Fact Sheet

July 2003

Goods and services tax/harmonized sales tax (GST/HST) credit

Who is eligible for the GST/HST credit?

You are eligible for the GST/HST credit if, at the beginning of the month in which the Canada Customs and Revenue Agency (CCRA) makes a payment, you are a resident of Canada and you are 19 years of age or older. If you are under 19 years of age, you are only eligible if you have (or had) a spouse or common-law partner or you are (or were) a parent and live (or lived) with your child.

If you were confined to a prison or similar institution for a period of 90 days or more, you are not eligible for the credit. If you did not have to pay tax in Canada because you were an officer or servant of another country, such as a diplomat, or a family member or an employee of that diplomat, you also are not eligible. In addition, you cannot claim a credit for a spouse or common-law partner or a child who met either of these two conditions.

Are you turning 19 years of age before April 1, 2004?

If you turn 19 before April 1, 2004, you can receive a GST/HST credit starting with the first payment after the month of your 19th birthday. All you have to do is file a 2002 tax return and apply for the credit.

How to apply for the GST/HST credit

To apply for or to continue receiving the GST/HST credit, you have to file your income tax returns each year, and check the "Yes" box in the area called "Goods and services tax/Harmonized sales tax (GST/HST) credit application" on page 1 of the return. In addition, you have to indicate your marital status in the identification area of the return. Since the credit is based on net family income, if you are married or living common-law you also have to provide your spouse or common-law partner's social insurance number and net income (even if it is zero) in the identification area.

If you have a spouse or common-law partner, only one of you can apply for the credit. No matter which person applies, the credit will be the same.

If you become residents of Canada during 2003, you may be eligible for the credit. You should use Form RC151, GST/HST Credit Application for Individuals Who Became Residents of Canada in 2003, to apply for the credit.

In previous years, you also had to enter the number of qualified children for whom you were claiming the credit. However, we now base the GST/HST credit on the Canada Child Tax Benefit (CCTB) information. If your children are not registered for the CCTB, call 1-800-387-1193 for more information. If you choose not to receive the CCTB, or if you do not yet qualify, you may still be able to receive the GST/HST credit for your children. For details, call 1-800-959-1953.

We need this information each year to determine eligibility, and to calculate the GST/HST credit correctly. The CCRA does not include the GST/HST credit with income tax refunds. Instead, in July, after the previous year's return is assessed, we will send a notice of determination to let people know the amount, if any, to which they are entitled and how the amount was calculated. The notice will include the first GST/HST credit payment if a person is entitled to receive it. If a direct deposit request was made, the notice will confirm the amount deposited.

How do you find out if you are eligible?

The CCRA issues GST/HST credit payments four times a year, July 4, 2003, October 3, 2003, January 5, 2004 and April 5, 2004. If you use direct deposit, your payment will be in your account on the same day the cheques are mailed. For more information, you can call T.I.P.S. at 1-800-267-6999. This service is also available on the CCRA Web site at www.ccra.gc.ca/benefits.

To get GST/HST credit information using T.I.P.S. or the CCRA Web site you have to provide your social insurance number, month and year of birth, and the total income you reported on line 150 of your tax return. If you call before May 1, you will have to provide the amount you entered on line 150 of the tax return you filed the previous year. If you call after April 30, you will have to provide the amount from line 150 of your current-year tax return.

What happens if your situation changes?

You must advise us of any of the following changes as soon as possible, and any resulting adjustment will be made to your GST/HST credit in the next quarter:

• your marital status changes (but if you separate due to a breakdown in your relationship, you should wait until you are separated for at least 90 days);
• you have a child;
• a child for you they were receiving the credit is no longer in your care, stops living with you, becomes a spouse or common-law partner or a parent, or dies; or
• you or your spouse or common-law partner is no longer resident in Canada.

What if you don't get a GST/HST credit payment?

You may not have received a GST/HST credit payment because:

• you moved and did not give us a new address (this also applies to direct deposit);
• you did not file an income tax return;
• you ticked "No" in error on the GST/HST credit application; or
• you are not eligible because of age, residency, or other factors.

We send a notice of determination explaining why you did not receive a payment if one of the following situations occurs:

• your income is too high;
• you owed money to one or more government institutions and your GST/HST credit was used to offset these debts;
• both spouses or common-law partners made a claim (only one spouse or common-law partner can receive the credit for the whole family); or
• your payment was withheld under the Family Orders and Agreements Enforcement Assistance Act.

Child and Family Benefits On-line Calculator

The CCRA continues to support the Government of Canada's commitment to provide access to government services on the Internet. One such service is the Child and Family Benefits On-line Calculator, available on our Web site at www.ccra.gc.ca/benefits-calculator.

You can use this calculator to get an estimate of your GST/HST credit (and any related provincial credit) payments by simply entering your marital status, family net income, province or territory of residence, and the number of children under the age of 19.

Related provincial programs

We administer the Newfoundland Harmonized Sales Tax Credit, the Newfoundland and Labrador Seniors' Benefit, and the Saskatchewan Sales Tax Credit on behalf of the provinces. There is no need to apply separately to qualify under these programs. You (or your spouse or common-law partner) should apply for the GST/HST credit on your (or your spouse or common-law partner's) tax return. We will automatically determine if you are (or your spouse or common-law partner is) qualified and will calculate the entitlement. Payments for the Newfoundland Harmonized Sales Tax Credit and the Newfoundland and Labrador Seniors' Benefit are combined with the October payment of the federal GST/HST credit. Payments for the Saskatchewan Sales Tax Credit are combined with the GST/HST credit and are issued quarterly.

More information

For more information, get the GST/HST Credit pamphlet, or call 1-800-959-1953. In addition, you can get information from any tax services office. Addresses and telephone numbers are listed in the government section of the telephone book. Information on the GST/HST credit can also be found on our Web site at www.ccra.gc.ca/benefits.

GST/HST Credit
Guideline Table effective July 2003 - June 2004

Not married

Married

Notes

1. The amounts listed above represent a client's yearly entitlement for the GST/HST credit based on their marital status, family size and family net income.
2. The yearly entitlement is normally paid in 4 quarterly issuances in the months of July 2003, October 2003 January 2004 and April 2004. The issuance date is the 5th day of the respective issuance month.
3. These amounts are only to be used as a guideline.
4. All clients must keep the Canada Customs and Revenue Agency informed of any changes to their current address, family size and marital situation.

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