GST and QST Rebates for Public Service Bodies
Under the GST and QST systems, taxable property and services that are acquired by certain public service bodies (This link will open a new window) (PSBs) and that do not give entitlement to input tax credits (ITCs) or input tax refunds (ITRs) may nonetheless give entitlement to GST and QST rebates for public service bodies.
The QST rebate rate applicable to property and services acquired by municipalities was fixed at 62.8% for the period from January 1 to December 31, 2014. However as of January 1, 2015, the rebate rate is 50%.
Click Partial QST Rebate for Municipalities and Organizations Designated as a Municipality for details of the rebate rates applicable to property and services acquired at the end of 2014.
The table below gives the applicable rebate rates.
|Type of public service body||Rebate rate|
|Universities and public colleges||67%||47%|
|Hospital authorities, facility operators (This link will open a new window) and external suppliers (This link will open a new window)||83%||51.5%|
|Charities and qualifying non-profit organizations (other than selected public service bodies (This link will open a new window))||50%||50%|
A charity that provides a meals-on-wheels service to underprivileged individuals purchases disposable dinnerware for $500. The charity is not entitled to ITCs or ITRs because the sales of the meals are exempt. However, it may claim a rebate of 50% (the rebate rate for charities) of the GST and QST paid on the dinnerware it purchased.
($500 × 5%) × 50% = $25 × 50% = $12.50
($500 × 9.975%) × 50% = $49.88 × 50% = $24.94
Public service bodies that paid HST in the participating provinces may be entitled to a full or partial rebate of the federal component of the HST (portion corresponding to the GST). For more information, consult the Canada Revenue Agency guide GST/HST Public Service Bodies' Rebate (RC4034) or contact us.