General GST/HST rebate application


Find out which GST/HST rebate may be available to you

Use the following sections to determine if you are eligible for a GST/HST rebate depending on your situation. In some cases, you don't have to be registered for the GST/HST. For instance, you may have paid the GST/HST in error on a non-taxable item.

Reason code 1A – Amounts paid in error for property or services purchased on or delivered to a reserve

Find out if you are eligible for the rebate

You can apply for a rebate of an amount you paid as or on account of GST/HST that you should not have paid for property or services purchased on or delivered to a reserve.

Do not claim a rebate under reason code 1A if you have paid the 8% provincial part of the HST in Ontario for the purchase of qualifying off-reserve property or services after June 2010 and you are:

  • a status Indian
  • an Indian band
  • council of an Indian band 

You may be entitled to apply to the Ontario Ministry of Revenue for a rebate equal to the 8% provincial part of the HST paid. Do not use Form GST189 to apply for the 8% provincial rebate.

If you believe you paid an amount as GST/HST in error to a supplier, you can request a refund or credit of the amount from the supplier instead of applying for a rebate under reason code 1A. This is often the simplest way for you to recover the amount. If the supplier gives you a refund or credit, you are no longer eligible for a rebate because the amount you paid in error has already been refunded or credited to you.

How to calculate the rebate

Enter the rebate amount for each invoice in the "GST/HST" column of Part F of the application.

For details on how to calculate your total rebate, see guide RC4033, General Application for GST/HST Rebates, under "Part C – Rebate claimed".

When to file the rebate application

You have two years to file your application after the day you paid or remitted the amount in error.

You can send only one application per calendar month.

What information to include with the rebate application and what records to keep

When you apply for a rebate include all the following information with your application:

  • the reason the amount is not payable or remittable
  • details on how you calculated your claim
  • copies of receipts for all purchases that you list
  • proof of delivery to a reserve (if applicable)

We will not return any receipts or supporting documents sent with your application. We do not accept credit card slips or debit transaction slips as proof of purchase without a copy of the invoice or cash register receipt.

 

Reason code 1C – Amounts paid in error (subsection 261(1))

Find out if you are eligible for the rebate

You can apply for a rebate of an amount if one of these situations applies:

  • You paid or remitted it as or on account of GST/HST or net tax that you should not have paid or remitted, or that was more than you had to pay or remit.
  • You paid it as penalty, interest, or any other similar obligation that was not payable or remittable.
Exceptions – Amount collected in error

If you collected an amount as or on account of GST/HST that you should not have collected, you have to include that amount in the calculation of your net tax. You are not entitled to claim a rebate for amounts you collected as GST/HST in error.

To correct this error, refund or credit the amount to your customer and issue your customer a credit note for the amount. You can then reduce your net tax owing by the amount you refunded or credited to your customer. Include the amount of the adjustment on line 107 of your GST/HST return in the reporting period in which you issued the credit note.

Exceptions – Amount paid in error

If you believe you paid an amount as GST/HST in error to a supplier, you can request a refund or credit of the amount from the supplier, instead of applying for a rebate under reason code 1C. This is often the simplest way for you to recover the amount. If the supplier gives you a refund or credit, you are no longer eligible for a rebate because the amount you paid in error has already been refunded or credited to you. If you cannot get a refund or credit from the supplier (for example, if the supplier refuses to refund the amount or goes out of business), you can apply for a rebate of that amount under reason code 1C.

You are not entitled to a rebate for amounts paid or remitted in error if any of the following apply:

  • the amount has been taken into account as tax or net tax in an assessment
  • the amount paid was tax, net tax, penalty, interest, or any other amount assessed
  • the amount is the result of an appraisal or reappraisal of the value of goods, or a determination that the GST/HST applies to the goods by the Canada Border Services Agency (CBSA)
  • you are a GST/HST registrant and the amount paid in error resulted from an incorrectly completed GST/HST return which has been or will be corrected

If the CBSA appraises or reappraises the value of goods, the result may be that you paid GST/HST in error, or more than what you actually owed. In this case, you have to apply to the CBSA for a refund of the amount.

Exceptions – Rebate of GST/HST paid for goods imported

If you import goods on a consignment, approval, or sale-or-return basis and export them within 60 days without having used or consumed them in Canada, except on a trial basis, you can apply to the CBSA for a rebate of the GST/HST you paid on these goods when you imported them. Similarly, if goods you import to consume or use are of inferior quality, damaged, or defective, you may be entitled to a rebate through the CBSA of the GST/HST you paid when you imported them.

How to calculate the rebate

Enter the rebate amount for each invoice in the “GST/HST” column of Part F of the application.

For details on how to calculate your total rebate, see guide RC4033, General Application for GST/HST Rebates, under "Part C – Rebate claimed".

For the GST/HST rates, go to GST/HST calculator (and rates).

When to file the rebate application

You have two years to file your application after the day that you paid or remitted the amount in error.

You can send only one application per calendar month. 

What information to include with the rebate application and what records to keep

When you apply for a rebate, include all the following information with your application:

  • the reason the amount is not payable or remittable
  • details on how you calculated your claim
  • copies of receipts for all purchases that you list

We will not return any receipts or supporting documents sent with your application. We do not accept credit card slips or debit transaction slips as proof of purchase without a copy of the invoice or cash register receipt.

 

Reason code 4 – Commercial goods and artistic works exported by a non-resident (subsection 252(1) and 252(2))

Find out if you are eligible for the rebate

You can apply for a rebate under reason code 4 if one of the following situations applies:

  • You are a non-resident who exported goods for commercial use outside Canada, and you paid the GST/HST on these goods. In some cases, a non-resident who purchases used and empty returnable containers (or their compacted material) for more than the refundable deposits for the containers may qualify for this rebate. In addition, a non-resident may be eligible for a rebate when the person purchases a beverage in a returnable container and is charged a non-refundable container deposit. These changes are described in more detail in GST/HST Technical Information Bulletin B-089, Returnable Containers.
  • You are a non-resident (other than a consumer), you are not a registrant, and you paid tax on property or services you acquired to use or consume exclusively in producing certain artistic works for export.
Eligibility – Commercial goods

You can apply for a rebate if all of the following apply:

  • you are a non-resident
  • you received goods in Canada and paid the GST/HST on them
  • you are not a consumer of the goods
  • you exported the goods from Canada within 60 days after delivery (you have to have either taken the goods with you when you left Canada or exported them by mail or common carrier)
  • the goods are for use primarily outside Canada
  • you did not buy the goods in the course of the commercial activities of any permanent establishment that you have in Canada
  • the total of all receipts attached to your application shows that you made taxable purchases (other than zero-rated purchases) of at least $200 Canadian (excluding the HST in a participating province or the GST and provincial sales tax (PST) in the rest of Canada)
  • each receipt attached to your application shows that you made eligible taxable purchases (other than zero-rated
    purchases) of at least $50 Canadian (excluding the HST in a participating province or the GST and PST in the rest
    of Canada)

You are not eligible for a GST/HST rebate when you export the following goods:

  • alcoholic beverages such as liquor, wine, and beer
  • tobacco products
  • gasoline, diesel fuel, or other motive fuels other than fuel that is being transported in a vehicle designed for bulk transport and that is not for use in the vehicle that is transporting it
Eligibility – Artistic works

You can apply for a rebate if all of the following apply:

  • you are a non-resident
  • you are not a GST/HST registrant
  • you paid the GST/HST on property (for example, intangible personal property such as a patent or copyright), or services (other than services of storing or shipping property) you acquired to use or consume exclusively in manufacturing or producing an original literary, musical, artistic, motion picture, or other work that is under copyright protection and any copies of that work
  • you are not a consumer of the property or services
  • you are manufacturing or producing the work and all copies of it for export
  • the total of all receipts attached to your application shows that you made taxable purchases (other than zero-rated purchases) of at least $200 Canadian (excluding the HST in a participating province or the GST and PST in the rest of Canada)
Assignment of rights to the rebate

For the rebate for exported artistic works, instead of paying the GST/HST when you make your purchase and filing the rebate application to get the tax back, you can assign your rights to your GST/HST rebate to the GST/HST registered supplier. By doing this, the supplier pays or credits your rebate to you at the time of your purchase so that you can make your purchase without paying the GST/HST.

You can assign your rights to a GST/HST rebate to your Canadian supplier of the property or services if all the following apply:

  • you are not a registrant
  • you acquire the property or services (except for a service of storing or shipping property), to consume or use only for making or producing an original literary, musical, artistic, motion picture, or other work with copyright protection
  • you are not a consumer of the property or services
  • you manufacture or produce the work and all copies of it for export

You can use this example, or design your own agreement. You have to give your supplier a copy of this assignment as documentation required to allow him or her to credit you the GST/HST payable.

If you do not assign your rebate to the registered supplier, you have to pay the GST/HST due on your purchase and apply to us for your rebate.

How to calculate the rebate

For details on how to calculate your rebate, see Guide RC4033, General Application for GST/HST Rebates. If you are applying for a rebate under reason code 4, you have for each invoice to complete Parts C and F of the application.

If you are filing a rebate application for the GST/HST you paid on commercial goods that you exported, other than artistic works that you manufactured or produced, enter the date you exported the goods in Part F of the rebate application and include proof that the goods were removed from Canada within 60 days of their delivery to you (for example, see Form 7501, U.S. Entry Summary of the U.S. Customs Border Protection).

If the registered supplier of the property or service paid or credited the rebate to you, do not send the application. The supplier has to send your rebate application with their GST/HST return.

The supplier can claim a deduction for the amount of tax paid or credited to you. To do this, the supplier claims the deduction on their GST/HST return for reporting period that includes the later of the following:

  • the last day the tax would have become payable by you on your purchase
  • the day the amount was paid or credited to you

Alternatively, the supplier can claim the deduction within one year of the later of these two days.

When to file the rebate application

If you are applying for a rebate of the GST/HST you paid on commercial goods that you exported, other than artistic works that you manufactured or produced, you have one year from the date you exported the goods to file your rebate application.

If you are applying for a rebate of the GST/HST you paid on property or services you acquired to consume or use in manufacturing or producing an eligible artistic work for export, you have one year from the date that the tax became payable on your acquisition to file the rebate application

What information to include with the rebate application and what records to keep

Include copies of receipts for all purchases that you record, unless you assign your rebate to the supplier. We will not return any receipts or supporting documents sent with your application. We do not accept credit card slips or debit transaction slips as proof of purchase without a copy of the invoice or cash register receipt.

Reason code 5 – Legal aid plan ( subsection 258 (2))

Find out if you are eligible for the rebate

You can apply for a rebate under reason code 5 if both of the following apply:

  • you are the person responsible for administering a legal aid plan
  • you paid GST/HST on legal services you bought for legal aid recipients
Example – Reason code 5

A person that administers a legal aid plan is trying to determine the amount eligible for a rebate under reason code 5. The plan has paid GST on office expenses. A lawyer also provided legal services to the plan administrator and charged the plan GST. The lawyer incurred some expenses in their capacity as a lawyer providing services to the plan administrator (long distance calls and photocopying court decisions). The lawyer, in their capacity as agent of the plan administrator, requested a medical report.

The plan administrator is eligible to claim a rebate under reason code 5 for the GST/HST paid on the legal services provided by the lawyer, including the long-distance calls and photocopies that are part of the legal services provided.

The plan administrator is not eligible to claim a rebate under reason code 5 for the office expenses and the medical report, as these are not supplies of legal services.

However, where the person responsible for administering the legal aid plan is a public service body, it may qualify for a public service bodies' rebate for some of the tax paid on expenses that are not legal services (such as the office expenses, the medical report and any other purchases that are not legal services) at the rate applicable to that public service body.

How to calculate the rebate

For details on how to calculate your rebate, see Guide RC4033, General Application for GST/HST Rebates. If you are applying for a rebate under reason code 5, you have for each invoice to complete Parts C and G of the application.

When to file the rebate application

You have four years to file your application from the end of the reporting period in which the tax became payable.

What information to include with the rebate application and what records to keep

Do not include any documents with your application. Keep them in case we ask to see them later.

Reason code 7 – Taxable sale of real property by a non-registrant (subsection 257(1)) or taxable sale of capital personal property of a municipality or designated municipality who is a non-registrant (subsection 257.1(1))

Find out if you are eligible for the rebate

You may qualify to file a rebate application if one of the following situations applies:

Eligibility – Taxable sale of real property by a non-registrant

Generally, this rebate is available when both of the following apply:

  • a non-registrant makes a taxable sale of real property
  • the non-registrant paid the GST/HST on the purchase of that property and/or on improvements made to that property but was previously unable to recover that tax

A non-registrant may claim this rebate to recover some or all of the tax payable by the non-registrant on the purchase of the real property and/or on improvements made to the property.

If the non-registrant was entitled to recover in some other way (for example, by claiming another type of rebate) the rebate, the amount of this rebate will be reduced or eliminated by the amount the non-registrant was entitled to recover (whether or not it was actually claimed).

You can apply for a rebate if all the following apply:

  • you are not a registrant
  • you paid GST/HST on real property such as land, a building, or an interest in real property when you last acquired the property and/or when you made improvements to it
  • you made a taxable sale of the property, including a deemed taxable sale

If you need help determining whether your sale of real property is taxable or whether you are eligible for this rebate, call 1-800-959-8287.

Eligibility – Taxable sale of capital personal property

Generally, this rebate is available when a non-registrant municipality makes a taxable sale of capital personal property or a non-registrant designated municipality makes a taxable sale of capital personal property that is designated municipal property and the municipality or designated municipality paid the GST/HST on the purchase of that property and/or on improvements to the property, but was previously unable to recover that tax.

The municipality or designated municipality may claim this rebate to recover some or all of the tax payable when it purchased the property and/or made improvements to it.

If the municipality or designated municipality was entitled to recover the rebate, the amount of this rebate will be reduced or eliminated by the amount the municipality or designated municipality was entitled to recover (whether or not it was actually claimed).

You can apply for a rebate if all the following apply:

  • you are a municipality or designated municipality that is not a GST/HST registrant
  • you paid or are considered to have paid the GST/HST on the purchase of capital personal property, such as a computer, equipment, or office furniture
  • you later sell that property (for designated municipalities, the capital personal property sold must be designated municipal property)
  • your sale of that capital personal property is taxable and the GST/HST became payable or would have been payable on the sale had the property not been part of a supply of a business where no tax was payable because you and the purchaser made a joint election. For more information on this election, see Form GST44, Election Concerning the Acquisition of a Business or Part of a Business

Any sale (other than an exempt sale) of capital personal property by a municipality is a taxable sale for GST/HST purposes. This also applies to any sale (other than an exempt sale) of capital personal property that is designated municipal property by a designated municipality.

Restriction on claiming a rebate in the case of a seizure of real property or capital personal property

A creditor can seize a person's real property or capital personal property for non-payment of a debt and sell it to a third party to recover the debt. If your property is seized, we consider you to have made a sale to the creditor at the time of the seizure. Where such a sale is taxable, you are eligible for a rebate under reason code 7, as long as all the other conditions are met.

However, you may have a legal right under federal or provincial law, or under an agreement relating to a debt security, to redeem the property within a certain time after the creditor's sale of the property.

In such a case, you cannot apply for the rebate unless the time limit for redeeming the property has expired and you have not redeemed the property. In addition, the payment for your sale of the property to the creditor is considered to have become due on the day the time limit for redeeming the property expired.

Example

A city in Saskatchewan, a non‑participating province, seized land belonging to Mr. Jones, a non‑registrant, and sold it on October 1, 2017, to Mr. Smith for $20,000 plus the GST. The $20,000 includes the amount necessary for the city to recover Mr. Jones’ tax arrears owing to the city.

Mr. Jones can redeem the land up to two years after October 1, 2017. Mr. Jones is only eligible for a rebate of the GST if the redemption period has expired and he has not redeemed the property. Therefore, he can file his rebate application only at some time after October 1, 2019. However, he has to file it before October 1, 2021.

The value of the rebate will be equal to the GST calculated on the land’s fair market value on October 1, 2017, or to the basic tax content of the property as of October 1, 2017, whichever amount is less.

How to calculate the rebate

Real property

Include the amount of your rebate in Part C of the application.

The amount of your rebate is equal to the lesser of:

As you are not a registrant, you will generally calculate the basic tax content of your property by:

  1. totalling the amount of GST/HST payable by you on your last acquisition of the property and for any improvements made to the property since it was last acquired
  2. deduct any amounts that you were entitled to recover by rebate, refund, remission or otherwise
  3. take depreciation in the value of the property into account by multiplying the difference calculated above by a depreciation factor

If you are a public sector body not dealing at arm's length with the purchaser, the amount of your rebate is equal to the lesser of:

  • the basic tax content of the real property at the time of the sale (or the deemed sale)
  • the amount determined by the following formula:

(A / B) × C

where:

A is the basic tax content of the real property at the time of the sale

B is the amount that would be the basic tax content of the property at the time of the sale, if it were determined without deducting any GST/HST you were exempt from paying under any other law or were entitled to recover by rebate, refund, remission or otherwise

C is the GST/HST payable on your sale of the real property, or the GST/HST that would have been payable on the sale had the property not been part of the supply of a business where no tax was payable because you and the purchaser made a joint election. For more information on this election, see Form GST44

Capital personal property

Enter the amount of your rebate in Part C of the application.

The amount of the rebate is equal to the lesser of:

  • the basic tax content of the capital personal property at the time of the sale
  • the GST/HST payable on your sale of the capital personal property or the GST/HST that would have been payable on the sale had the property not been part of the supply of a business where no tax was payable because you and the purchaser made a joint election. For more information on this election, see Form GST44

As you are not a registrant, you will generally calculate the basic tax content of your property by

  1. totalling the amount of the GST/HST that you paid to acquire the property and make any improvements to it
  2. deduct any amounts that you were entitled to recover by rebate, refund, remission or otherwise, or would have been entitled to recover had the property been acquired for use only in non-commercial activities
  3. take depreciation in the value of the property into account by multiplying the difference (as calculated above) by a depreciation factor

For municipalities that are not listed financial institutions, the basic tax content calculation at any time after January 30, 2004, is as follows:

(A - B) × C

where: 

A is the GST/HST you paid for the last acquisition or importation of the property and for any improvements

B is the amount of any GST/HST you were entitled to recover by rebate (like the one for public service bodies), refund, remission or otherwise

C is the lesser of:

  • 1
  • the fair market value of the property at the time the property was sold, divided by the amount paid (before tax) on your last acquisition of the property and improvements made to it

The amounts for A and B do not include the GST and the federal part of the HST paid or payable before February 2004.

More information on these and other changes for municipalities can be found in Guide RC4049, GST/HST Information for Municipalities.

Using your rebate to reduce your remittance of the GST/HST

Generally, when you sell taxable real property or capital personal property, you have to collect the GST/HST from the purchaser and remit the GST/HST to us. However, there are some exceptions for taxable sales of real property.

You do not have to collect the GST/HST on a taxable sale of real property; rather, the purchaser has to remit the tax on their purchase to us directly, if: 

For more information about the special rules for remitting tax on a taxable sale of real property, including who has to remit the tax and how they do so, call 1-800-959-8287.

If you are responsible for collecting the tax from the purchaser, report that tax and remit it using Form GST62, Goods and Services Tax/Harmonized Sales Tax (GST/HST) (Non-Personalized) Return.

Generally, the amount of your remittance will be the amount you indicate as net tax on line 109 of Form GST62. However, if you are entitled to a rebate under reason code 7, you can simply remit the difference between the net tax amount on line 109 of Form GST62 and the amount of your rebate. To do this, enter the amount of your rebate on line 111 of Form GST62. If you do this, the amount you will have to remit is equal to the amount on line 109 less the amount on line 111.

File your rebate application together with Form GST62 if you want to reduce your remittance by the amount of your rebate.

File Form GST62 within one month after the month in which the transaction happens. We will assess penalty and interest if we do not receive Form GST62 and any net tax remittance by the due date.

Form GST62 is only available in pre-printed format. To order Form GST62, go to Order forms and publications.

When to file the rebate application

You have two years to file your rebate application after the day the amount for your sale of the property becomes payable or is paid without having become payable, or within two years from the day the redemption period expires, if applicable.

What information to include with the rebate application and what records to keep

Real property

Send us a letter describing the circumstances for your rebate claim, including all of the following:

  • the address of the property and a description of the property (for example, vacant land or substantially renovated housing)
  • your original intent for the property and, if your intentions for the property changed, a description of your later intentions (for example, did you originally purchase the property to construct your own house but later decide to subdivide and sell the land instead?)
  • your use of the property (for example, was it your personal residence or a rental property?)
  • a detailed listing (using Part F of Form GST189) of the GST/HST paid on any improvements you made to the property that you included in your basic tax content calculation and a description of those improvements

If you sold the property, include all of the following information with your rebate application:

  • a copy of the Statement of Adjustments from your original purchase of the property
  • a copy of the Statement of Adjustments for the sale of the property
  • the date the payment for the sale of the property became due or, if it was paid to you before the due date, the date it was paid to you by the purchaser;
  • the full name and address of the purchaser. Include the purchaser's trading name if this is different and indicate whether or not the purchaser is a registrant. Where applicable, provide the business number of the purchaser
  • if you were responsible for collecting the tax, your GST/HST return  (Form GST62, Goods and Services Tax/Harmonized Sales Tax (GST/HST) Return (Non-personalized)), in which you are reporting the GST/HST payable by the recipient on your sale. If you have already filed your return, attach a copy of it with the rebate application
  • an indication as to whether or not you are a non-resident

If you made a deemed taxable sale of the property, include all the following information with your rebate application:

  • the date you are considered to have collected the GST/HST on that deemed sale
  • the fair market value (FMV) of the property and an explanation of how you determined the FMV

In the case of a property seizure, provide us with the expiry date of the redemption period. For more information, see Restriction on claiming a rebate in the case of a seizure of real property or capital personal property.

If any of the required documentation is not received, your claim may be delayed or disallowed.

Capital personal property

A municipality does not have to give any information at the time it makes its rebate claim. However, it has to keep documents to support its claim in case we ask to see them later.

Reason code 8 – Indian band, triball council, or band-empowered entity

Find out if you are eligible for the rebate

A reason code 8 rebate is available where the GST/HST has been paid on eligible travel expenses incurred by:

A reason code 8 rebate is also available to a band, tribal council, or band-empowered entity where they reimburse or pay a reasonable allowance to their employees or officials for eligible travel expenses incurred on their behalf.

Eligible travel expenses that are acquired off-reserve for band management activities or for real property on a reserve include:

  • transportation
  • short-term accommodation
  • meals or entertainment 
 There is no rebate available under reason code 8 for the following:
  • The tax paid was not the GST/HST (such as, tax was imposed by a First Nation – First Nations Tax or First Nations Goods and Services Tax).
  • You are a status Indian, an Indian band, or council of an Indian band and you paid the 8% provincial part of the HST in Ontario for the purchase of qualifying off-reserve property or services. You may be entitled to apply to the Ontario Ministry of Finance for a rebate equal to the 8% provincial part of the HST paid. Do not use Form GST189 to apply for the provincial rebate.
  • You are an individual Indian. If you are a status Indian and you paid the GST/HST in error to a supplier, you can request a refund or credit of the amount from that supplier. Alternatively, status Indians can apply for a rebate of the amount under reason code 1A, Amounts paid in error for property or services purchased on or delivered to a reserve.
  • You are an Indian band that bought property that was delivered to a reserve, or services that are certified to be for band management activities or for real property on a reserve. You can apply for a rebate of the amount under reason code 1A, Amounts paid in error for property or services purchased on or delivered to a reserve.

How to calculate the rebate

Fill out parts A, B and E of the rebate application and fill out parts C and F for each invoice. For details on how to calculate your rebate, see Guide RC4033, General Application for GST/HST Rebates.

For the GST/HST rates, go to GST/HST calculator (and rates).

When to file the rebate application

You have two years to file your application after the day you paid or remitted the amount.

You can send only one rebate application per calendar month. 

What information to include with the rebate application and what records to keep

Include copies of receipts for all purchases you list on your application, unless a written waiver is issued. We will not return any receipts or supporting documents sent with your application. We do not accept credit card slips or debit transaction slips as proof of purchase without a copy of the invoice or cash register receipt.

An Indian band, tribal council, or band-empowered entity can apply in writing to their local tax services office, GST/HST Refund Integrity Section (Audit), to request a letter waiving the need to send copies of their receipts. The request should include details of the expected frequency of filing reason code 8 or 1A rebate claims and the estimated amount of the annual purchases subject to the rebate. Audit will issue a letter indicating if a waiver has been granted; until such time the Indian band, tribal council or band-empowered entity must send copies of receipts with its rebate application. The granting of the waiver is on the condition that original receipts are retained on file for audit purposes. In addition, there is still the requirement to complete the details in Part F of the rebate application of Form GST189, General Application for Rebate of GST/HST.

A waiver only available to Indian bands, tribal council, and band-empowered entities – not individual status Indians. A separate application form is required under each reason code.

Reason code 9 – Lease of land for residential purpose (subsection 256.1(1))

Find out if you are eligible for the rebate

You may be eligible for a rebate under reason code 9 if you paid or were considered to have paid the GST/HST on land that you own or lease if you lease the land to a particular person who either assigns the lease to a third person or leases the land to a third person, and has to self-assess and remit the tax on a value that includes the land. For example, the particular person may have to self-assess if they construct and supply a house under a long-term lease for its residential use by an individual.

How to calculate the rebate

Calculate your rebate using the following formula:

A - B

where: 

A is the total of all the GST/HST that was payable for your last purchase or deemed purchase of the land (or that would have been payable on your purchase of the land if it was not part of a supply of a business where no tax was payable because you and the vendor made a joint election) and for improvements that you made to it before the person you are leasing the land to had to self-assess

B is the total of other rebates and input tax credits that you were entitled to claim in relation to your purchase of the property, or improvements you made to it

Enter the result of your calculation in Part C of the application.

Include all of the following information on your application:

  • the name and address of the person to whom you are leasing the land. If you are leasing the land to a person who constructed residential rental property on the land, be sure to give the full legal name (and trading name, if applicable) and address of the builder
  • whether or not the person you are leasing to is registered for GST/HST purposes
  • the address of the land
  • the date the person to whom you are leasing the land becomes liable, or is reasonably expected to become liable, to self-assess the GST/HST on a value that includes the land

When to file the rebate application

You have two years to file your application after the day the person to whom you are leasing the land has to self-assess the GST/HST.

What information to include with the rebate application and what records to keep

Include a copy of the lease agreement with your application. Do not include any receipts or other documents with your application. Keep them in case we ask to see them at a later date.

For more information about this rebate, see GST/HST Memorandum 19-3-5, Rebate to Owner of Land Leased for Residential Use.

Reason code 10 – Non-registered non-resident recipient of a taxable supply of an installation service - rebate paid or credited by registered supplier (subsection 252.41(2))

Find out if you are eligible for the rebate

You can apply for a rebate of the GST/HST on an installation service which the supplier may pay or credit to you if all of the following apply:

  • you are a non-resident
  • you are not registered for the GST/HST
  • you or another non-resident who is not registered for GST/HST supplied a good on an installed basis to a person who is registered for the GST/HST
  • you are a recipient of a taxable supply of a service made in Canada by a supplier who is registered for the GST/HST, of installing the good in real property located in Canada so that the goods can be used by the recipient of the supply of the good
  • you would have had to pay the GST/HST on the installation service if the supplier had not paid or credited the rebate to you
Example – Reason code 10

In some cases, a person other than the non-registered non-resident supplier of the good may apply for the rebate.

A non-resident supplier, not registered for the GST/HST, sells goods on an installed basis to a person who is registered for GST/HST. The non-resident supplier enters into a contract with a second non-resident, who is also not registered for GST/HST purposes, to perform the installation services.

The second non-resident further contracts with another supplier, who is registered for the GST/HST, to install the goods in real property in Canada.

In this example, the second non-resident would be the one eligible for the rebate for the GST/HST paid on the installation service, not the original non-resident supplier of the good, and the supplier of the installation service may pay or credit the rebate to the second non-resident.

If the supplier does not pay or credit the rebate to you and you meet all the eligibility criteria, you can file for your rebate under reason code 11.

Joint and several liability

If a supplier pays or credits a rebate to a person and the supplier knows or ought to know that the person is not entitled to all or part of the rebate, both the supplier and the person who received the rebate are liable to repay the amount to us.

How to calculate the rebate

Complete Parts A, B, C, E, and F of the rebate application. Make sure to indicate what you would have paid if the supplier had not paid or credited the amount to you. For details on how to calculate your rebate, see Guide RC4033, General Application for GST/HST Rebates.

The GST/HST registered supplier of the installation service who pays or credits the rebate to you has to complete Part G of the application. The supplier must then send the application with their GST/HST return and can claim the amount paid or credited on line 107 of the return.

When to file the rebate application

The registered supplier has to file the rebate application with their GST/HST return for the reporting period in which they paid or credited the rebate, and can deduct the amount on line 107 of the return.

What information to include with the rebate application and what records to keep

The registered supplier does not have to include any supporting documents (for example, a receipt or invoice for the installation service) when the GST/HST return and the rebate application are filed. The supplier and the purchaser need to keep their copies of these documents on file in case we ask to see them later.

Reason code 11 – Non-registered non-resident recipient of a taxable supply of an installation service-rebate not paid or credited by supplier (subsection 252.21(1))

Find out if you are eligible for the rebate

You can apply for a rebate of the GST/HST on an installation service if all of the following apply:

  • you are a non-resident
  • you are not registered for the GST/HST
  • you or another non-resident who is not registered for GST/HST supplied a good on an installed basis to a person who is registered for the GST/HST
  • you are a recipient of a taxable supply of a service made in Canada by a supplier who is registered for the GST/HST for installing the good in real property located in Canada so that the good can be used by the recipient of the supply of the good
  • you paid the GST/HST on the installation service

In some cases, a person other than the non-registered non-resident supplier of the good may apply for the rebate.

An example of this is the following:

  • A non-resident supplier, not registered for the GST/HST, supplies a good on an installed basis to a person who is registered for the GST/HST.
  • The non-resident supplier enters into a contract with a second non-resident, who is also not registered for the GST/HST, to perform the installation services.
  • The second non-resident further contracts with another supplier, who is registered for the GST/HST, to install the good in real property in Canada.

In this example, the second non-resident has to pay the GST/HST on the installation services, and would be eligible for the rebate, not the original non-resident supplier of the good.

In some cases, the GST/HST-registered supplier will pay or credit you your rebate at the time of your purchase. If the supplier has done this, follow the instructions for reason code 10. 

How to calculate the rebate

Complete Parts C and F of the application. Enter in Part F of the application the date the installation service was completed. For details on how to calculate your rebate, see Guide RC4033, General Application for GST/HST Rebates.

When to file the rebate application

You have one year to file your application after the completion of the installation service.

What information to include with the rebate application and what records to keep

Include copies of receipts for all purchases you list on your application. We will not return any receipts or supporting documents sent with your application. We do not accept credit card slips or debit transaction slips as proof of purchase without a copy of the invoice or cash register receipt.

Reason code 12 – Goods imported at a place in a non-participating province, or imported at a place in a participating province with a lower HST rate (section 261.2)

Find out if you are eligible for the rebate

You can apply for the rebate under reason code 12 if all of the following apply:

  • you are a resident of a participating province and paid the HST on goods that you imported into Canada
  • the goods were imported for consumption, use or supply exclusively (90% or more) in a province different from the participating province that the provincial part of the HST paid on importation was calculated
  • you have paid all provincial levies, if any, that are imposed on the goods
  • the total of all tax that you are eligible to claim for this rebate, shown on receipts attached to your application, is at least $25 Canadian.

A segregated fund of an insurer described in subparagraph 149(1)(a)(vi), and an investment plan described in subparagraph 149(1)(a)(ix) are not eligible to claim this rebate. For more information, see reason code 25.

Generally, this rebate is not available to a selected listed financial institution (SLFI). However, if you are a SLFI that is an insurer or a surety, a rebate may be available in certain limited conditions. For more information, call 1-855-666-5166.

A rebate under reason code 12 is only for goods imported into Canada. If you purchased goods in a participating province, for consumption, use or supply in another province, see Form GST495, Rebate Application for the Provincial Part of Harmonized Sales Tax (HST), for information on claiming a rebate of the provincial part of HST.

How to calculate the rebate

Complete Parts A, B, C, E, and F of the rebate application. For details on how to calculate your rebate, see Guide RC4033, General Application for GST/HST Rebates.

Calculating your rebate for the provincial part of the HST on goods imported at a place in a non-participating province, or at a place in a participating province with a lower HST rate.

Use the following formula to determine the amount of the rebate you can claim for the goods that are imported for consumption, use or supply exclusively (90% or more) in a province:

A - B

where:

A is the provincial part of the HST paid on importation

B is either zero for specified items (specified items relates to a property covered by the Deduction for Provincial Rebate (GST/HST) Regulations) or in any other case, the amount of the provincial part of HST that would have been payable on the importation of the goods if the provincial part were calculated at the (lower) provincial rate for the province where the goods were imported (see GST/HST calculator (and rates) for the applicable rates)

When to file the rebate application

You have one year to file your rebate from the day that the tax becomes payable.

If you are an individual, you can only claim a rebate once in each calendar quarter. Businesses can apply once every calendar month.

What information to include with the rebate application and what records to keep

Include copies of receipts for all purchases you list on your application. You also have to provide proof that you have paid all taxes imposed outside the participating provinces that are payable, if any, on all the purchases you listed. We will not return any receipts or supporting documents sent with your application. We do not accept credit card slips or debit transaction slips as proof of purchase without a copy of the invoice or cash register receipt.

Reason code 13 – Intangible personal property or services acquired in a participating province (section 261.3)

Find out if you are eligible for the rebate

You can apply for the rebate under reason code 13 if all of the following apply:

  • you are a resident of Canada and paid the HST on a supply of intangible personal property or a service
  • the intangible personal property or service is acquired for consumption, use, or supply significantly (10% or more) in provinces where the provincial portion of the HST is lower than the participating province in which the intangible personal property or service was acquired. (for non-participating provinces, the provincial portion of the HST is treated as being 0%)
  • the total of all tax that you are eligible to claim for this rebate, shown on your receipts attached to your application, is at least $25 Canadian. Each receipt must show tax of at least $5 Canadian that you are eligible to claim.

A segregated fund of an insurer described in subparagraph 149(1)(a)(vi), and an investment plan described in subparagraph 149(1)(a)(ix) are not eligible to claim this rebate. For more information, see reason code 25.

Generally, this rebate is not available to a selected listed financial institution (SLFI). However, if you are a SLFI that is an insurer or a surety, a rebate may be available in certain limited conditions. For more information, call 1-855-666-5166.

An intangible personal property is generally a right rather than a physical object.

How to calculate the rebate

Complete Parts A, B, E, F, and Section 1 of Part C of Form GST189, General Application for Rebate of GST/HST. List all purchase details in Part F. If you need more space to list all the details of your purchases in Part F, use Form GST288, Supplement to Forms GST189 and GST498.

Enter the total of all the amounts you listed in Part F and on Form GST288, if you used it, in Section 1 of Part C.

For details on how to calculate your rebate, see Guide RC4033, General Application for GST/HST Rebates.

Calculating your rebate on or for the provincial part of the HST or portion thereof

Use the following formula to determine the amount of the rebate you can claim as the recipient of a supply made in a particular participating province of intangible personal property or a service:

A - B

where:

A is the amount of the provincial part of HST paid for the supply

B is the total of all amounts, each of which is determined for a participating province by the formula:

C × D

where:

C is one of the following:

  • zero, if the property or service is a specified item in respect of the participating province
  • in any other case, the amount of tax that would have become payable by the person for the supply if that tax were calculated on the amount of consideration for the supply:
    • at the tax rate for the participating province, if the tax rate for the participating province is lower than the tax rate for the particular participating province; or
    • in any other case, at the tax rate for the particular participating province

D is the extent (expressed as a percentage) to which you acquired the property or service for consumption, use or supply in the participating province

When to file the rebate application

You have one year to file your application from the day that the tax became payable.

If you are an individual, you can only claim a rebate once in each calendar quarter. Otherwise, a rebate can be claimed once every calendar month.

What information to include with the rebate application and what records to keep

Include copies of receipts for all purchases you list on your application. We will not return any receipts or supporting documents sent with your application. We do not accept credit card slips or debit transaction slips as proof of purchase without a copy of the invoice or cash register receipt.

Reason code 16 – Provincial point-of-sale rebate on qualifying items

Find out if you are eligible for the rebate

Use reason code 16 for qualifying items purchased and consumed in the same province where the point-of-sale rebate was not granted. If you purchased goods in a participating province for consumption, use, or supply in another province, see Form GST495, Rebate Application for the Provincial Part of the Harmonized Sales Tax (HST), to claim a rebate of the provincial part of the HST.

Generally, if you buy a qualifying item in a participating province that provides a provincial point-of-sale rebate for the designated item, the registrant supplier will credit you with the rebate of the provincial part of the HST due at the time of your purchase. This means that you usually will not pay the provincial part of the HST when you buy a designated item in a participating province that provides a provincial point-of-sale rebate for the designated item.

The point-of-sale rebate applies to sales of qualifying items at retail establishments, over the internet, and at any point in the distribution chain. However, if the registrant supplier does not credit the rebate to you, you can apply for a rebate of the provincial part of the HST paid on the sale of qualifying items under reason code 16.

You can apply for this rebate if either of the following apply:

  • you bought a qualifying item in a participating province that provides a provincial point-of-sale rebate for the qualifying item you paid the provincial part of the HST and the registrant supplier did not credit you with the rebate of the provincial part of the HST due at the time of your purchase
  • you brought a qualifying item into a participating province that provides a provincial point-of-sale rebate in for the qualifying item and you have self-assessed and remitted the provincial part of the HST at the applicable rate for the participating province

If you are a registrant, you may also be eligible to claim an input tax credit (ITC) to recover the 5% federal part of the HST paid. You cannot claim an ITC to recover the provincial part of the HST paid. Instead, apply for a rebate under reason code 16.


Qualifying items for the point-of-sale rebate
and in which participating provinces it applies
Provinces Books Children's items Feminine hygiene products Qualifying heating oil Newspaper Qualifying food and beverage
British Columbia
(July 2010 to March 2013)
YesFootnote 1 Yes Yes No No No
New Brunswick and
Newfoundland and LabradorFootnote 2
YesFootnote 1 No No No No No
Nova Scotia YesFootnote 1 Yes No No No No
Ontario YesFootnote 1 Yes No No Yes Yes
Prince Edward Island YesFootnote 1 Yes No Yes No No
Qualifying items for the point-of-sale rebate

The participating provinces will provide point-of-sale rebates of the provincial part of the HST payable on sales of certain qualifying items. The vendor will automatically credit the provincial part of the HST and only collect the 5% federal part of the HST payable on the sale of that item. Crediting purchasers in this manner will not affect a vendor's ability to claim input tax credits on its business inputs.

The point-of-sale rebate will not only apply to sales of qualifying items at retail establishments and over the internet, but will also be available on sales of qualifying items made at any point in the distribution chain.

Books

Books eligible for the point-of-sale rebate include:

  • a printed book or an update of a printed book
  • an audio book, all or substantially all of which is a spoken reading of a printed book
  • composite property that consists of a printed book and a read-only medium (or a right to access a website under certain conditions), which is wrapped, packaged or prepared for sale as a single product under specific situations
  • a bound or unbound printed version of a scripture of any religion

A printed book is not:

  • a newspaper
  • a magazine or periodical acquired other than by subscription
  • a magazine or periodical where the printed space devoted to advertising is not more than 5% of the total printed space
  • a brochure or pamphlet
  • a sales catalogue, a price list, or advertising material
  • a warranty booklet or an owner's manual
  • a book designed primarily for writing on
  • a colouring book or a book designed primarily for drawing on or affixing thereto, or inserting therein, items such as clippings, pictures, coins, stamps, or stickers
  • a cut-out book or a press-out book
  • a program relating to an event or performance
  • an agenda, calendar, syllabus, or timetable
  • a directory, an assemblage of charts, or an assemblage of street or road maps, but not including a guidebook or an atlas that consists in whole or in part of maps other than street or road maps
  • a rate book
  • an assemblage of blueprints, patterns, or stencils
  • an assemblage or a collection of, or any item similar to, the above items
  • an electronic or digital publication 

For more information, see GST/HST Memorandum 13-4, Rebates for Printed Books, Audio Recordings of Printed Books, and Printed Versions of Religious Scriptures.

Children's car seats and car booster seats – Ontario only

Children's car seats and car booster seats that are restraint systems or booster cushions that conform to the Canada Motor Vehicle Safety Standards 213, 213.1, 213.2 and 213.5 under the federal Motor Vehicle Restraint Systems and Booster Seats Safety Regulations.

Children's cloting

The following goods are qualifying children's clothing:

  • clothing designed for babies (including baby bibs, bunting blankets, and receiving blankets)
  • clothing designed for children up to and including girls' Canada standard size 16 and boys' Canada standard size 20, or clothing designed for girls and boys in sizes extra small, small, medium, or large if the clothing does not have a qualifying Canada standard size
  • hosiery or stretchy socks, hats, ties, scarves, mittens, and gloves in sizes and styles designed for children or babies

The following goods are not qualifying children's clothing for purposes of the point-of-sale rebate:

  • adult-sized garments even if purchased for a child
  • costumes
  • children's garments of a class that is used exclusively in sports or recreational activities
  • children's footwear and children's diapers. Rebates are available on children's footwear and children's diapers if such goods qualify as such, respectively, for the purposes of those rebates
Children's diapers

Diapers, including cloth and disposable diapers designed for babies and children, diaper inserts and liners, rubber pants, and training pants. Incontinence products are generally zero-rated under HST.

The government of Prince Edward Island does not provide a point-of-sale rebate on children's diapers.

Children's footwear

Children’s footwear designed for babies, girls, and boys that have an insole length of 24.25 centimeters or less. Children’s footwear eligible for the point-of-sale rebate would not include footwear that is used exclusively in sports or recreational activities (such as skates, rollerblades, ski boots, or cleats).

Feminine hygiene products

Feminine hygiene products, including sanitary napkins, tampons, sanitary belts, or other products marketed exclusively for purposes similar to the purposes for which sanitary napkins, tampons and sanitary belts are marketed.

Newspapers – Ontario only

Print newspapers that contain news, editorials, feature stories, or other information of interest to the general public, and that are published at regular intervals, typically on a daily, weekly, or monthly basis would qualify for the point-of-sale rebate.

Flyers, inserts, magazines, periodicals, and shoppers would not qualify.

Qualifying heating oil

Fuel that is suitable for use as heating oil would qualify for the point-of-sale rebate where it is marketed or sold as fuel for use as heating oil for heating homes, buildings, or similar structures. Heavy fuel oil, or fuel sold as fuel for use in internal combustion engines, does not qualify.

Qualifying prepared food and beverages – Ontario only

Qualifying prepared food or beverages that are ready for immediate consumption and that are sold for a total consideration of not more than $4.00, whether consumed on or off the premises where they are sold. Qualifying items would include:

  • food or beverages heated for consumption
  • salads not canned or vacuum-sealed
  • sandwiches and similar products other than when frozen
  • platters of cheese, cold cuts, fruit or vegetables, and other arrangements of prepared food
  • cakes, muffins, pies, pastries, tarts, cookies, doughnuts, brownies, croissants with sweetened filling or coating, or similar products where they are not prepackaged for sale to consumers and are sold as single servings in quantities of less than six
  • ice cream, ice milk, sherbet, frozen yoghurt or frozen pudding, non-dairy substitutes for any of these products, or any product that contains any of these products sold in single servings and not pre-packaged
  • other food items not zero-rated as basic groceries solely by virtue of the types of sales made at the establishment where they are sold (such as, a sale of a bagel or a plain croissant in a restaurant)
  • non-carbonated beverages when dispensed at the place where they are sold
  • any of the following when sold with a qualifying food item above:
    • other beverages except if the cans, bottles or other primary containers in which they are sold contain a quantity exceeding a single serving
    • cakes, muffins, pies, pastries, tarts, cookies, doughnuts, brownies, croissants with sweetened filling or coating, or similar products where they are prepackaged for sale to consumers in quantities of less than six items each of which is a single serving
    • ice cream, ice milk, sherbet, frozen yoghurt or frozen pudding, non-dairy substitutes for any of the foregoing, or any product that contains any of the foregoing, when pre-packaged and sold in single servings
    • other snack foods such as chips, salted nuts, popcorn, candies, fruit bars and granola bars

Wine, spirits, beer, malt liquor, or other alcoholic beverages will not be a qualifying beverage for the purpose of the point-of-sale rebate.

For information on food items that are not zero-rated as basic groceries and the meaning of establishment, see GST/HST Memorandum 4-3, Basic Groceries.

How to calculate the rebate

Complete Parts A, B, E, F, and Section 1 of Part C of Form GST189, General Application for Rebate of GST/HST. For details on how to calculate your rebate, Part C – Rebate claimed, see Guide RC4033, General Application for GST/HST Rebates.

Calculating your rebate for the provincial part of the HST

If you are eligible for a rebate of the provincial part of the HST, multiply the amount of the HST by:

  • 8/13 for those purchases taxed at 13%
  • 9/14 for those purchases taxed at 14%
  • 10/15 for those purchases taxed at 15%
How registrant suppliers show the rebate on their invoices

When disclosing the HST on an invoice or receipt issued in for the sale of qualifying items to which the registrant supplier has paid or credited the rebate amount at the point of sale, the registrant supplier may show one of the following:

  • the total amount of the HST payable (or the total HST rate) with the rebate amount paid or credited shown separately
  • the total HST payable as an amount net of the rebate amount paid or credited
  • the total price of the qualifying items that includes HST at a net rate of 5%

When to file the rebate application

You have four years to file your application from the day the tax became payable.

What information to include with the rebate application and what records to keep

Include copies of receipts for all purchases you list on your application. We will not return any receipts or supporting documents sent with your application. We do not accept credit card slips or debit transaction slips as proof of purchase without a copy of the invoice or cash register receipt.

Reason code 20 – Remission order

Find out if you are eligible for the rebate

Use this reason code if you are filing this form as a result of a remission order granted under the Financial Administration Act.

Calculate the rebate amount by following the instructions given in the remission order.

You are not entitled to this rebate if any of the following situations apply to you:

  • the amount claimed has previously been rebated, refunded or remitted to you
  • you claimed or were entitled to claim an input tax credit in respect of the rebate amount
  • you obtained or were entitled to obtain a rebate, refund or remission of GST/HST under another provision of a federal statute
  • you received a credit note or you issued a debit note in respect of an adjustment, rebate or credit
  • in the event of a bankruptcy, you should receive a rebate to which you were entitled before the appointment of a trustee in bankruptcy, and you have not filed all your returns and remitted all outstanding amounts in respect of reporting periods that ended before the appointment
  • the deadline for filing the rebate application has passed

If you need help determining if you are eligible for this rebate, call 1‑800‑959‑8287

How to report and claim the rebate

For details on how to calculate your rebate, see Guide RC4033, General Application for GST/HST Rebates.

When to file the rebate application

You have to file your rebate application within the period established by the remission order. 

What information to include with the rebate application and what records to keep

Include copies of receipts for all purchases you list on your application. We will not return any receipts or supporting documents sent with your application. We do not accept credit card slips or debit transaction slips as proof of purchase without a copy of the invoice or cash register receipt.

Reason code 23 – Ontario First Nations point-of-sale relief

Find out if you are eligible for the rebate

You can claim a credit under reason code 23 if you are a GST/HST registrant supplier who credited status Indian purchasers, at the time of sale in Ontario, an amount equal to the 8% provincial part of the HST on qualifying off-reserve supplies of property or service.

When a GST/HST registrant supplies qualifying property or service off a reserve to a status Indian purchaser, the registrant may credit an amount equal to the 8% provincial part of the HST and only collect the 5% federal part of the HST on that property or service.

Do not claim a rebate under reason code reason 23 if you are a status Indian purchaser, you paid the 8% provincial part of the HST on the purchase of qualifying off-reserve property or services after June 2010, and the supplier did not credit you the provincial part of the HST. Instead, you would apply to the Ontario Ministry of Finance for a rebate equal to 8% the provincial part of the HST paid.

How to report and claim the rebate

How GST/HST registrant suppliers report credited amounts

In contrast to point-of-sale rebates for certain qualifying items (such as children's items and books), the supplier will need to include on its GST/HST return all of the following:

  • the amount of HST collected or collectible for the supplies on line 103 at the full 13% rate (if you are filing your GST/HST return online, include this amount on line 105)
  • the amounts credited at the point of sale on line 111

Also, the GST/HST registrant would be required to complete Form GST189, General Application for Rebate of GST/HST, using reason code 23. On the form, the registrant would be required to:

  • report the amount that has been credited to status Indian purchasers at the point of sale
  • indicate in the appropriate box that this amount has been set off on line 111 of the GST/HST return against the remittance amount on the GST/HST return
  • identify the reporting period to which the set-off on the GST/HST return applies

Do not include amounts for items that are otherwise relieved from GST/HST or eligible for a point-of-sale rebate of the provincial part of the HST for certain qualifying items.

How GST/HST registrant suppliers show the amount credited on their invoices

When disclosing the HST on an invoice or receipt issued for a qualifying off-reserve supply of property or services for which the GST/HST registrant supplier has credited an amount to a status Indian purchaser at the point of sale, the registrant supplier may show one of the following:

  • the total amount of the HST payable (or the total HST rate) with the rebate amount paid or credited shown separately
  • the total HST payable as an amount net of the rebate amount credited
  • the total price of the qualifying property or service that includes HST at a net rate of 5%

The netting of the HST amount to 5%, or having the price include HST at a net rate of 5%, is only permitted on the invoice, while the GST/HST return must show tax at 13% on line 105, Total GST/HST and adjustments, and the amount credited on line 111, Rebates.

Unlike other cases where the 8% provincial part of the HST is credited by GST/HST registrants (such as the point-of-sale rebates for certain qualifying items), the amount credited for qualifying off-reserve purchases made by status Indian purchasers is not a deduction in the calculation of the registrant's net tax. 

When to file the rebate application

The registrant submits Form GST189 with its GST/HST return for the reporting period in which the set-off is made to the local tax centre.

If you are mailing the application, the tax centre should receive the GST189 form on or before the due date of the GST/HST return.

What information to include with the rebate application and what records to keep

Do not include any documents with your application. Keep them in case we ask to see them at a later date.

Reason code 24 – Poppies and wreaths (subsection 259.2(2))

Find out if you are eligible for the rebate

If you are a Legion entity, you may apply for a 100% rebate under reason code 24 of the GST/HST paid or payable on poppies or wreaths you acquired, imported or brought into a participating province during a claim period. This rebate applies to GST/HST that became payable, or was paid without having become payable, after 2009.

How to calculate the rebate

If you are applying for a rebate under reason code 24, complete Section 1 of Part C, and Part F of Form GST189, General Application for Rebate of GST/HST.

For details on how to calculate your rebate, see Guide RC4033, General Application for GST/HST Rebates.

When to file the rebate application

You have four years to file your application after the last day of your claim period in which the tax became payable, or was paid without having become payable, after 2009.

You can send only one rebate application for any claim period.

What information to include with the rebate application and what records to keep

Include copies of receipts for all purchases you list on your application. We will not return any receipts or supporting documents sent with your application. We do not accept credit card slips or debit transaction slips as proof of purchase without a copy of the invoice or cash register receipt.

Reason code 25 – Rebate for certain investment plans and segregated funds of an insurer (subsection 261.31(2))

Find out if you are eligible for the rebate

You may be eligible for a rebate under reason code 25 for all or a portion of the provincial part of the HST in respect of tax that became payable, or was paid without becoming payable, if you are one of the following:

  • an investment plan or a segregated fund of an insurer that is not a selected listed financial institution (SLFI), such as a trust governed by an RRSP that is not an SLFI
  • a provincial stratified investment plan that is an SLFI

Each rebate amount for which an application is made under subsection 261.31(2) for the purposes of reason code 25 must be at least $25 Canadian.

Under proposed changes to regulations related to the Excise Tax Act (ETA), an investment plan is a "provincial investment plan" for a particular province at any time where the investment plan meets any of the following conditions:

  • is at that time a financial institution described in section 11 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations, the units of which are permitted, under the laws of Canada or a province, to be sold only in the particular province
  • is at that time a stratified investment plan, all the series of which are provincial series for the particular province
  • meets both of the following criteria:
    • the investment plan has, throughout the taxation year in which the fiscal year of the investment plan that includes that time ends, a permanent establishment in the particular province, as determined in accordance with section 3 of theSelected Listed Financial Institutions Attribution Method (GST/HST) Regulations
    • the investment plan does not have, throughout that taxation year, a permanent establishment in a province other than the particular province, as determined in accordance with section 3 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations

Under the proposed changes, a provincial stratified investment plan means a stratified investment plan (other than a provincial investment plan) with one or more provincial series.

Do not use reason code 25 if you are an insurer that elects with your segregated fund to pay or credit the relevant part of the rebate directly to your segregated fund. Instead, use reason code 26.

For more information on investment plans, segregated funds of an insurer, and provincial series, see GST/HST Technical Information Bulletin B-107, Investment Plans (Including Segregated Funds of an Insurer) and the HST.

 

How to calculate the rebate

Complete Parts A, B, E, F, and Section 1 of Part C of Form GST189, General Application for Rebate of GST/HST. List all purchase details in Part F. If you need more space to list all the details of your purchases in Part F, use Form GST288, Supplement to Forms GST189 and GST498.

Enter the total of all the amounts you listed in Part F and on Form GST288, if you used it, in Section 1 of Part C.

How to calculate the rebate for the provincial part of the HST 

If you are eligible for a rebate of the provincial part of the HST, multiply the amount of the HST by:

  • 8/13 for those purchases taxed at 13%
  • 9/14 for those purchases taxed at 14% 
  • 10/15 for those purchases taxed at 15%
How to calculate the rebate amount under section 261.31

If you are an investment plan that meets the eligibility criteria referred to above, apply the formulas below to calculate the rebate amount applicable to you under proposed subsection 261.31(2) with respect to tax on taxable supplies made in a participating province under subsection 165(2), section 212.1, or section 218.1 or amounts self-assessed under Division IV.1 of the ETA.

Provincial stratified investment plans

This rebate is for provincial stratified investment plans

Rebate amount on the provincial part of the HST under subsection 165(2) of the ETA

If you are a provincial stratified investment plan and tax is payable for a participating province under subsection 165(2) for a supply of property or a service, use the following formula to determine the amount of the rebate you can claim on these tax amounts for each provincial series:

    (A - B) × C 

where:

A is the amount of the provincial part of the HST

B is the amount of tax that would have become payable under subsection 165(2) for the supply at that time if that tax were calculated at the provincial tax rate for the participating province, if the provincial series is for a participating province. Otherwise, B is zero

C is the extent (expressed as a percentage) to which the property or service was acquired for consumption, use or supply in the course of the activities relating to the provincial series, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations

Rebate amount on tax with respect to tangible personal property

If you are a provincial stratified investment plan and tax is payable under section 212.1 or 218.1 or subsection 220.06(1) for tangible personal property, use the following formula to determine the rebate you can claim for a provincial series:

    (D - E) × F

where:

D is the amount of the provincial part of the HST self-assessed under the applicable section or subsection referred to above

E is the amount of tax that would have become payable under the applicable section or subsection for the property at the particular time if that tax were calculated at the tax rate for that participating province and if the provincial series is for a participating province. Otherwise, E is zero

F is the extent (expressed as a percentage) to which the tangible personal property was acquired, or imported for consumption, use or supply in the course of the activities relating to the provincial series, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations

Rebate amount on tax payable under subsection 220.05(1) or 220.07(1) of the ETA

If you are a provincial stratified investment plan and tax is payable under subsection 220.05(1) or subsection 220.07(1), use the following formula to determine the amount of the rebate you can claim for tangible personal property brought into a particular participating province for a provincial series:

(G - H) × I

where:

G is the amount of the provincial part of the HST self-assessed under the applicable section referred to above

H is:

  • if the provincial series is for the particular participating province, the amount of that tax
  • if the provincial series is for a participating province, other than the particular participating province, the amount of tax that would have become payable under that subsection for the bringing in of the property if the property were brought into the other particular province
  • in any other case, zero

I is the extent (expressed as a percentage) to which the property was brought into the participating province for consumption, use or supply in the course of the activities relating to the provincial series, as determined in accordance with section 51 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations

How to calculate the rebate amount for a provincial investment plan 

If you are a provincial investment plan you must calculate your rebate using the formulas below.

Rebate amount on the provincial part of the HST under subsection 165(2) of the ETA

If you are a provincial investment plan and tax is payable under subsection 165(2) for a supply of property or service, use the following formula to determine the amount of the rebate you can claim:

A - B

where:

A is the provincial part of the HST

B is, if you are a provincial investment plan for a participating province, the amount of tax that would have become payable under subsection 165(2) for the supply at the particular time if that tax were calculated at the tax rate for that participating province. Otherwise, B is zero

Rebate amount on tax for tangible personal property

If you are a provincial investment plan and tax is payable under section 212.1 or 218.1 or subsection 220.06(1) for tangible personal property, use the following formula to determine the amount of the rebate you can claim:

C - D

where:

C is the provincial part of the HST self-assessed under the applicable section or subsection referred to above

D is, if you are a provincial investment plan for a participating province, the amount of tax that would have become payable under the applicable section or subsection for the property at the particular time if that tax were calculated at the tax rate for a participating province. Otherwise, D is zero

Rebate amount on tax payable under subsection 220.05(1) or 220.07(1) of the ETA

If you are a provincial investment plan, and tax is payable under subsection 220.05(1) or subsection 220.07(1), use the following formula to determine the amount of the rebate you can claim:

E - F

where:

E is the provincial part of the HST self-assessed under the applicable subsection above

F is one of the following:

  • if you are a provincial investment plan the particular participating province, the amount of that tax
  • if you are a provincial investment plan for a participating province other than the particular participating province, the amount of the tax that would have become payable under that subsection for the bringing in of the property if the property were brought into the other participating province
  • in any other case, zero
How to calculate the rebate amount for other investment plans and segregated funds

If you are not an SLFI and you are an investment plan or a segregated fund of an insurer (other than a provincial stratified investment plan or a provincial investment plan) such as a private investment plan or a pension entity that is not an SLFI, you must calculate your rebate using the formulas below.

Rebate amount on the provincial part of the HST under subsection 165(2) of the ETA

If you are an investment plan or a segregated fund of an insurer (other than a provincial stratified investment plan or a provincial investment plan) and tax is payable under subsection 165(2) use the following formulas to determine the amount of the rebate you can claim for the supply of property or service in a participating province: 

            A - B 

where:

A is the provincial part of the HST

B is the total of all amounts, each of which is determined for a participating province by the following formula:

            C × D

where:

C is the provincial part of HST that would have become payable under subsection 165(2) for the supply at the particular time if it were calculated at the tax rate for the participating province

D is the extent (expressed as a percentage) to which the investment plan may reasonably be regarded as holding or investing funds for the benefit of persons that are resident in the participating province

Rebate amount on tax for tangible personal property

If you are an investment plan or a segregated fund of an insurer (other than a provincial stratified investment plan or a provincial investment plan) and tax is payable under section 212.1 or 218.1 or subsection 220.06(1) for tangible personal property, use the following formula to determine the amount of the rebate you can claim:

            E - F

where:

E is the provincial part of the HST self-assessed under the applicable section or subsection referred to above

F is the total of all amounts, each of which is determined for a participating province by the following formula:

            G × H

where:

G is the provincial part of the HST that would have become payable under the applicable section or subsection for the property at the particular time if that tax were calculated at the tax rate for the participating province

H is the extent (expressed as a percentage) to which the investment plan may reasonably be regarded as holding or investing funds for the benefit of persons that are resident in the participating province

Rebate amount on tax for intangible personal property or services

If you are an investment plan or a segregated fund of an insurer (other than a provincial stratified investment plan or a provincial investment plan) and tax is payable under section 218.1 or subsection 220.08(1) for a supply of intangible personal property or a service on the amount of consideration for that supply, use the following formula to determine the amount of the rebate you can claim:

            I - J

where:

I is the provincial part of the HST self-assessed under the applicable section or subsection referred to above

J is the total of all amounts, each of which is determined for a participating province by the following formula:

            K × L

where:

K is the amount of tax that would have become payable under the applicable section or subsection at the particular time if the supply were acquired by the investment plan for consumption, use or supply exclusively in the participating province

L is the extent (expressed as a percentage) to which the investment plan may reasonably be regarded as holding or investing funds for the benefit of persons that are resident in the participating province

Rebate amount on tax payable under subsections 220.05(1) or 220.07(1) of the ETA

If you are an investment plan or a segregated fund of an insurer (other than a provincial stratified investment plan or a provincial investment plan), and tax is payable under subsection 220.05(1) or 220.07(1) for bringing tangible personal property into a participating province, use the following formula to calculate your claim:

            M - N

where:

M is the provincial part of the HST self-assessed under the applicable subsection referred to above

N is the total of all amounts, each of which is determined for a participating province by the following formula:

            O × P

where:

O is the provincial part of the HST that would have become payable under the applicable subsection for the bringing in of the property, if the property were brought into the participating province

P is the extent (expressed as a percentage) to which the investment plan may reasonably be regarded as holding or investing funds for the benefit of persons that are resident in the participating province

When to file the rebate application

You have one year to file your application from the day that the tax became payable for the supply.

The investment plan or segregated fund can send an application once every calendar month.

What information to include with the rebate application and what records to keep

Do not include receipts or invoices with your application. Keep them in case we ask to see them at a later date.

Reason code 26 – Election between the segregated fund and insurer (subsection 261.31(3))

Find out if you are eligible for the rebate

Subsection 261.31(3) allows a segregated fund of an insurer to file an election to obtain rebates directly from the insurer for services supplied to the segregated fund by the insurer. Where the insurer pays or credits a rebate to the segregated fund under these provisions, it may, under subsection 234(5), claim a deduction equal to the rebate in determining its net tax. The insurer must send the rebate application with the return in which the deduction is claimed.

You must fill out Part G if you are an insurer and want to pay or credit an investment plan or segregated fund directly. For more information, see Guide RC4033, General Application for GST/HST Rebates.

The rebate amount under the election between the insurer and the segregated fund of the insurer under subsection 261.31(3) (reason code 26) must be at least $25 Canadian.

If the insurer does not pay or credit the rebate to you and you meet all the eligibility criteria, you can file for your rebate under reason code 25.

Joint and several liability

If an insurer pays or credits a rebate to its segregated fund, deducts the amount in determining its net tax, and the insurer knows or ought to know that the segregated fund is not entitled to all or part of the rebate, both the insurer and its segregated fund who received the rebate are liable to pay the amount to us.

How to calculate the rebate

Complete Parts A, B, E, F, and Section 1 of Part C of Form GST189, General Application for Rebate of GST/HST. Indicate what you would have received if the insurer had not paid or credited the amount to you.

The amount of the rebate is determined by using the application formula from reason code 25.

The insurer has to complete Part G – Registered supplier identification or insurer election and send the rebate application with the GST/HST return for the period in which the insurer paid or credited the rebate. The insurer claims the amount of the rebate on line 107 of the return.

When to file the rebate application

The segregated fund must send its application to the insurer within one year after the day the tax becomes payable in respect of the supply.

The segregated fund can send an application once every calendar month.

What information to include with the rebate application and what records to keep

Do not include any documents with your application. Keep them in case we ask to see them at a later date.

How to claim the GST/HST rebate

To claim your rebate, use Form GST189, General Application for Rebate of GST/HST. You can only use one reason code per rebate application. If you are eligible to claim a rebate under more than one code, use a separate rebate application for each reason code.

You may need to use Form GST288, Supplement to Forms GST189 and GST498 if there is not enough room in Part F to enter all the information needed.

Situations where you cannot claim a rebate

You cannot claim a rebate of an amount of the GST/HST paid if any of the following apply:

  • The amount was previously rebated, credited, refunded, or remitted to you.
  • You received a credit note, or you issued a debit note for a refund, adjustment, or credit that includes the amount.
  • You claimed or are entitled to claim an input tax credit for the amount.
  • You are entitled to otherwise obtain a rebate, refund, or remission of the amount.
  • In the case of a bankruptcy, you will not be paid a rebate that you were entitled to claim before the appointment of a trustee in bankruptcy, unless you have filed all returns and remitted all outstanding amounts for reporting periods that ended before the appointment.
  • The deadline for filing the rebate has passed.
Report a problem or mistake on this page
Please select all that apply:

Thank you for your help!

You will not receive a reply. For enquiries, contact us.

Date modified: