GST/HST Public Service Bodies Rebate

Transcription

1 GST/HST Public Service Bodies Rebate RC4034(E) Rev. 17

2 Is this guide for you? T his guide gives general information about how to calculate your goods and services tax/harmonized sales tax (GST/HST) public service bodies rebate or GST self-government refund and describes the different calculation methods you can use. It also explains how to complete your rebate application. GST/HST and Quebec In Quebec, Revenu Québec generally administers the GST/HST. If the physical location of your business is in Quebec, you have to file your returns with Revenu Québec using its forms, unless you are a person that is a selected listed financial institution (SLFI) for GST/HST or QST purposes or both. For more information, see the Revenu Québec publication IN-203-V, General Information Concerning the QST and the GST/HST, available at revenuquebec.ca, or call If you are an SLFI go to /slfi. If you are blind or partially sighted, you can get our publications in braille, large print, etext, or MP3 by going to /alternate. You can also get our publications and your personalized correspondence in these formats by calling This guide uses plain language to explain the most common tax situations. It is provided for information only and does not replace the law. La version française de ce guide est intitulée Remboursement de la TPS/TVH pour les organismes de services publics.

3 What s new? W e list the major changes below. This guide contains information based on amendments to the Excise Tax Act and Regulations. For more information on these and other changes, see the areas outlined in colour in this guide. Harmonized sales tax rate change for New Brunswick As of July 1, 2016, New Brunswick increased its harmonized sales tax rate to 15% (5% federal part and 10% provincial part). Harmonized sales tax rate change for Newfoundland and Labrador As of July 1, 2016, Newfoundland and Labrador increased its harmonized sales tax rate to 15% (5% federal part and 10% provincial part). Harmonized sales tax rate change for Prince Edward Island As of October 1, 2016, Prince Edward Island increased its harmonized sales tax rate to 15% (5% federal part and 10% provincial part). Point-of-sale rebates for Newfoundland and Labrador As of January 1, 2017, there is no longer a point-of-sale rebate on books in Newfoundland and Labrador. For more information, see the chart Qualifying items for the point-of-sale rebate on page 10. New rebate for printed books in Newfoundland and Labrador As of January 1, 2017, certain public service bodies may be eligible for a new rebate of the provincial part of the HST payable on printed books purchased in, imported, or brought into Newfoundland and Labrador. For more information, see Printed books on page 21. GST/HST public service bodies rebate If you are a municipality resident in Newfoundland and Labrador, the rebate rate for the provincial part of the HST paid or payable on eligible purchases and expenses is 25% for tax payable in 2016, and 57.14% for tax payable on or after January 1, Self-government refund As of April 5, 2016, the Tla amin First Nation has entered into a self-governing agreement with the Government of Canada. For more information, see Self-government refund on page 22. As of September 1, 2016, the Déline First Nation band and the Déline Land Corporation has entered into a self-governing agreement with the Government of Canada. For more information, see Self-government refund on page 22. Online services for business You can now sign up for online mail by entering an address when filing a GST/HST NETFILE return. To view your notices, statements, and letters from the CRA, log in to or register for My Business Account at /mybusinessaccount. To access our online services, go to: My Business Account at /mybusinessaccount, if you are a business owner; or Represent a Client at /representatives, if you are an authorized representative or employee. For more information, see Handling business taxes online on page 35. Online services for representatives Authorized representatives can now register for online mail on behalf of their business clients by entering an address when filing a GST/HST NETFILE return.

4 Table of contents Page Definitions... 5 What is the GST/HST?... 7 The business number... 7 Can you claim the public service bodies rebate?... 7 Are you a public service body that uses the special quick method of accounting?... 7 Other situations where another type of rebate may be available... 8 What can you claim?... 8 Eligible purchases and expenses... 8 Non-eligible purchases and expenses... 8 Rebate of the provincial part of the HST... 9 Point-of-sale rebates How do you claim the public service bodies rebate?.. 10 GST/HST registrants Do you have a branch or division that files separate GST/HST returns? Non-registrants Branches and divisions Filing deadlines for the public service bodies rebate How do you view your public service bodies rebate?.. 12 How do you make changes to a rebate application you already filed? Required documents Completing the public service bodies rebate application Part A Identification Business number Name and address Contact person Charity registration number Fiscal year-end Future applications Part B Claim period GST/HST registrants Non-registrants Part C Offset on GST/HST return Part D Details of claim Part E Certification Completing the provincial schedule Rebate factors and explanation of activity types Municipality Determined municipality Designated municipality University School authority Public college Hospital authority Page Facility operator External supplier Charity Are you a charity that is a GST/HST registrant? Qualifying non-profit organization Printed books Goods and services exported by a charity or a public institution Self-government refund How do you calculate the public service bodies rebate? What is non-creditable tax charged? How do you calculate non-creditable tax charged? Using the regular method to calculate your rebate Are you a resident of a non-participating province that buys property and services in a participating province? Did you buy goods in a participating province and bring them into another province? Did you buy services or intangible personal property in a participating province for use in another province? How do you calculate the amount of GST/HST included in a purchase price? Using the simplified method to calculate your rebate Claiming a rebate as a qualifying non-profit organization What qualifies as government funding? Who is a grantor? What amounts are included in total revenue? How do you calculate the percentage of government funding? Special rules for claimants with multiple activity types Are you a charity, public institution, or qualifying NPO that is also a selected public service body? Are you a selected public service body that acquires property or services for use by another selected public service body? Are you an organization that is more than one type of selected public service body? Special rules for claimants resident in more than one province Are you resident in more than one province and have a single activity type? Are you a resident in more than one province and have multiple activity types? Online services For more information

5 Definitions Capital property generally means: any depreciable property that is eligible or would be eligible for a capital cost allowance deduction for income tax purposes; and any property, other than depreciable property, which, if you disposed of it, would result in a capital gain or capital loss for income tax purposes. For GST/HST purposes, capital property does not include property in Class 12, 14, proposed new Class 14.1, or 44 of Schedule II to the Income Tax Regulations. Charity means a registered charity or registered Canadian amateur athletic association for income tax purposes, but does not include a public institution. A charity can issue official donation receipts for income tax purposes. For the purposes of the public service bodies rebate, a charity also includes a non-profit organization that operates, otherwise than for profit, a health-care facility whose purpose is to provide residents of the facility who have limited physical or mental capacity for self-supervision and self-care with the following: nursing and personal care under the direction or supervision of qualified medical and nursing care staff or other personal and supervisory care; assistance with the activities of daily living; social, recreational, and other related services to meet the psycho-social needs of the residents; and meals and accommodation. Claim period claim period of a person at any time means: where the person is at that time a registrant, the reporting period of the person that includes that time; and in any other case, the period that includes that time and consists of either: the first and second fiscal quarters in a fiscal year of the person; or the third and fourth fiscal quarters in a fiscal year of the person. Commercial activity means any business or adventure or concern in the nature of trade carried on by a person, but does not include: the making of exempt supplies; or any business or adventure or concern in the nature of trade carried on without a reasonable expectation of profit by an individual, a personal trust, or a partnership where all the members are individuals. Commercial activity also includes a supply of real property, other than an exempt supply, made by any person, whether or not there is a reasonable expectation of profit, and anything done in the course of making the supply or in connection with the making of the supply. Eligible activities for the purposes of the public service bodies rebate, refers to the making of facility supplies, ancillary supplies, or home medical supplies, or operating a qualifying facility to make facility supplies. Exempt supplies are supplies of property and services that are not subject to the GST/HST. GST/HST registrants generally cannot claim input tax credits to recover the GST/HST paid or payable on property and services acquired to make exempt supplies. However, as a public service body, you may be eligible to claim a GST/HST rebate of the tax paid or payable on expenses related to making exempt supplies. External supplier means a charity, a public institution or a qualifying non-profit organization (other than a hospital authority or a facility operator) that makes ancillary supplies, facility supplies, or home medical supplies. Facility operator means a charity, a public institution, or a qualifying non-profit organization (other than a hospital authority) that operates a qualifying facility. Hospital authority means an organization that operates a public hospital and that is designated by the Minister of National Revenue as a hospital authority for GST/HST purposes. Input tax credit (ITC) means a credit that GST/HST registrants can claim to recover the GST/HST paid or payable for property and services they acquired, imported into Canada, or brought into a participating province for use, consumption, or supply in the course of their commercial activities. Municipality means an incorporated city, town, village, metropolitan authority, township, district, county or rural municipality, or other incorporated municipal body however designated, and such other local authority that the Minister of National Revenue may determine to be a municipality. For the purposes of the public service bodies rebate, a municipality includes a person designated by the Minister of National Revenue to be a municipality, but only in respect of activities, specified in the designation, that involve the making of supplies (other than taxable supplies) by the person of municipal services. Non-profit organization (NPO) means a person (other than an individual, estate, trust, charity, public institution, municipality, or government) that meets the following conditions: It is organized and operated solely for non-profit purposes. It does not distribute or make available any of its income for the personal benefit of any proprietor, member, or shareholder, unless the proprietor, member, or shareholder is a club, a society, or an association that has, as its primary purpose and function, the promotion of amateur athletics in Canada. 5

6 Non-selected public service body activities are activities other than: those activities for which a person was designated as a municipality; or activities carried out in the course of: fulfilling responsibilities as a local authority; operating a public hospital, an elementary or a secondary school, a post-secondary college or technical institute, a recognized degree-granting institution or a college affiliated with, or research body of, such a degree-granting institution; or making facility supplies, ancillary supplies, or home medical supplies or operating a qualifying facility to make facility supplies. Participating province means a province that has harmonized its provincial sales tax with the GST to implement the harmonized sales tax (HST). Participating provinces include New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, and Prince Edward Island, but do not include the Nova Scotia offshore area or the Newfoundland offshore area except to the extent that offshore activities, as defined in subsection 123(1) of the Excise Tax Act, are carried on in that area. British Columbia was a participating province from July 1, 2010 until March 31, Person means an individual, a partnership, a corporation, the estate of a deceased individual, a trust, or any organization such as a society, a union, a club, an association, or a commission. Prescribed government organization generally refers to a Crown corporation that is organized and operated for non-profit purposes and is not entitled to claim relief of the GST/HST on its purchases. Property includes goods, real property, and intangible personal property such as trademarks, rights to use a patent, and admissions to a place of amusement, but does not include money. Public college means an organization that operates a post-secondary college or post-secondary technical institute that: receives funds from a government or a municipality to help the organization to continuously provide educational services to the general public; and the primary purpose of which is to provide programs of instruction in one or more fields of vocational, technical, or general education. Public institution means a registered charity for income tax purposes that is also a school authority, a public college, a university, a hospital authority, or a local authority determined by the Minister of National Revenue to be a municipality. Public service body means a charity, non-profit organization, municipality, university, public college, school authority, or hospital authority. Qualifying non-profit organization (qualifying NPO) means an NPO or prescribed government organization whose percentage of government funding is at least 40% of its total revenue. Real property includes: a mobile or floating home and any leasehold or ownership interest in such property; in Quebec, immovable property and every lease of such property; and in any other place in Canada, all land, buildings of a permanent nature, and any interest in real property. Registrant means a person that is registered or has to be registered for the GST/HST. School authority means an organization that operates an elementary or secondary school in which it provides instruction that meets the standards of educational instruction established by the government of the province or territory in which the school is operated. Selected public service body means: a school authority, a university, or a public college that is established and operated otherwise than for profit; a hospital authority; a municipality; a facility operator; or an external supplier. Specified person for the purposes of the rebate for printed books, means: a municipality; a university; a public college; a school authority; a charity, a public institution or a qualifying NPO that operates a public lending library; or a prescribed charity or a prescribed qualifying NPO whose primary purpose is the promotion of literacy. Supply means the provision of property or a service in any way, including sale, transfer, barter, exchange, licence, rental, lease, gift, or disposition. Taxable supplies are supplies of property and services that are made in the course of a commercial activity and are subject to the GST/HST (including zero-rated supplies). University means a recognized degree-granting institution or an organization that operates a college affiliated with, or a research body of, such an institution. Zero-rated supplies are supplies of property and services that are taxable at the rate of 0%. This means there is no GST/HST charged on these supplies, but GST/HST registrants may be eligible to claim ITCs for the GST/HST paid or payable on property and services acquired to provide these supplies. 6

7 What is the GST/HST? T he goods and services tax (GST) is a tax that applies to most supplies of goods and services made in Canada. The GST also applies to many supplies of real property (for example, land, building, and interests in such property) and intangible personal property such as trademarks, rights to use a patent, and digitized products downloaded from the Internet and paid for individually. The participating provinces harmonized their provincial sales tax with the GST to implement the harmonized sales tax (HST) in those provinces. Generally, the HST applies to the same base of property (for example, goods) and services as the GST. In some participating provinces, there are point-of-sale rebates equivalent to the provincial part of the HST on certain qualifying items. For more information, see Point-of-sale rebates on page 10. GST/HST registrants who make taxable supplies (other than zero-rated supplies) in the participating provinces collect tax at the applicable HST rate. GST/HST registrants collect tax at the 5% GST rate on taxable supplies they make in the rest of Canada (other than zero-rated supplies). Special rules apply for determining the place of supply. For more information on the HST and the place of supply rules, see Draft GST/HST Technical Information Bulletin B-103, Harmonized Sales Tax Place of supply rules for determining whether a supply is made in a province. The HST rate can vary from one participating province to another. For the list of all applicable GST/HST rates, go to /gsthst and select GST/HST calculator (and rates) under Tools. The business number T he business number (BN) identifies an organization and simplifies the way it deals with the Canadian government. Under a BN, you can have any accounts you may need, such as the following: registered charity; corporate income tax; payroll deductions; GST/HST; and import/export. Your GST/HST account number is your nine-digit BN with an RT program identifier followed by a four-digit reference number to identify each account you may have within the GST/HST program type. You will use this number when you claim your GST/HST rebates and file any GST/HST returns, if returns are required. If you do not already have a GST/HST account number when you claim a rebate, we will assign a BN with an RT program identifier to process any GST/HST rebates you may be entitled to. Branches and divisions that are authorized to file separate GST/HST returns and rebates will have the same BN as the head office; however, the four-digit reference number at the end will be different. For example, the head office may have RT0001 at the end of its BN and a branch could have RT0002. If you have a BN for purposes of claiming a rebate only, you are not considered to be a GST/HST registrant. Can you claim the public service bodies rebate? Y ou may be able to claim the public service bodies rebate of the GST or the federal part of the HST paid or payable on eligible purchases and expenses if you are any of the following: a charity; a qualifying non-profit organization (qualifying NPO); or a selected public service body. In some cases, you may also be able to claim a rebate of the provincial part of the HST. For more information, see Rebate of the provincial part of the HST on page 9. A person that is a listed financial institution or a registrant that is prescribed under the Games of Chance (GST/HST) Regulations cannot claim a public service bodies rebate. Any GST/HST paid or payable on eligible purchases and expenses made during your claim period qualifies for the rebate as long as you meet all the requirements for doing so (for example, becoming a registered charity under the Income Tax Act or meeting the 40% government funding requirement for a qualifying NPO) on the last day of the claim period or the fiscal year that includes that claim period. There may be situations where you have to calculate your public service bodies rebate using more than one rebate factor. See Special rules for claimants with multiple activity types on page 31 and Special rules for claimants resident in more than one province on page 33. Are you a public service body that uses the special quick method of accounting? The special quick method is another accounting method available to certain public service bodies that are registered for the GST/HST. Using the special quick method does not affect your public service bodies rebate entitlements and you still claim your rebate in the usual way. That is, you claim a rebate of the GST or the federal part of the HST paid or payable on all the eligible purchases and expenses you made during the claim period for which you cannot claim ITCs. 7

8 If you qualify for a rebate of the provincial part of the HST, claim it in the usual way (see Rebate of the provincial part of the HST on the next page). For more information, go to our webpage Special quick method of accounting for public service bodies. Other situations where another type of rebate may be available You may also qualify for a rebate if you are: a specified person claiming a rebate of the GST or the federal part of the HST you paid on books (see Printed books on page 21); a charity or a public institution claiming a rebate of the GST/HST paid on property or services exported outside of Canada (see Goods and services exported by a charity or a public institution on page 22); or an entity that has a self-government agreement that allows you a refund of the GST or the federal part of the HST on property and services you acquire for self-government activities (see Self-government refund on page 22). You may also be eligible to claim a rebate of the provincial part of the HST paid if you bought or acquired goods, services, or intangible personal property in a participating province for use outside the province. For more information, see Did you buy goods in a participating province and bring them into another province? and Did you buy services or intangible personal property in a participating province for use in another province? on page 26. If you have claimed, or are entitled to claim, another rebate of the GST/HST paid or payable, that amount must be deducted from your GST/HST paid or payable when calculating your public service bodies rebate. For more information, see What is non-creditable tax charged? on page 23. What can you claim? Y ou can claim a percentage of the amount of the GST/HST paid or payable on eligible purchases and expenses used in your organization s activities. The percentage you use depends on the type of organization you are, the activities you perform, and the province(s) in which you are resident. To find out when the public service bodies rebate may be available for the provincial part of the HST, see Rebate of the provincial part of the HST on the next page. Eligible purchases and expenses The GST/HST paid or payable on the following purchases and expenses may be eligible for the public service bodies rebate: general operating expenses, such as rent, utilities, and administration expenses, for which you cannot claim ITCs; most allowances and reimbursements you pay to employees involved in your exempt activities; property and services used, consumed, or supplied in your exempt activities; and capital property. However, you cannot claim the rebate when you change the use of capital property from primarily (more than 50%) in commercial activities to primarily in non-commercial activities. This is because you have to calculate the basic tax content of the property with such a change in use and the basic tax content formula already takes the public service bodies rebate into account. Non-eligible purchases and expenses The GST/HST paid or payable on certain purchases and expenses is not eligible for the public service bodies rebate. These purchases and expenses include: memberships in a club, the main purpose of which is to provide dining, recreational, or sporting facilities; tobacco products and alcoholic beverages you supply and for which you are not required to collect the GST/HST (except when the alcohol or tobacco is included in the price of a meal); property and services you acquire to provide long-term residential accommodation (one month or more), unless more than 10% of the accommodation is restricted to seniors, youths, students, or individuals with a disability or with limited financial resources who qualify for occupancy or reduced rents under a means or income test; property and services you acquire primarily (more than 50%) for the supply of a parking space made available to residential tenants unless more than 10% of the residential accommodation associated with the parking space is restricted to seniors, youths, students, or individuals with a disability or limited financial resources who qualify for occupancy or reduced rents under a means or income test; property and services acquired primarily for making a supply of real property to another person for use by that person in leasing residential property on an exempt basis (including incidental parking), unless that other person is a public service body and more than 10% of the residential property is restricted to seniors, youths, students, individuals with a disability, or individuals with limited financial resources who qualify for occupancy or reduced rents under a means or income test; 8

9 property or services you supply to another person, if the property or service is a taxable benefit to that person for income tax purposes, but you do not have to remit any GST/HST on the supply; property and services considered to be acquired by you acting as the operator of a joint venture (where an election has been filed) if any of the co-venturers would not be entitled to claim a public service bodies rebate if they were acquired by the co-venturer; and property and services you acquire to supply to an officer, employee, or member, or to another person related to that person, for personal use unless: you supply it for its fair market value in the same year you acquire it and tax is payable in respect of the supply; or you supply the good or service free of charge to the person and it is not a taxable benefit. Example A qualifying NPO owns an apartment building and rents 5% of the apartments on a long-term basis to individuals with a disability. As less than 10% of the apartment building is used as housing that is restricted to individuals with a disability, the NPO cannot claim a public service bodies rebate of a percentage of the GST/HST it pays or owes on its expenses incurred to maintain the apartment building, as they are not eligible expenses. Rebate of the provincial part of the HST You may be eligible for a public service bodies rebate of some of the provincial part of the HST paid or payable on eligible purchases and expenses if you are: a charity that is not a selected public service body and you are resident in one or more participating provinces; a qualifying NPO that is not a selected public service body and you are resident in one or more participating provinces; a facility operator or an external supplier resident in British Columbia, New Brunswick, Nova Scotia, or Ontario; a hospital authority resident in British Columbia, Nova Scotia, or Ontario; a school authority, university, or public college that is established and operated other than for profit resident in British Columbia, Nova Scotia, or Ontario; a municipality resident in British Columbia, New Brunswick, Newfoundland and Labrador, Nova Scotia, or Ontario; or The HST applies in British Columbia only after June 2010 and before April a selected public service body resident in Newfoundland and Labrador, or Prince Edward Island, that is also a charity, public institution, or qualifying NPO for non-selected public service body activities. s The municipality rebate factor for Newfoundland and Labrador only applies to claim periods that end on or after January 1, The rebate of the provincial part of the HST only applies in British Columbia to claim periods that end on or after July 1, 2010, and begin before April 1, In Prince Edward Island, this rebate only applies to claim periods that end on or after April 1, Special rules apply if you are resident in British Columbia, Prince Edward Island, or Newfoundland and Labrador and your claim period includes the previously mentioned HST transitional dates. If you are resident in more than one province, at least one of which is a participating province, calculate your public service bodies rebate for the provincial part of the HST based on the extent you intended to consume, use, or supply the eligible purchases and expenses in the course of your activities in each participating province that you are resident in. If you have multiple activity types in more than one participating province you have to calculate your rebate of the provincial part of the HST for each activity type for each participating province in which you are resident to the extent you intended to consume, use, or supply property or services in the course of your activities in each province that you are resident in. For more information, see Special rules for claimants with multiple activity types on page 31 and Special rules for claimants resident in more than one province on page 33. You may be resident in more than one province. You are considered to be resident in a province if you are resident in Canada and: if you are a corporation, your corporation is incorporated or continued under the laws of that province and not continued elsewhere; if you are a partnership, an unincorporated society, a club, an association or an organization, or a branch of such an organization, the member or the majority of the members having management and control is resident in that province; if you are a labour union, you are carrying on labour union activities in that province and have a local union or branch in that province; or in any case, you have a permanent establishment in that province. For example, if you have a permanent establishment in a participating province and another permanent establishment in a non-participating province, you would be considered resident in both provinces. For more information, see GST/HST Info Sheet GI-121, Determining Whether a Public Service Body is Resident in a Province for Purposes of the Public Service Bodies Rebate. 9

10 Point-of-sale rebates Vendors provide point-of-sale rebates for the provincial part of the HST on qualifying items, which are included in the following chart. On these items they only collect the 5% federal part of the HST payable. Qualifying items for the point-of-sale rebate British Columbia (July 2010 to March 2013) New Brunswick Newfoundland and Labrador (until December 31, 2016) Nova Scotia Ontario Prince Edward Island Books*, children s clothing and footwear, children s diapers, children s car seats, feminine hygiene products, and motor fuels Books* Books** Books*, children s clothing and footwear, and children s diapers Books*, children s clothing and footwear, children s diapers, children s car seats, qualifying newspapers, and qualifying food and beverages Books*, children s clothing and footwear, and qualifying heating oil * Books, for the point-of-sale rebate, include audio books, but not e-books, newspapers, magazines, catalogues, colouring books, agendas, etc. **As of January 1, 2017, the point-of-sale rebate on books is no longer available in Newfoundland and Labrador. However, certain public service bodies may be eligible for a rebate of the provincial part of the HST payable on books (even if they are not resident in Newfoundland and Labrador). For more information, see Printed books on page 21. A vendor s ability to claim ITCs would not be affected by crediting purchasers in this manner. If the vendor does not credit the point-of-sale rebate, the purchaser would be able to apply for a rebate of the provincial part of the HST using Form GST189, General Application for Rebate of GST/HST. You can only claim a public service bodies rebate of the federal part of the HST on these items. If HST taxable items and provincial point-of-sale rebate items are included on the same purchase invoice, you have to separate the federal part of the HST and the provincial part of the HST paid on that invoice in order to calculate the amounts on which the federal and provincial (if applicable) rebates can be claimed. For a detailed description of all the qualifying items and more information on the point-of-sale rebate, go to /gsthstpub, and see the following publications: GST/HST Info Sheet GI-060, Harmonized Sales Tax for Ontario Point-of-Sale Rebate on Newspapers; GST/HST Info Sheet GI-063, Point-of-Sale Rebate on Children's Goods; GST/HST Info Sheet GI-064, Harmonized Sales Tax for Ontario Point-of-Sale Rebate on Prepared Food and Beverages; GST/HST Info Sheet GI-065, Point-of-Sale Rebate on Books; GST/HST Info Sheet GI-169, Point-of-Sale Rebate on Heating Oil; and Guide RC4033, General Application for GST/HST Rebates ( Reason code 16 ). Example Marie s Daycare is a charity that runs a daycare centre. Marie s Daycare purchases books and pencils from Jackson s Bookstore in Ontario. Jackson s Book Store Books $ Pencils $ Subtotal $ HST $ 7.82 Total amount due $ Marie s Daycare received a point-of-sale rebate of the provincial part of the HST on the books; therefore, only the federal part of the HST was paid: $ % = $6.00 Marie s Daycare paid HST on the pencils: $ % = $1.82 Marie s Daycare will have to track these amounts separately as the tax paid on each will have to be separated when making the public service bodies rebate claim. How do you claim the public service bodies rebate? T o file your first rebate application, use Form GST66, Application for GST/HST Public Service Bodies Rebate and GST Self-Government Refund, and, if applicable, Form RC7066-SCH, Provincial Schedule GST/HST Public Service Bodies Rebate. After we process your first rebate application, we will send you Form GST284, Application for GST/HST Public Service Bodies Rebate and GST Self-Government Refund, and Form GST284-SCH, Provincial Schedule GST/HST Public Service Bodies Rebate, which are personalized versions of Form GST66 and Form RC7066-SCH, for your next application. For more information, see Completing the public service bodies rebate application on page 12 and Completing the provincial schedule on page 13. Keep this guide to help you complete future rebate applications. 10

11 GST/HST registrants If you are a GST/HST registrant, you can complete one rebate application for each reporting period. If you are filing your return electronically, you can also file your rebate application electronically using: GST/HST NETFILE; My Business Account at /mybusinessaccount, if you are a business owner; or Represent a Client at /representatives, if you are an authorized representative or employee. If you are claiming the amount of your rebate on line 111 of a GST/HST return that you are filing electronically and you choose not to file your rebate application electronically, you have to send it to the address on the rebate form no later than the day you file your return. If you are claiming the amount of your rebate on line 111 of a GST/HST return that you are not filing electronically, you have to send your rebate application with that paper return. Do you have a branch or division that files separate GST/HST returns? If you have a branch or division that files its own GST/HST returns, it also has to file separate rebate applications using the same filing frequency as the head office. If a branch or division is not authorized to file separate GST/HST returns and rebate applications, include its rebate claims on the head office s application. To find out how to apply for authorization to file separate rebate applications and returns, see Branches and divisions on this page. Non-registrants If you are not a GST/HST registrant, you have two claim periods per fiscal year (the first six months and the last six months of your fiscal year). To claim the public service bodies rebate, you must file one rebate application for each claim period in which you are eligible for a public service bodies rebate. You can file your rebate application electronically using our online services in: My Business Account at /mybusinessaccount, if you are a business owner; or Represent a Client at /representatives, if you are an authorized representative or employee. If you choose to file a paper rebate application, mail your completed rebate application to the address indicated on the form. File only one rebate application for your whole organization unless you have received authorization for a branch or division to file separate rebate applications. An authorized branch or division has to file its own rebate applications. For more information, see Branches and divisions on this page. Branches and divisions If your organization has a branch or division, the head office can apply for authorization to allow the branch or division to file its own rebate applications, separate from the head office. As a branch or division of an organization, the claim period and filing frequency of the rebate application must be the same as your parent/primary organization. To be eligible, the branch or division has to be identified separately from the head office by its location or the nature of its activities, and it must have its own separate books and records. To apply for authorization, the head office has to complete Form GST10, Application or Revocation of the Authorization to File Separate GST/HST Returns and Rebate Applications for Branches or Divisions. If your organization receives this authorization and is a GST/HST registrant, the authorized branch or division also has to file its own GST/HST returns, separate from the head office. Each branch or division that we authorize will use the head office s business number (BN) when it applies for its rebate; however, the four-digit reference number at the end of the BN will be different to identify it as a branch. For example, the head office may have RT0001 at the end of its BN and a branch or division may have RT0002. We will inform the head office of these numbers and the date when the branches or divisions can begin filing their separate rebate applications. Branches or divisions have to use their BN on all their rebate applications and correspondence. If a branch or division is not authorized to file separate GST/HST rebate applications, include its rebate claims on the head office s application. Filing deadlines for the public service bodies rebate If you are a GST/HST registrant, you have up to four years from the due date of your GST/HST return for the claim period in which you incurred the expense to file a rebate application. If you are not a GST/HST registrant, you have up to four years from the last day of the claim period in which you incurred the expense to file a rebate application. Exception to the four-year limit When the supplier is assessed for tax that was not collected from you during the period, and you then pay the tax after the four-year limitation, you can complete a separate rebate application to cover that claim period. Filing deadline for claimants resident in British Columbia British Columbia is no longer a participating province effective April 1, If you are resident in British Columbia, all applications for public service bodies rebates of the provincial part of the HST must only relate to HST paid or payable before this date. 11

12 If you are a GST/HST registrant, a public service bodies rebate application for a claim period that includes March 31, 2013, must be sent to us no later than four years after the due date for filing your GST/HST return that includes that date. For example, a rebate application that covers an annual claim period of March 1, 2013 to February 28, 2014, must be sent to us no later than May 31, If you are not a GST/HST registrant, a public service bodies rebate application for a claim period that includes March 31, 2013, must be sent to us no later than four years after the last day of the claim period in which the expenses were incurred. How do you view your public service bodies rebate? You can view a summary of your assessed public service bodies rebate or view the status of your public service bodies rebate using our online services in: My Business Account at /mybusinessaccount, if you are a business owner; or Represent a Client at /representatives, if you are an authorized representative or employee. How do you make changes to a rebate application you already filed? If you need to change a rebate that you have already filed, you can: use our online services in My Business Account at /mybusinessaccount or Represent a Client at /representatives; send us a letter indicating the change. Required documents Do not send any documents with your application (unless you are a non-profit organization (NPO) sending Form GST523-1, Non-profit organizations Government Funding, to update your eligibility as a qualifying NPO). However, you have to keep adequate books and records, including original invoices, for six years from the end of the year they relate to in case we ask to see them. Completing the public service bodies rebate application A ll claimants have to complete Parts A, B, D, and E of the Form GST66, Application for GST/HST Public Service Bodies Rebate and GST Self-Government Refund, or Form GST284, Application for GST/HST Public Service Bodies Rebate and GST Self-Government Refund. Complete Part C only if you are a GST/HST registrant and you want to claim your rebate on line 111 of your GST/HST return (see Part C Offset on GST/HST return on the next page). If you have a business number for purposes of claiming a rebate only, you are not considered to be a GST/HST registrant. If you are claiming a rebate of the provincial part of the HST, you must also complete Form RC7066-SCH, Provincial Schedule GST/HST Public Service Bodies Rebate or GST284-SCH, Provincial Schedule GST/HST Public Service Bodies Rebate, and attach it to your application. For more information, see Completing the provincial schedule on the next page. Incomplete or incorrect information may cause a delay in processing your application. Part A Identification Business number Print your full business number (BN), including the complete RT program identifier with four-digit reference number at the end, in the space provided on all of your applications. Also print it on all of your correspondence with us. If you do not have a BN, we will assign one to you with your first application. Name and address Enter the complete name (and any operating or trade name) and the mailing address of your organization. Enter your physical location if it is different from the mailing address. We will send all correspondence and cheques to your mailing address. Contact person Enter the name and telephone number of the person in your organization who we can contact if we need more information about your application. If you want us to deal with the contact person as your representative for your business account related information, we need your consent. You can give this consent online by using My Business Account at /mybusinessaccount or by sending us a completed Form RC59, Business Consent. Charity registration number Enter the charity registration number assigned to you as a charity under the Income Tax Act, if applicable. This number is your BN plus an RR program identifier. Fiscal year-end Enter your fiscal year-end. If your organization is a non-registrant, its fiscal year-end determines its claim periods for filing rebate applications. For more information, see Non-registrants on the next page. 12

13 Future applications After we receive your first public service bodies rebate application, we will start sending you Form GST284, Application for GST/HST Public Service Bodies Rebate and GST Self-government Refund, and Form GST284-SCH, Provincial Schedule GST/HST Public Service Bodies Rebate, which are personalized rebate applications, for all of your future claims. The personalized form will have most of the Part A information pre-printed. You will only need to enter the charity registration number (if applicable) and your fiscal year-end. However, you should review the pre-printed information to be sure it is accurate. To tell us about changes, use the notification of change area on the envelope that we send your application in. Part B Claim period GST/HST registrants Enter the claim period of your application. Your claim periods are the same as your reporting periods for your GST/HST returns. You file your applications with the same frequency as your GST/HST returns (monthly, quarterly, or annually). Non-registrants Enter the claim period of your application. Your claim period has to be a six-month period covering either the first six months or the last six months of your fiscal year. You cannot claim a rebate more than twice a year. For example, a non-registrant organization with a December 31 fiscal year end can file one rebate application for the period from January 1 to June 30 and another for the period from July 1 to December 31 in each fiscal year. Part C Offset on GST/HST return This part applies to GST/HST registrants only. Tick yes or no to show whether you want to include the total amount claimed from line 409 of the application on line 111 of your GST/HST return. When you transfer the line 409 amount from your application to line 111 of your GST/HST return, you use your rebate to reduce any amount you owe on your return, or to increase any refund. Enter the period end date of that return in the space provided on the rebate application. Send your rebate application with your GST/HST return. If you are filing your return electronically, you can also file your rebate application electronically using: GST/HST NETFILE; My Business Account at /mybusinessaccount, if you are a business owner; or Represent a Client at /representatives, if you are an authorized representative or employee. If you choose not to file your rebate application electronically, you have to send your rebate application to the address on the rebate form no later than the day you electronically file your return. If you have an amount owing on a GST/HST return, even after using your rebate to reduce the amount you owe, make sure we receive the return, rebate application, and remittance by the due date of the return to avoid being charged a penalty for late-filing and interest on the amount owing. Part D Details of claim Complete the table in Part D by entering the amount of the rebate you are claiming for each activity you perform on the applicable line(s). The lines that apply to you depend on your activity type. For information on the different activity types and the corresponding rebate factors, see Rebate factors and explanation of activity types on the next page. Part E Certification An authorized person from your organization has to sign and date every application and provide a telephone number. Completing the provincial schedule C omplete Form RC7066-SCH, Provincial Schedule GST/HST Public Service Bodies Rebate or GST284-SCH, Provincial Schedule GST/HST Public Service Bodies Rebate, to claim a rebate of the provincial part of the HST. Complete only the lines that apply to your province(s) of residence and your activity type(s). The total provincial amount claimed on the provincial schedule is entered on line B of Part D of the rebate application (Form GST66 or Form GST284). For information on the different activity types and the corresponding rebate factors, see Rebate factors and explanation of activity types on the next page. Attach a copy of the provincial schedule, Form RC7066-SCH or GST284-SCH, to your application and send both to us. If you are a GST/HST registrant and you are claiming your rebate on your GST/HST return, send the provincial schedule and the application with your return. If you are filing your return electronically, you can also file your rebate application and provincial schedule electronically using: GST/HST NETFILE; My Business Account at /mybusinessaccount, if you are a business owner; or Represent a Client at /representatives, if you are an authorized representative or employee. If you choose not to file electronically, send us a paper copy of your rebate application and the provincial schedule. 13