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.

Municipalities – QST rebate rates

The QST rebate rate applicable to property and services acquired by municipalities was fixed at 62.8% for the period from January 1 to December 31, 2014. However as of January 1, 2015, the rebate rate is 50%.

Click Partial QST Rebate for Municipalities and Organizations Designated as a Municipality for details of the rebate rates applicable to property and services acquired at the end of 2014.

The table below gives the applicable rebate rates.

Type of public service bodyRebate rate
GSTQST
Municipalities100%50%
School authorities68%47%
Universities and public colleges67%47%
Hospital authorities, facility operators and external suppliers83%51.5%
Charities and qualifying non-profit organizations (other than selected public service bodies)50%50%
Example

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.

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