Special Quick Method of Accounting for Public Service Bodies
Owing to the special nature of their activities, qualifying non-profit organizations (NPOs) and certain public service bodies can use the Special Quick Method of Accounting to calculate the GST and QST to be remitted.
To make the election to use the Special Quick Method, you must file form FP-2287-V, Election by a Public Service Body to Use the Special Quick Method of Accounting or Revocation of the Election.
To calculate the organization's net taxes using the Special Quick Method, follow the steps below.
Step 1: Calculate total taxable sales
To calculate the NPO's or public service body's net taxes using the Special Quick Method, you must first add up the taxable sales (including the GST and QST collected) made by the organization for each reporting period.
- the sale of immovables and capital assets valued at $10,000 or more (excluding GST and QST);
- supplies of financial services;
- zero-rated sales;
- sales made outside Canada for the GST and outside Québec for the QST;
- sales made to buyers that are exempt from paying taxes (such as a First Nations member).
Step 2: Calculate taxes on taxable sales
Multiply the total taxable sales (from Step 1) by the prescribed GST and QST rates.
The rates, which vary by type of organization, are given in the table below.
| Type of organization | Prescribed rates | |
|---|---|---|
| GST | QST | |
|
Hospital authorities, facility operators and external suppliers |
4.5% | 7.3% |
| School authorities | 4.4% | 7.3% |
| Municipalities | 4.7% | 7.3%1 |
| Qualifying NPOs, designated charities and specified facility operators | 3.6% | 7.3% |
| Universities and public colleges | 4.1% or 4.4%2 | 7.3% |
- The 7.3% rate for municipalities came into effect on July 1, 2016. Before that date, the rate was 5.7%.
- The 4.1% rate must be used if vending machine sales made by a university or college represent at least 25% of the organization's total sales. Otherwise, the 4.4% rate must be used.
HST
If your organization makes sales in participating provinces, see the information concerning the Special Quick Method of Accounting on the Government of Canada website to find out what the applicable rates are.
Step 3: Calculate taxes on other taxable sales
When calculating total net taxes, you must add up the GST collected on sales excluded from the total taxable sales calculated in Step 1. An example is the GST collected on the sale of immovables and capital assets and the GST remitted as a result of a change in use of capital property.
Repeat this step for the QST.
Step 4: Calculate net taxes
To determine the amount of net taxes the organization must remit, subtract the input tax credits (ITCs) the organization is entitled to from the GST collected. This includes ITCs for purchases of immovables or improvements made to them and for certain capital property valued at $10,000 or more (excluding GST and QST).
You must also subtract the input tax refunds (ITRs) that can be claimed for the property from the QST collected.