Excise and GST/HST News - No. 109
Table of Contents
- Federal Budget 2021
- GST/HST relief for face masks and face shields
- GST/HST measures relating to the digital economy
- Public service bodies’ rebate and COVID-19 relief measures
- Zomaron Inc. v The Queen – Application to independent sales organizations and member service providers
- Validating the Status Card of Qalipu Mi'kmaq First Nation Members
- Bill S‑3 Amendments to the Indian Act to resolve known gender-based inequities – GST/HST implications
- Excise duty rate adjustments – April 1 and April 20, 2021
- Fuel charge rate adjustments – April 1, 2021 reminder
- New online filing options for form GST524, GST/HST New Residential Rental Property Rebate Application
- New online filing options for Form GST495, Rebate Application for Provincial Part of Harmonized Sales Tax (HST)
- Prescribed rates of interest
- What’s new in publications
- Contact us
Federal Budget 2021
On April 19, 2021, the Minister of Finance tabled Budget 2021 which proposed to amend the Excise Tax Act and the Excise Act, 2001, and also confirmed the Government’s intention to proceed with certain previously announced measures relating to the GST/HST. Refer to the April 19, 2021, Department of Finance News Release for related information.
Many of these amendments are included in Bill C-30, Budget Implementation Act, 2021, No. 1, which received third reading on June 23, 2021. Bill C-30 contains legislation for the GST New Housing Rebate Condition and excise duty increase on tobacco measures announced in Budget 2021, Personal Protective Equipment and E-commerce measures announced in the Fall Economic Statement 2020 and amendments included in the May 2019 News Release (definition of freight transportation service, drop shipment rules, virtual currency and holding corporation rules).
Below is a list of the proposed GST/HST and excise duty measures:
- Personal protective equipment
- Cross-border digital products and services
- Goods supplied through fulfillment warehouses in Canada
- Platform-based short-term accommodation
- GST new housing rebate conditions
- GST/HST holding corporation rules
- Definition of freight transportation service
- Drop-shipment rules
- Treating virtual currency as a financial instrument
Excise duty measure
- Excise duty on tobacco
In addition, Bill C-30 also includes legislation related to electronic delivery of requirements for information announced in Budget 2019, which includes amendments to the Income Tax Act, the Excise Tax Act (both GST and non-GST portions), the Air Travellers Security Charge Act, the Excise Act, 2001 and the Greenhouse Gas Pollution Pricing Act.
More detailed information on the GST/HST and excise duty proposed amendments is discussed in the following articles.
GST/HST relief for face masks and face shields
On November 30, 2020, the Government of Canada announced a proposed measure to relieve certain products from the GST/HST.
The announcement proposes to amend the Excise Tax Act to temporarily remove the GST/HST on certain supplies of face masks, respirators and face shields that are made after December 6, 2020, by making them zero-rated (taxed at 0%) for GST/HST purposes. Imports of these face masks and face shields after December 6, 2020, would also be non-taxable for GST/HST purposes.
The following products are proposed to be relieved of the GST/HST:
- Face masks or respirators that are designed for human use and that are authorized for medical use in Canada.
- Face masks or respirators that meet or exceed N95, KN95 or equivalent certification requirements, that are designed for human use and that do not have an exhalation valve or vent.
- Face masks or respirators that:
- are designed for human use;
- are made of multiple layers of dense material, but may have a portion in front of the lips made of transparent and impermeable material that permits lip reading provided that there is a tight seal between the transparent material and the rest of the face mask or respirator;
- are large enough to completely cover the nose, mouth and chin without gaping;
- have ear loops, ties or straps for securing the face mask or respirator to the head;
- are for use in preventing the transmission of infectious agents such as respiratory viruses; and
- do not have an exhalation valve or vent.
- Face shields that are designed for human use, have a transparent and impermeable window or visor, cover the entire face and have a head strap or cap for holding them in place (but not including face shields specifically designed or marketed for a use other than preventing the transmission of infectious agents such as respiratory viruses).
- Prescribed face masks, respirators or shields (none are prescribed at this time).
The proposed measure would zero-rate supplies of face masks, respirators and face shields as described above. Zero-rated means that no GST/HST is charged when the product is sold, as the tax rate is 0%. However, a GST/HST registrant can claim an input tax credit for the GST/HST paid or payable on expenses made to provide zero-rated supplies.
For more information, refer to FAQ - GST/HST Relief for Face Masks and Face Shields available on the Canada.ca website.
GST/HST measures relating to the digital economy
On November 30, 2020, the Government of Canada announced three proposed GST/HST measures relating to the digital economy that are proposed to become effective July 1, 2021. The three GST/HST measures in the announcement relate to:
- cross-border digital products and cross-border services;
- goods supplied through fulfillment warehouses in Canada; and
- platform-based short-term accommodation.
Following consultations with stakeholders, amendments to the proposed measures were announced on April 19, 2021, as part of Budget 2021.
Cross-border digital products and cross-border services
Under this proposed measure, non-resident vendors supplying digital products or services (such as online subscription-based video streaming and including traditional services such as legal and accounting services) to consumers in Canada would generally be required to register for the GST/HST and to collect and remit the tax on their taxable supplies to Canadian consumers.
Distribution platform operators would generally be required to register for the GST/HST and to collect and remit the tax on the supplies of digital products and services (such as mobile apps) made by non-resident vendors to Canadian consumers that these digital platforms facilitate.
Generally, under the proposed measure a simplified GST/HST registration and remittance framework would be available to non-resident vendors and non-resident distribution platform operators that are required to register and collect the GST/HST under this proposed measure.
Goods supplied through fulfillment warehouses in Canada
Under this proposed measure, distribution platform operators would be required to register under the normal GST/HST rules and to collect and remit the GST/HST in respect of sales of goods that are located in fulfillment warehouses in Canada (or shipped from a place in Canada to a purchaser in Canada) when those sales are made by non-registered vendors through distribution platforms.
Non-resident vendors would be required to register under the normal GST/HST rules and to collect and remit the GST/HST in respect of sales of goods that are located in fulfillment warehouses in Canada (or shipped from a place in Canada to a purchaser in Canada) when those sales are made by the non-resident vendors on their own (that is, they are not made through a distribution platform).
Platform-based short-term accommodation
Under this proposed measure, the GST/HST would apply on all supplies of short-term accommodation in Canada facilitated through accommodation platforms.
The GST/HST would be required to be collected and remitted on short-term accommodations supplied in Canada through an accommodation platform by either the property owner or the accommodation platform operator. Non-resident accommodation platform operators that are not carrying on business in Canada would be able to use a simplified GST/HST registration and remittance framework.
Affected businesses and platform operators are expected to comply with their obligations to register, collect and remit the GST/HST as set out under the new rules and legislative provisions to ensure that the GST/HST applies effectively and fairly to e-commerce transactions. However, as part of Budget 2021, the Department of Finance announced that the Canada Revenue Agency (CRA) will work closely with such businesses and operators to assist them in meeting their obligations.
Where the affected businesses and platform operators show that they have taken reasonable measures to comply but are unable to meet their new obligations for operational reasons, the CRA will take a practical approach to compliance and exercise discretion in administering these measures during a 12-month transition period, starting July 1, 2021.
For more information on these proposed measures, go to GST/HST for digital economy businesses and FAQ - Application of the GST/HST in relation to electronic commerce supplies. The CRA is committed to providing taxpayers with up-to-date information and will be releasing more detailed information regarding the proposed measures in the near future. Persons seeking additional technical information regarding the proposed measures can contact the CRA.
Canada and the U.S.: 1‑833‑585‑1463 (toll-free)
Elsewhere: 613‑221‑3154 (collect calls are accepted)
Public service bodies’ rebate and COVID-19 relief measures
Since the beginning of the COVID-19 pandemic, the federal government and provincial governments have implemented several COVID-19 emergency relief measures. Non-profit organizations (NPOs) may be eligible for some of these measures. For information on how the GST/HST applies to non-profit organizations, refer to Guide RC4081, GST/HST Information for Non-Profit Organizations.
A qualifying NPO may claim a public service bodies’ (PSB) rebate of the GST/HST paid or payable on eligible purchases and expenses for which it cannot claim an input tax credit or other rebate, refund, or remission of tax. For more information, refer to Guide RC4034, GST/HST Public Service Bodies’ Rebate.
The emergency relief measures may impact an NPO’s entitlement to a PSB rebate. Information about how the relief measures may impact a non-profit organization is set out below.
Qualifying non-profit organization
Generally, an NPO is a qualifying NPO for a fiscal year if its percentage of government funding for the fiscal year, or for the previous two fiscal years, is at least 40%.
Percentage of government funding
The expression percentage of government funding is relevant in determining whether an NPO is a qualifying NPO and therefore eligible for a PSB rebate. The percentage of government funding must be at least 40%. The precise calculation of an NPO’s percentage of government funding for this purpose is set out in section 3 of the Public Service Body Rebate (GST/HST) Regulations (the Regulations).
In general terms, the percentage of government funding calculation is as follows:
(government funding ÷ total revenue) × 100
The details of each COVID-19 relief measure are different. For example, a relief measure may be governed by specific federal or provincial legislation. Therefore, some payments may be included in an NPO’s percentage of government funding calculation, while others may not.
To calculate its percentage of government funding, the NPO first must know the amount of:
- its government funding for a fiscal year; and
- its total revenue for a fiscal year.
What qualifies as government funding?
Government funding in the percentage of government funding calculation does not necessarily include all amounts paid to the NPO by a government. Government funding, for the purpose of this calculation, refers to an amount of money (including a forgivable loan) that is easily measurable, identified as government funding in the non-profit organization’s financial statements and is paid by a grantor:
- to support or promote the NPO’s objectives but not to pay for property or services supplied by the NPO to the grantor; or
- for an exempt supply of property or services made by the NPO, if the property and services are not for the use or consumption of the grantor or persons related to the grantor (for example, government funding of a local health unit to supply medical services to the public).
- the federal government, provincial governments, and municipalities, not including federal and provincial Crown corporations and municipal corporations, all or substantially all of whose activities are commercial activities, the supply of financial services, or any combination of the two;
- a corporation that is controlled by a government or by a municipality and one of its main purposes is to fund charitable or non-profit activities;
- a trust, board, commission, or other body that is established by a government, municipality, or corporation described in the previous bullet, and one of its main purposes is to fund charitable or non-profit activities; and
- an Indian band.Footnote 1
Government funding can be paid directly to the NPO by a grantor or through another organization called an intermediary. Amounts from an intermediary are government funding when:
- the intermediary received the amounts from a grantor or from another organization that received the amounts directly from a grantor;
- the amounts do not pass through more than two intermediaries;
- the amounts are clearly identified as government funding in the NPO’s financial statements;
- the intermediary that paid the amount to the NPO completes Form GST322, Certificate of Government Funding, to confirm that the amounts are government funding;
- the amounts would be considered government funding if they were paid by a grantor directly to the NPO for the same purpose as they were paid to the NPO by the intermediary; and
- if the amounts are paid to the NPO for an exempt supply of property or services, the property and services are not for the use or consumption of the grantor, the intermediary, or persons related to the grantor or intermediary.
Government funding does not include:
- indirect or non-financial forms of assistance;
- low-interest loans and loan guarantees;
- property or services supplied at a subsidized price; and
- a refund, rebate, or remission of, or credit in respect of taxes, duties, or fees imposed under any statute.
Amounts paid to an NPO by a person that is not a grantor, such as a forgivable loan paid by a financial institution, are not government funding unless the payment satisfies all the conditions for government funding paid through an intermediary as described above.
What amounts are included in total revenue?
For the purpose of the percentage of government funding calculation, total revenue only includes the following specific amounts:
- government funding as explained above;
- income from investments (interest and dividends);
- non-capital distributions from a trust to the NPO;
- loans from people with whom the NPO is not dealing at arm’s length (for example, an NPO funds another related NPO through loans with unusually low interest rates). If the loans are later reimbursed, they will be deducted from revenue at that time;
- proceeds from the issuance of equity securities; and
- monetary capital contributions (for example, the raising of capital by an NPO that cannot issue shares).
Each of the following are also included in total revenue, but the NPO can deduct 25% of each amount to take into account the cost of fundraising:
- a monetary gift that is not government funding (such as a private gift or donation);
- the amount by which the fair market value of a financial instrument received by the NPO is more than the consideration paid or payable for the instrument;
- the receipts from a sponsorship;
- the consideration for a taxable (including zero-rated) or exempt sale of goods and services (other than the sale of real property or capital property, the sale of a financial instrument, benefits granted to employees or shareholders, or a sale the NPO is deemed to make when the NPO stops being a registrant); and
- the proceeds from gambling activities, minus prizes and winnings paid out.
The NPO should record ongoing revenue, such as sales, membership fees, or revenue items for activities extending over a number of years, when it receives them or when they become receivable, whichever is earlier.
The NPO must deduct from the total any amounts the NPO repaid during the year. The result is total revenue for the purpose of the percentage of government funding calculation.
The main purpose of an NPO is to put on an annual arts festival. Because of the COVID-19 pandemic, the live festival had to be cancelled in 2020. The NPO received a $5,000 grant from a provincial government to assist the NPO in creating a virtual version of the festival. The payment is not consideration for a supply of property or services by the NPO. The provincial government is a grantor and the grant was paid for the purpose of financially assisting the NPO in carrying out its purpose of putting on the arts festival and not as consideration for a supply. Therefore, the $5,000 received from the provincial government is government funding and is also included in total revenue in the percentage of government funding calculation.
An NPO applies for the Canada Emergency Wage Subsidy (CEWS) and receives the subsidy directly from the CRA. The purpose of the CEWS is to enable businesses to re-hire workers previously laid off as a result of COVID-19, help prevent further job losses, and better position businesses to resume normal operations following the crisis. In this case, the federal government is a grantor; however, the CEWS is not included in the percentage of government funding calculation.
Although the CEWS is considered government assistance for income tax purposes and must be included in computing taxable income, the CEWS is not government funding for determining the NPO’s percentage of government funding.
The definition of government funding excludes a refund, rebate, or remission of, or credit in respect of, taxes imposed under any statute. Under the Income Tax Act (ITA), the CEWS takes the form of a deemed overpayment of liability under Part I of the ITA by an eligible entity, which is then refunded to the eligible entity. The Minister of National Revenue has statutory authority under the ITA to refund the deemed overpayment. Therefore, the CEWS is a refund of taxes imposed under the ITA and excluded from the definition of government funding. Furthermore, the CEWS is not paid for the purpose of financially assisting NPOs in carrying out its purpose. As such, the CEWS is not included in the government funding amount in the percentage of government funding calculation.
In addition, the CEWS is not included in the total revenue amount in the percentage of government funding calculation. The CEWS is not a gift, because it is a statutory obligation under the ITA for the Minister to refund the deemed overpayment to eligible CEWS applicants. Therefore, the CEWS will have no impact on the percentage of government funding calculation, as it is not included in the numerator or the denominator.
For more information on how to calculate an NPO’s percentage of government funding and determine its eligibility for the PSB rebate, refer to Guide RC4034, GST/HST Public Service Bodies Rebate, in particular the section entitled “Claiming a rebate as a qualifying non-profit organization”, and Form GST523-1, Non-profit Organizations - Government Funding, both available on the CRA website.
Zomaron Inc. v The Queen – Application to independent sales organizations and member service providers
The Tax Court of Canada (TCC) delivered its decision in Zomaron Inc. v. The Queen, 2020 TCC 35, on February 28, 2020. The appellant, Zomaron Inc. (Zomaron), provided services to two companies involved in the credit and debit card payment processing industry. These companies (referred to as acquirers or processors) provide merchants with payment processing services for credit and debit card transactions accepted by merchants for goods and services sold by the merchants to customers.
Zomaron was a registered independent sales organization (ISO) for the purposes of the Visa network and a member service provider (MSP) for the purposes of the Mastercard network. ISOs/MSPs are registered with Visa or Mastercard and must comply with various rules and regulations, including the payment network regulations established by these credit brands. Zomaron was primarily responsible for seeking out prospective merchants to receive card payment services provided by the acquirers/processors, and negotiating with the prospective merchants the rates and fees (and, in some circumstances, certain terms and conditions) of such card payment services to the extent provided in merchant application forms. The merchant application forms were submitted to the acquirers/processors. Once approved by the acquirer/processor, the merchant became contractually bound to the acquirer/processor according to the terms negotiated in the merchant application form and the terms and conditions included by reference.
The TCC concluded that Zomaron was making a single compound supply of all the services provided to the acquirer/processor. The TCC outlined that the evidence revealed that during negotiations Zomaron had considerable latitude and autonomy to set pricing, rates and fees and did that within a complex pricing structure. Zomaron could also negotiate some terms and conditions. The TCC also indicated that it was obvious, based on the evidence, that Zomaron had to look at multiple factors and features during the negotiating process that would ultimately impact and bind the acquirer/processor if the acquirer/processor accepted the merchants after conducting credit worthiness and risk analysis. The TCC determined that Zomaron delivered to the acquirer/processor fully negotiated merchants requiring card payment processing services. Card payment processing services are generally considered to be financial services. The TCC determined the predominant element in respect of this single supply to be “arranging for” the card payment processing services offered by the acquirer/processor to the merchants and that this “arranging for” activity was a financial service as defined in subsection 123(1) of the Excise Tax Act as it was described by paragraph (l) of the definition. As a result, the supplies made by Zomaron were GST/HST exempt.
A number of entities perform different activities within the credit and debit card payment processing industry. Although a supplier may be registered as an ISO/MSP within the Visa/Mastercard networks, the supplier may not always perform the very same services and have the very same obligations and autonomy as another ISO/MSP. In this regard, each arrangement must be considered on a case-by-case basis to determine if the same fact situation as Zomaron exists. The CRA will only apply the Zomaron decision to supplies made by an ISO/MSP if the same fact situation exists.
Validating the Status Card of Qalipu Mi'kmaq First Nation Members
GST/HST Technical Information Bulletin B-039, GST/HST Administrative Policy – Application of the GST/HST to Indians, summarizes the CRA’s tax relief policy for Indians.Footnote 1 The treatment of purchases made by an Indian under the GST/HST is consistent with section 87 of the Indian Act under which the personal property of an Indian or an Indian band situated on a reserve, and their interests in reserve or surrendered lands, are not subject to tax. B-039 does not apply to individuals who are not registered under the Indian Act.
The Qalipu Mi'kmaq First Nation was established in 2011 as a landless band and individuals listed on its Founding Members List were registered as Indians under the Indian Act. As a result of changes made to the Founding Members List, approximately 7,600 individuals were removed from the Indian Register as of August 31, 2018, and are no longer eligible to be registered as an Indian under the Indian Act. The status cards issued to and held by these individuals have been revoked and are no longer valid.
The CRA does not determine whether a particular person qualifies to be registered as an Indian under the Indian Act; such decisions are the responsibility of Indigenous Services Canada (ISC). ISC maintains an automated telephone service that can be used to confirm whether a status card is valid. The phone number is 1-877-VALIDE8 (1-877-825-4338) and is listed on the back of the status card.
To confirm that an individual is entitled to tax relief as explained in B-039, vendors are expected to request to see a status card or original Temporary Confirmation of Registration Document. In addition to this, in the case of members of the Qalipu Mi'kmaq First Nation (band number 034), vendors will also need to make sure that the card is still valid as the individual presenting the card may no longer be registered under the Indian Act. The requirement for vendors to retain adequate evidence with respect to their tax relieved sales, as explained in B-039, still remains.
Validating a Qalipu Mi'kmaq First Nation member’s status card will make sure that registrant vendors are not liable for tax that should have been collected from an individual that is not registered under the Indian Act. Further information can be found in GST/HST Notice 314, Amended Qalipu Mi'kmaq First Nation’s Founding Members List.
Bill S‑3 Amendments to the Indian Act to resolve known gender-based inequities – GST/HST implications
Bill S‑3, An Act to amend the Indian Act in response to the Superior Court of Quebec decision in Descheneaux c. Canada (Procureur général), received Royal Assent on December 12, 2017. This Act addresses known gender-based inequities in the Indian Act and entitles persons who were affected by those inequities to register as IndiansFootnote 1 under the Indian Act. As of August 15, 2019, all of the amendments under Bill S‑3, including the removal of the 1951 cut-off date, are in force. This resulted in the elimination of all known gender-based inequities in the Indian Act. Preliminary projections completed by Indigenous Services Canada (ISC) estimate that between 28,000 and 35,000 individuals will become entitled to register under the Indian Act following the legislative amendments introduced by Bill S‑3.
As proof of registration under the Indian Act is required in order for GST/HST relief to apply, relief is not available to an individual who is entitled to become registered under the Indian Act if they have not yet completed the registration process with ISC. Individuals registered as Indians as a result of Bill S-3, as well as other newly registered Indians, receive a Temporary Confirmation of Registration Document (TCRD) from ISC.
Following the issuance of a TCRD, each qualifying applicant will receive a status card (secure status card) which may take several months to be processed. Information on the registration process and how to apply for a secure status card can be found on ISC’s website.
Tax relief available to Indians
The CRA’s general policy with respect to GST/HST relief on supplies of property and services made to Indians is provided in GST/HST Technical Information Bulletin B-039, GST/HST Administrative Policy – Application of the GST/HST to Indians. The conditions in B-039 must be met in order for a vendor to provide tax relief when making supplies of property or services to an Indian.
One of these conditions is that the vendor must keep adequate evidence that the supply for which no GST/HST was payable was made to an Indian. The Indian would show their status card to the vendor, and the vendor would make a notation on the invoice, or other sales document that is retained by the vendor, of the registry number or the band name and family number found on the card. The CRA also accepts the original TCRD issued to Indians by ISC as sufficient documentary evidence when making sales to Indians.
Information on TCRDs, expired TCRDs and photocopies of TCRDs in special circumstances can be found in GST/HST Notice 264, Sales Made to Indians and Documentary Evidence - Temporary Confirmation of Registration Document.
For sales made to Indians by telephone, Internet or other electronic means, a copy of the TCRD is acceptable as sufficient documentary evidence. For more information, refer to GST/HST Info Sheet GI‑127, Documentary Evidence when Making Tax-Relieved Sales to Indians and Indian Bands over the Telephone, Internet or Other Electronic Means.
Excise duty rate adjustments – April 1 and April 20, 2021
Under the Excise Act, 2001 and the Excise Act, inflationary adjustments are made on April 1 of each year to certain excise duty rates. The most recent adjustment occurred on April 1, 2021. In addition, on April 19, 2021, the Minister of Finance tabled Budget 2021 and an accompanying Notice of Ways and Means Motion proposing amendments to the Excise Act, 2001 that increase excise duty on tobacco products effective April 20, 2021. The Excise duty rates web page lists all the current and historical rates.
Excise Act, 2001
Spirits and wine
The adjusted rates of excise duty payable on spirits and wine on or after April 1, 2021, are set out in Excise Duty Notice EDN67, Adjusted Rates of Excise Duty on Spirits and Wine Effective April 1, 2021. This annual adjustment does not apply to the rate of special duty on spirits.
The adjusted rates of excise duty payable on tobacco products from April 1, 2021 to April 19, 2021 inclusive, are provided in Excise Duty Notice EDN68, Adjusted Rates of Excise Duty on Tobacco Products Effective April 1, 2021. The proposed increased rates of excise duty payable on tobacco products on or after April 20, 2021, are provided in Excise Duty Notice EDN70, Budget 2021 – Changes to Excise Duty Rates on Tobacco Products. The rate changes do not apply to the excise duty rate on raw leaf tobacco or to the special duty rates on stamped tobacco products.
Cigarette inventory tax
In addition to the April 1 and April 20, 2021 rate changes, an inventory tax applies to the following cigarettes that were held in inventory at 12:01 a.m. on each of April 1, 2021 and April 20, 2021:
- cigarettes on which excise duty has been paid as indicated by Duty Paid Canada Droit Acquitté on the affixed tobacco stamp; and
- imported unstamped cigarettes on which special duty was paid by a duty-free shop.
Excise Duty Notice EDN69, Cigarette Inventory Tax on April 1, 2021, provides more information on the April 1, 2021 cigarette inventory tax, while Excise Duty Notice EDN71, Budget 2021 – Cigarette Inventory Tax on April 20, 2021, provides more information on the April 20, 2021 cigarette inventory tax.
The adjusted rates of excise duty payable on beer on or after April 1, 2021, are provided in Excise Duty Notice EDBN28, Adjusted Rates of Excise Duty on Beer Effective April 1, 2021.
Fuel charge rate adjustments – April 1, 2021 reminder
Under the Greenhouse Gas Pollution Pricing Act, fuel charge rates increase April 1 of each year through 2022. The most recent adjustment occurred on April 1, 2021. The fuel charge rates are available on the Fuel Charge Rates web page.
New online filing options for form GST524, GST/HST New Residential Rental Property Rebate Application
Form GST524, GST/HST New Residential Rental Property Rebate Application, allows individuals and businesses to claim a rebate of some of the GST/HST related to the new construction or substantial renovation of residential rental properties, the conversion of commercial properties to residential rental properties, and the lease of land for residential purposes. Effective October 19, 2020, you can use My Account or My Business Account to file a new residential rental property rebate claim online. The service will also be available to authorized representatives who have “level 2”, “level 3”, or “legal representative” authorization using Represent A Client.
The option to file the GST524 will be added to the main page of your My Account profile under Related Services – File a GST/HST rebate. Your My Business Account profile will have the option available by selecting File a Rebate under the GST/HST program area.
For complete details and information on all eligibility requirements, refer to Guide RC4231, GST/HST New Residential Rental Property Rebate, or go to Claim a GST/HST rebate. To log in or register for the CRA’s digital services, go to My Account, My Business Account or Represent A Client.
New online filing options for Form GST495, Rebate Application for Provincial Part of Harmonized Sales Tax (HST)
Form GST495, Rebate Application for Provincial Part of Harmonized Sales Tax (HST), allows individuals, and in certain situations businesses, to claim a rebate of the provincial part of the HST they paid on eligible goods and specified motor vehicles that were bought in a participating province and were brought into a non-participating province or a participating province with a lower HST rate. Effective October 19, 2020, you can use My Account or My Business Account to file this rebate online. The service will also be available to authorized representatives who have “level 2”, “level 3”, or “legal representative” authorization using Represent A Client.
The option to file the GST495 will be added to the main page of your My Account profile under Related Services – File a GST/HST rebate. Your My Business Account profile will have the option available by selecting File a Rebate under the GST/HST program area.
For complete details and information on all eligibility requirements refer to Form GST495, Rebate Application for Provincial Part of Harmonized Sales Tax (HST), or go to Claim a GST/HST Rebate. To log in or register for the CRA’s digital services, go to My Account, My Business Account or Represent A Client.
Prescribed rates of interest
The prescribed annual rate of interest in effect from April 1, 2021 to June 30, 2021 on overdue amounts payable to the Minister is 5%. The prescribed annual rate of interest on amounts owed by the Minister (such as, rebates or refunds) is 1% for corporate taxpayers and 3% for non-corporate taxpayers. These rates are applicable to income tax, excise tax, the GST/HST, the air travellers security charge (ATSC), the fuel charge (under the Greenhouse Gas Pollution Pricing Act) and excise duty on wine, spirits, tobacco and cannabis.
The prescribed annual rate of interest respecting excise duty on beer, on overdue amounts payable for the indicated period, is set at 3%. Refund interest rates are not applicable for amounts owed by the Minister (such as, rebates or refunds) for excise duty that is in relation to beer.
|PERIOD||April 1, 2021 to
June 30, 2021
|January 1, 2021 to
March 31, 2021
|October 1, 2020 to
December 31, 2020
|July 1, 2020 to
September 30, 2021
|Arrears and instalment interest||5%||5%||5%||5%|
|PERIOD||April 1, 2021
June 30, 2021
|January 1, 2021
March 31, 2021
|October 1, 2020
December 31, 2020
|July 1, 2020
September 30, 2020
|Arrears interest excise duty - beer||3%||3%||3%||3%|
Prescribed interest rates for previous years are available on Canada.ca at Prescribed interest rates.
What’s new in publications
The following is a list of new or revised Excise and GST/HST forms and publications:
- GST27 Election or Revocation of an Election to Deem Certain Supplies to be Financial Services for GST/HST Purposes
- GST44 GST/HST Election Concerning the Acquisition of a Business or Part of a Business
- GST115 GST/HST Rebate Application for Tour Packages
- GST116 Application, Renewal, or Revocation of the Authorization for a Qualifying Institution to Use Particular Input Tax Credit Allocation Methods
- GST189 General Application for GST/HST Rebates
- GST190 GST/HST New Housing Rebate Application for Houses Purchased from a Builder
- GST190A GST/HST New Housing Rebate - Appendix A (for use by the claimant’s legal representative only)
- GST288 Supplement to Forms GST189 and GST498
- GST303 Application to Offset Taxes by Refunds or Rebates
- GST386 Rebate Application for Conventions
- GST494 GST/HST Final Return for Selected Listed Financial Institutions
- GST495 Rebate Application for Provincial Part of Harmonized Sales Tax (HST)
- GST498 GST/HST Rebate Application For Foreign Representatives, Diplomatic Missions, Consular Posts, International Organizations, Or Visiting Forces Units
- GST518 GST/HST Specially Equipped Motor Vehicle Rebate Application
- GST524 GST/HST New Residential Rental Property Rebate Application
- GST525 Supplement to the New Residential Rental Property Rebate Application - Co-op and Multiple Units
- RC4522 Election or Revocation for a Qualifying Institution to Use Particular Methods Specified in an Application Under Subsection 141.02(18)
- RC4601 GST/HST Reporting Entity Election or Notice of Revocation for a Selected Listed Financial Institution
- RC4615 Election or Revocation of the Election to Not Account for GST/HST on Actual Taxable Supplies
- RC4618 Election or Revocation of an Election for GST/HST Purposes to Designate a Pension Entity in Respect of a Master Pension Entity
- RC7201 Reporting Entity Election or Notice of Revocation for a Selected Listed Financial
- RC7215 Elections or Revocation of the Elections to Not Account for GST/HST and QST on Actual Taxable Supplies for Participating Employers that are Selected Listed Financial Institutions
- RC7216 Application, Renewal, or Revocation of the Authorization for a Qualifying Institution that is a Selected Listed Financial Institution to Use Particular Input Tax Credit Allocation Methods
- RC7218 Elections or Revocation of Elections for GST/HST and/or QST Purposes to Designate a Pension Entity that is a Selected Listed Financial Institution in Respect of a Master Pension Entity
- RC7222 Election or Revocation for a Qualifying Institution that is a Selected Listed Financial Institution to Use Particular Methods Specified in an Application Under Subsection 141.02(18) of the ETA for GST/HST and QST Purposes
- RC7227 Elections or Revocation of the Elections to Deem Certain Supplies to be Financial Services for GST/HST and QST Purposes for Selected Listed Financial Institutions
- RC7288 Selected Listed Financial Institution - Request for Taxpayer Relief - Cancel or Waive Penalties or Interest Related to the GST/HST or the QST, or Charges Related to the QST
- RC7289 General Application for GST/HST and QST Rebates for Selected Listed Financial Institutions
- RC7294 GST/HST and QST Final Return for Selected Listed Financial Institutions
- 1-4 Excise and GST/HST Rulings and Interpretations Service (revised)
- 13-5 Non-creditable Tax Charged
GST/HST technical information bulletins
- RC4028 GST/HST New Housing Rebate
- RC4034 GST/HST Public Service Bodies’ Rebate
- RC4050 GST/HST Information for Selected Listed Financial Institutions
- RC4060 Farming Income and the AgriStability and AgriInvest Programs Guide 2020
- RC4064 Disability-Related Information - 2020
- RC4065 Medical Expenses - 2020
- RC4231 GST/HST New Residential Rental Property Rebate
- RC4408 Farming Income and the AgriStability and AgriInvest Programs Harmonized Guide 2020
- B200 Excise Tax Return
- B241 Excise Tax Return - Broker
- B243 Excise Tax Return - Insured
- B249 Air Travellers Security Charge Return
- B254 Air Travellers Security Charge Act Application for Refund
- B256 Excise Act, 2001 - Application for Refund
- B261 Excise Duty Return - Duty Free Shop
- B262 Excise Duty Return - Excise Warehouse Licensee
- B263 Excise Duty Return - Licensed User
- B264 Excise Duty Return - Special Excise Warehouse Licensee
- B265 Excise Duty Return - Wine Licensee
- B266 Excise Duty Return - Spirits Licensee
- B270 Excise Act 2001 - Excise Duty Return - Non-Licensee
- B273 Excise Return - Cigarette Inventory Tax
- B284 Election or Revocation of the Election for Semi-Annual Reporting
- E681 Excise Act, 2001 - Refund Claim of Tax on Exported Tobacco Products
- K50B Excise Duty Return - Brewer
- N10 Excise Act - Application for Refund/Drawback
- N15 Excise Tax Act - Application for Refund/Rebate
- RC565 Federal Excise Tax Exemption Certificate For Immediate Export Of Fuel
- RC633 Beer Revenue Worksheet
- RC634 Beer Credit Claim Worksheet
- XE8 Excise Tax Act – Application for Refund of Federal Excise Tax on Gasoline
- EDBN28 Adjusted Rates of Excise Duty on Beer Effective April 1, 2021
- EDN67 Adjusted Rates of Excise Duty on Spirits and Wine Effective April 1, 2021
- EDN68 Adjusted Rates of Excise Duty on Tobacco Products Effective April 1, 2021
- EDN69 Cigarette Inventory Tax on April 1, 2021
- EDN70 Budget 2021 – Changes to Excise Duty Rates on Tobacco Products
- EDN71 Budget 2021 – Cigarette Inventory Tax on April 20, 2021
- ETSL79 Application of the Excise Tax to Fuel Sold in Canada for Immediate Export
Fuel charge forms
Fuel charge notices
All GST/HST, excise duty, and excise taxes and special levies publications can be found on the Canada.ca website. Go to the GST/HST technical information, Excise duties technical information and Excise taxes and other levies technical information web pages.
To receive email notification as soon as a document is published on the CRA website, go to Canada Revenue Agency electronic mailing lists and subscribe to the RSS feed for all new CRA publications and forms, or subscribe to any number of mailing lists for different types of publications.
Forms and publications
- All GST/HST technical publications and GST/HST related forms are available on the Canada.ca website. Go to GST/HST related forms and publications.
- To access all other forms and publications on the CRA website go to Forms and publications.
- To order forms and publications by telephone, call 1‑800‑959‑5525.
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 - 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.
Go to the Contact Information – Excise Duties, Excise Taxes, Fuel Charge and Air Travellers Security Charge webpage for technical enquiries, publications and forms, and regional office contact information.
For general information and to make enquiries regarding your account, you can:
- view answers to common enquiries, or submit an enquiry using the online “Enquiries service” on “My Business Account”;
- view account information online at E-services for Businesses; or
- call Business Enquiries at 1‑800‑959‑5525.
For online access to your GST/HST, air travellers security charge, excise tax and duty accounts (such as viewing up-to-date account balances and transactions, transferring payments and more), go to:
- My Business Account if you are the business owner.
- Represent a Client if you are an authorized representative or employee; or
For enquiries regarding the status of specific GST/HST domestic rebate claims, call Business Enquiries at 1‑800‑959‑5525.
For technical support using our online services:
- business accounts, call 1‑800‑959‑5525
- teletypewriter users, call 1‑800‑665‑0354
- calls outside of Canada and the United States, call collect at 613‑940‑8497
Please have the screen number (bottom right) and, if applicable, the error number and message received on hand when calling.
The Excise and GST/HST News is published quarterly and highlights recent developments in the administration of the GST/HST, the QST for SLFIs, First Nations goods and services tax (FNGST) and First Nations tax (FNT), air travellers security charge (ATSC) as well as excise taxes and duties. If you would like to receive a link to each new edition of the Excise and GST/HST News as it is published, subscribe to the electronic mailing list.
This publication is provided for information purposes only and does not replace the law, either enacted or proposed. Please note that any commentary in this newsletter regarding proposed measures should not be taken as a statement by the CRA that such measures will in fact be enacted into law in their current form. Comments or suggestions about the newsletter should be sent to the Editor, Excise and GST/HST News, Excise and GST/HST Rulings Directorate, Legislative Policy and Regulatory Affairs Branch, CRA, 11th Floor, Place de Ville, 320 Queen Street, Ottawa K1A 0L5.
Report a problem or mistake on this page
- Date modified: