Public institutions and public service bodies are not required to register for the GST and the QST if they are considered small suppliers, that is, if their total taxable sales for a given calendar quarter or for the previous four calendar quarters did not exceed $50,000 (this limit applies to public institutions and public service bodies only).

Charity and public institution

A charity and a public institution can also be considered a small supplier if:

• 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; or
• its total taxable sales do not exceed $50,000 for a given calendar quarter or for the previous four calendar quarters.

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.

Optional registration

If your organization is considered a small supplier, you can still register for the GST and QST in order to claim input tax credits (ITCs) and input tax refunds (ITRs) for expenses incurred in making taxable sales. However, if you register, you must collect the GST and QST on taxable sales (other than zero-rated sales) and remit them to us.

For more information on public service bodies and the application of the GST and QST, see Public Service Bodies – GST/HST and QST.