The following rules apply if, as a public service body, you claim input tax credits (ITCs) and input tax refunds (ITRs) for an immovable (real property):

• If an immovable's percentage of use in commercial activities is more than 50%, you may claim an ITC and an ITR equal to the full amount of the GST and QST paid.
• If the percentage of use in commercial activities is 50% or less, you may not claim an ITC or an ITR.

Change in use of an immovable

The use of an immovable may change over the years. If an immovable that was used in a proportion of more than 50% in your exempt activities is now used primarily in your commercial activities, you may claim ITCs and ITRs. On the other hand, if an immovable that was used in a proportion of more than 50% in your commercial activities is now used primarily in your exempt activities, you may have to remit the ITCs or ITRs you claimed earlier.

For information on the rules that apply in such situations, refer to Change in Use.