total federal amount to be entered on line 306 of Form GST66 is $675.

Step 8 – Calculate your provincial non-creditable HST charged

The following table shows how the qualifying NPO calculated its provincial non-creditable HST charged using the calculation described in Step 8.

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 13% $2,600 × 8/13 $1,600 − $0 $1,600
Computers 13% $455 × 8/13 $280 − $0 $280
Software 13% $195 × 8/13 $120 − $0 $120

The total provincial non-creditable HST charged is $2,000 ($1,600 + $280 + $120), which is the total of all amounts entered in the last column.

Step 9 – Calculate your PSB rebate of the provincial part of the HST

The qualifying NPO calculates the PSB rebate of the provincial part of the HST by multiplying the total provincial non-creditable HST charged (from Step 8) by the PSB rebate factor (82%) for qualifying NPOs resident in Ontario, as follows:

$2,000 × 82% = $1,640

The total provincial amount to be entered on line 306-ON of Form RC7066 SCH is $1,640.

Example 2

A qualifying NPO that is not a selected PSB is resident in the participating province of Ontario. 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 qualifying NPO 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 Ontario $15,000 $1,950 (13% HST)
Office supplies Ontario $3,000 $390 (13% HST)
Meals Prince Edward Island $1,000 $140 (14% HST)
Hotel Prince Edward Island $2,000 $280 (14% HST)

The qualifying NPO was eligible to claim an ITC of $104 for the HST paid on the purchase of the office supplies, which were used partially in its commercial activities. The ITC amount for the federal part of the HST was $40 ($104 × 5/13) and the ITC amount for the provincial part of the HST was $64 ($104 × 8/13).

The qualifying NPO 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 6 to calculate its federal non-creditable HST charged, and Step 8 to calculate its provincial non-creditable HST charged. The PSB rebate of the federal part of the HST will be calculated in Step 7, and the PSB rebate of the provincial part of the HST will be calculated in Step 9.

Step 6 – Calculate your federal non-creditable HST charged

The following table shows how the qualifying NPO calculated its federal non-creditable HST charged using the calculation described in Step 6.

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 13% $1,950 × 5/13 $750 − $0 $750
Office supplies 13% $390 × 5/13 $150 − $40 $110
Meals 14% $140 × 5/14 $50 − $0 $50
Hotel 14% $280 × 5/14 $100 − $0 $100

The total federal non-creditable HST charged is $1,010 ($750 + $110 + $50 + $100), which is the total of all amounts entered in the last column.

Step 7 – Calculate your PSB rebate of the GST and/or the federal part of the HST

The qualifying NPO calculates the PSB rebate of the federal part of the HST by multiplying the total federal non-creditable HST charged (from Step 6) by the federal PSB rebate factor for qualifying NPOs (50%), as follows:

$1,010 × 50% = $505

The total federal amount to be entered on line 306 of Form GST66 is $505.

Step 8 – Calculate your provincial non-creditable HST charged

The following table shows how the qualifying NPO calculated its provincial non-creditable HST charged using the calculation described in Step 8.

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 13% $1,950 × 8/13 $1,200 − $0 $1,200
Office supplies 13% $390 × 8/13 $240 − $64 $176
Meals 14% $140 × 9/14 $90 − $0 $90
Hotel 14% $280 × 9/14 $180 − $0 $180

The total provincial non-creditable HST charged is $1,646 ($1,200 + $176 + $90 + $180), which is the total of all amounts entered in the last column.

Step 9 – Calculate your PSB rebate of the provincial part of the HST

The qualifying NPO calculates the PSB rebate of the provincial part of the HST by multiplying the total provincial non-creditable HST charged (from Step 8) by the PSB rebate factor (82%) for qualifying NPOs resident in Ontario, as follows:

$1,646 × 82% = $1,349.72

The total provincial amount to be entered on line 306-ON of Form RC7066 SCH is $1,349.72.

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