The main role of certain charities is to provide employment or employment-related services (such as occupational training, employment placement and instruction in job-seeking skills) to individuals with disabilities. These charities may apply for designation. To do so, they must contact us.
Once a charity is designated, the services it provides may become taxable, in which case they must be provided to GST and QST registrants.
However, employment-related services are exempt when provided to a public sector body or to a board, commission or other body established by a government or municipality.
Designated charities may claim input tax credits (ITCs) and input tax refunds (ITRs) for taxes paid or payable on expenses related to taxable services and calculate their net tax according to the general rules.