GST/HST Rebates for Public Service Bodies

Many goods and services provided by public service bodies are exempt from GST. These bodies can get back some of the GST they paid on items they used either to make the goods or to provide the services.

Eligibility Criteria

Public service bodies may all receive the GST/HST rebate if they meet certain conditions. Public service bodies include:

• charities;
• qualifying non-profit organizations*;
• municipalities;
• school authorities;
• hospital authorities;
• public colleges and universities.

* Also known as nonprofit, non profit, not-for-profit, voluntary and volunteer organizations.

Summary

Goods or services sold (supplies) can be GST/HST taxable at 6%, 14% or 0%, or they may be exempt from the GST/HST. Many of the goods made and services provided by public service bodies are exempt.

A public body cannot completely recover GST/HST it paid on purchases related to making exempt goods or providing exempt supplies. It can get a rebate for part of GST/HST paid on such purchases, subject to some restrictions.

Definitions

To be eligible for rebate, public service bodies must fit one of the definitions below.

Charity - Rebate rate - 50% of the GST, or the federal portion of HST. Charities in Nova Scotia, New Brunswick or Newfoundland (that are not school authorities, universities, public colleges, hospital authorities, or municipalities) also qualify for a 50% rebate of the provincial portion of the HST.

A charity may be either a registered charity or a registered Canadian amateur athletic association within the meaning of the Income Tax Act. The definition of a charity excludes such public institutions as schools, colleges and universities. For GST/HST purposes a charity also includes a non-profit organization that operates, other than for profit, a facility or part of a facility that provides:

• nursing and personal care;
• assistance with activities of daily living; and
• meals and accommodation to severely disabled residents.

Qualifying non-profit organization - Rebate rate - 50% of the GST, or the federal portion of the HST. Qualifying non-profit organizations residing in Nova Scotia, New Brunswick or Newfoundland that are not selected public service bodies also qualify for a 50% rebate of the provincial portion of the HST.

A non-profit organization means an organization organized and operated solely on a non-profit basis. A non-profit organization cannot be an individual, estate, trust, charity, municipality, public institution, or government. To be considered a qualifying non-profit organization, at any time in the fiscal year, the percentage of government funding for the fiscal year must be at least 40% of the total revenue of the organization.

Municipality - Rebate rate - 100 % of the GST, or the federal portion of the HST. Municipalities in New Brunswick and Nova Scotia also qualify for a 100 % rebate on the provincial portion of HST.

A municipality may be either:

• a city or metropolitan authority;
• a town or township;
• a village or county;
• a district or rural municipality;
• other incorporated municipal body;
• organization designated as a municipality because it supplies municipal services.

School authority - A school authority is an organization that operates a school (elementary or secondary). It provides instruction that meets the standards established by the provincial government.

Rebate rate - 68% of the GST or the federal portion of the HST. School authorities in Nova Scotia also qualify for a 68% rebate of the provincial portion of the HST.

Hospital authority - A hospital authority is an organization that operates a public hospital and that is designated by the Minister of National Revenue as a hospital authority.

Rebate rate - 83% of the GST or the federal portion of the HST. Hospital authorities in Nova Scotia also qualify for an 83% rebate of the provincial portion of the HST.

Public college - A public college is an organization that operates a post-secondary college, or a post-secondary technical institute that is funded by a government or municipality. The primary purpose of the college or institute must be to provide vocational, technical or general education. To qualify for a rebate the public college must be established and operated on a non-profit basis.

Rebate rate - 67% of the GST or the federal portion of the HST. Public colleges in Nova Scotia also qualify for a 67% rebate of the provincial portion of the HST.

University - A university is a recognized degree-granting institution or an organization that either operates a college affiliated with such an institution or operates a research body of such an institution. To qualify for this rebate, the university must be established and operated on a non-profit basis.

Rebate rate - 67% of the GST or the federal portion of the HST. Universities in Nova Scotia also qualify for a 67% rebate on the provincial portion of the HST.

Forms
For each claim period, public service bodies outside Quebec must complete the following rebate application:
Form 66E, Application for GST/HST Public Service Bodies' Rebate and GST Self-Government Refund

In Quebec, the ministère du Revenu du Québec administers the GST rebate. In Quebec, use the following forms instead of the above:
FP-66-V, GST/HST Rebate Application for Public Service Bodies

For additional details, please refer to the CRA guide RC4034, GST/HST Public Service Bodies Rebate

If you require personal assistance, please contact the CRA Business Window closest to you (see Related Reading: Business Window - Supplement or CRA's Web site for a list of addresses).

For telephone enquiries to the ministère du Revenu du Québec (MRQ), please call toll-free 1-800-567-4692 or visit their Web site.

Nova Scotia Contact(s):
See National Contact.