Public Service Bodies’ Rebate for Qualifying Non-profit Organizations Resident in Two or More Provinces, at Least One of Which Is a Participating Province

GST/HST Info Sheet GI-187
July 2020

This version replaces the one dated March 2016.

In this publication, all legislative references to the “Act” are to the Excise Tax 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.

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, 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.

General

A qualifying NPO may be able to recover a percentage of the GST and the federal part of the HST paid or payable^{Footnote 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.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 are carried on in that area.

How to use this info sheet

This info sheet sets out 9 steps to work through to help you calculate your PSB rebate:

• The first 3 steps will help you determine whether this info sheet can be used in your situation to calculate your PSB rebate.
• Steps 4 to 6 will help you calculate the PSB rebate of the GST and the federal part of the HST, which is entered on line 306 of Form GST66.
• Steps 7 to 9 will help you calculate the PSB rebate of the provincial part of the HST, which is entered on the applicable line 306 for each participating province in which you are resident on 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 a selected PSB, refer to Guide RC4034 for information on calculating 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.

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

Step 3 – Determine if you are resident in 2 or more provinces, at least 1 of which is a participating province

You must know in which provinces you are resident for purposes of the PSB rebate. This info sheet only applies to qualifying NPOs that are resident in 2 or more provinces, at least 1 of which is a participating province.

For example, you may be:

• a qualifying NPO that is resident only in New Brunswick and Nova Scotia;
• a qualifying NPO that is resident only in Manitoba, Ontario, and Quebec; or
• a qualifying NPO that is resident in every province and territory.

To determine in which provinces 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.

This information will be used in Step 8 and Step 9.

If you are a qualifying NPO that is not a selected PSB and you are resident in 2 or more provinces, at least 1 of which is a participating province, go to Step 4.

How to calculate your PSB rebate amount for line 306 on Form GST66

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%) 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 items^{Footnote 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; 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 during that claim period 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 during that claim period 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; and
• 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 HST paid or payable on each eligible purchase or expense, and multiply this amount by the fraction 5/15.

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 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, refer to Guide RC4034.

How to calculate your PSB rebate amount for the applicable line 306 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 during that claim period 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 during that claim period 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; and
• 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 HST paid or payable on each eligible purchase or expense, and multiply this amount by the fraction 10/15.

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.

Each of these amounts will be used in Step 9 to calculate the PSB rebate of the provincial part of the HST.

Step 8 – Determine the extent to which you intended to consume, use, or supply each eligible purchase and expense in each province in which you are resident

Unlike the calculation of the PSB rebate of the GST and/or the federal part of the HST, you must calculate your PSB rebate of the provincial part of the HST based on the extent you intended to use^{Footnote 3} each eligible purchase and expense in the course of your activities in each participating province in which you are resident.

To determine the extent to which you intended to use each eligible purchase and expense in each province in which you are resident, do the following:

• list your eligible purchases and expenses on which you paid HST; and
• record the extent (expressed as a percentage) to which you intended, at the relevant time^{Footnote 4}, to use each eligible purchase or expense in the course of your activities in each province in which you are resident and outside the provinces in which you are resident.

You cannot claim a PSB rebate of the provincial part of the HST paid or payable on eligible purchases and expenses to the extent that you intend to use the purchase or expense in the course of your activities in a non-participating province or in a province in which you are not resident.

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

In this step, you calculate your PSB rebate of the provincial part of the HST for each participating province in which you are resident (as determined in Step 3). To do this calculation, you first need the applicable provincial PSB rebate factor for each participating province in which you are resident. Those rates are indicated in the following table:

Then, do the following calculations for each participating province in which you are resident:

• multiply the applicable PSB rebate factor for the participating province in which you are resident by the provincial non-creditable HST charged for each eligible purchase and expense (determined in Step 7); and

• then multiply that amount by the extent (expressed as a percentage) that you intended to use that eligible purchase or expense in the course of your activities in that participating province (determined in Step 8).

The result of this calculation is your PSB rebate of the provincial part of the HST paid or payable on each eligible purchase and expense.

• Add the amounts of the PSB rebate of the provincial part of the HST paid or payable on all of the eligible purchases and expenses. This is your total PSB rebate of the provincial part of the HST for that participating province; and
• enter the total PSB rebate amount for that participating province on the applicable line 306 of Form RC7066-SCH, as shown on the table below:

Repeat the above instructions in Step 9 for each participating province in which you are resident.

For a full explanation of how to complete the rest of Form RC7066-SCH and Form GST66, refer to Guide RC4034.

Further information