Manufacturers may offer rebates on the property they sell. The GST/HST and QST rules for manufacturers' rebates apply when all three of the following conditions are met:

• A manufacturer makes a taxable sale of property (excluding a zero-rated sale of property, other than a zero-rated sale of motor vehicles purchased for sale, under the QST system) to a customer entitled to a rebate.
• The sale is made either directly by the manufacturer or by another person (such as a retailer).
• The customer receives a rebate respecting the property from the manufacturer, accompanied by a document specifying that a portion of the rebate represents the GST/HST and QST, and the rebate is not associated with a debit or credit note.

How the GST and QST are applied depends on when the rebate is granted, that is, if the rebate is treated as a separate transaction or as a part of the sales transaction.