Details Concerning Public Service Bodies
A public service body is not required to register for the GST and the QST if it is considered a small supplier, that is, if its total taxable sales or supplies in the current or previous four calendar quarters did not exceed $50,000 (this limit applies to public service bodies only).
A charity or public institution is also considered a small supplier if, as applicable,
- it is in its first year of operation
- it is in its second year of operation and its gross revenue did not exceed $250,000 during its first fiscal year
- it has been in operation for over two years, and its gross revenue did not exceed $250,000 during one of the two fiscal years preceding the current fiscal year
To calculate gross revenue, you must take into account income from all sources, such as donations, grants, and income from property, investments or businesses. You must also take into account any amount considered a capital gain or loss for the purposes of calculating income tax.
If your organization is considered a small supplier, you can still register for the GST and QST, making you eligible for input tax credits (ITCs) and input tax refunds (ITRs) for expenses incurred in making taxable supplies. However, should you register, you must then collect the GST and QST on taxable supplies and remit the funds to us.
For more information on public service bodies and the application of the GST and QST, refer to Public Service Bodies – GST/HST and QST.