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 (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.
| Type of public service body | Rebate rate | |
|---|---|---|
| GST | QST | |
| Municipalities | 100% | 50% |
| School authorities | 68% | 47% |
| Universities and public colleges | 67% | 47% |
| Hospital authorities, facility operators and external suppliers | 83% | 51.5% |
| Charities, public institutions and qualifying non-profit organizations (only for activities not related to a selected public service body) | 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.
GST rebate
($500 × 5%) × 50% = $25 × 50% = $12.50
QST rebate
($500 × 9.975%) × 50% = $49.88 × 50% = $24.94
HST
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.
You can view the details of your GST/HST rebate applications in My Account for businesses.