On April 6, 2016, the CRA released a number of GST/HST Info Sheets regarding the Public Service Bodies’ (“PSB”) Rebate that may be claimed by charities and qualifying non-profit organizations (“NPOs”). As a general overview, charities and qualifying NPOs may be able to recover a percentage of the Goods and Services Tax (“GST”) and/or the federal part of the Harmonized Sale Tax (“HST”) paid or payable on its eligible purchases and expenses by claiming a PSB rebate. In addition, a charity or qualifying NPO resident in a participating province may also be able to claim a PSB rebate to recover a percentage of the provincial part of the HST paid or payable on its eligible purchases and expenses.
Through the various Info Sheets, the CRA has provided guidance on how a number of scenarios are to be addressed based upon a charity’s or qualifying NPO’s province of residence. For those charities and qualifying NPOs that are resident in only one participating province, then they should use the applicable Info Sheet for Prince Edward Island, Ontario, Nova Scotia, Newfoundland and Labrador, New Brunswick or British Columbia (GI 172 to 177 for charities and GI 180 to 185 for qualifying NPOs). (Note: British Columbia was a participating province from July 1, 2010 until March 31, 2013, meaning charities and qualifying NPOs in British Columbia may only apply for a PSB rebate for claim periods within these dates. Similarly, Prince Edward Island only became a participating province on April 1, 2013, meaning that the PSB rebate in Prince Edward Island is only available for claims that end on or after this date.)
Alternatively, where a charity or qualifying NPO is resident in one or more non-participating provinces and is not resident in a participating province, then it should use the applicable Info Sheet GI 178 or GI 186. However, where a charity or qualifying NPO is resident in two or more provinces, at least one of which is a participating province, then it should use the applicable Info Sheet GI 179 or GI 187. These Info Sheets are helpful to this type of charity and qualifying NPO applying for the PSB rebate by breaking down the process into the various steps necessary to determine whether the PSB rebate applies and, if so, how to do its In addition, these particular Info Sheets contain a number of illustrative examples regarding calculation of the PSB rebate at the different stages in the process.