Most supplies of property and services made by charities are tax-exempt. This means that you do not collect GST and QST on those supplies. Consequently, you cannot claim input tax credits (ITCs) or input tax refunds (ITRs) but you are entitled, as a public service body (PSB), to a rebate of the GST and QST paid or payable on expenses related to the supplies.

Tax-exempt supplies include:

• child-care services provided usually for less than 24 hours per day for children 14 years of age or younger
• long-term residential accommodation (at least one month of occupancy)
• care and supervision services for children, underprivileged individuals, or individuals with disabilities, when provided by a person operating an establishment for these individuals
• most services
• long-term commercial accommodation (at least one month of occupancy)
• parking space rentals
• catering services for private functions (for example, wedding receptions)
• reception hall rentals
• sales of used and donated property

As a PSB, subject to certain conditions, you also do not have to collect the taxes on certain other supplies of property and services, such as the following:

• Fundraising Activities
• Admission
• Meals and Lodging Provided to Persons in Need
• Free Property and Services
• Property and Services Sold at Direct Cost
• Games of Chance
• Recreational Programs