Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 11th floor
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 126881
Business Number: […]
Dear [Client]:
Subject: GST/HST RULING
Eligibility to claim an 83% public service bodies’ rebate
Thank you for your letters of [mm/dd/yyyy], with attachments, concerning […] (the Corporation) [and its] eligibility to claim the 83% public service bodies’ (PSB) rebate of the goods and services tax (GST) and the federal part of the harmonized sales tax (HST), and an 87% PSB rebate of the provincial part of the HST under section 259 of the Excise Tax Act (ETA) in respect of its activities. We apologize for the delay in our response.
The HST applies in the participating provinces at the following rates: 13% in Ontario; and 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. The GST applies in the rest of Canada at the rate of 5%.
All legislative references are to the ETA unless otherwise specified.
STATEMENT OF FACTS
We understand the facts to be:
1. The Corporation is a registered charity within the meaning assigned to that expression by subsection 248(1) of the Income Tax Act, and is a charity for purposes of the ETA. […]
2. […][Information about the Corporation]
3. […]
4. The Corporation operates […][X] […]
5. […]
6. […]
7. […]
8. […]
9. Individuals wishing to apply for admission to […][X] must contact their regional Community Care Access Centre (CCAC). CCACs are local organizations that were established by the MOHLTC and perform the function of assessing the needs of people to determine the type of care and services required, and admission to long-term care facilities. The CCAC determines eligibility and if granted, an individual can choose from a list of Long-Term Care Homes, […].
10. The MOHLTC website, since updated, provided information on care services, long-term care homes and support services, such as:
“Residential care services provide a place for seniors to live, and offer different types and levels of support. In Ontario, there are three main types of residential care: supportive housing, retirement homes and long-term care homes”.
“Long-Term Care Homes are designed for people who need access to 24-hour nursing care, supervision or higher levels of personal care. These homes are also known as nursing homes, municipal homes for the aged, or charitable homes. Residents pay for accommodation charges and the care is funded by the Ministry of Health and Long-Term Care.”
“Long-Term Care Homes are places where seniors can live and receive support services. They are often the right choice for seniors who need help with the activities of daily living, access to 24-hour nursing care or supervision in a secure setting.”
“In general, Long-Term Care Homes offer higher levels of personal care and support than those typically offered by either retirement homes or supportive housing.”
“The requirements in the LTCHA ensure that residents of these homes receive safe, consistent, and high-quality resident-centred care in settings where residents feel at home, are treated with respect, and have the supports and services they need for their health and well-being.”
“All Long-Term Care Homes offer 24-hour supervision and nursing care.”
“Homes must prepare a "plan of care" for each resident, outlining the care requirements and levels of service offered. This plan must be reviewed at least every three months and adapted as the needs of the resident change.”
11. In-house employees providing health care services at [X] include Registered Nurses (RNs), Registered Practical Nurses (RPNs), and health care aides. Visiting health care providers include doctors, physiotherapists, […].
Residents receive medical treatments and care from qualified medical staff, such as doctors and nurses. […][Residents of X include] frail, sick and dependent […][individuals] who have been assessed by the local CCAC through a standardized process as deemed in need of nursing care and medical attention. The multidisciplinary care teams consist of medical doctors, RNs, RPNs, personal support workers and other paramedical professionals such as physiotherapists, dietician, pharmacist, consulting geriatrician and psychiatrist, dentist and other specialists on referral basis.
12. Health care services provided at [X] generally include:
-
24-hour nursing services and assistance with daily living
-
daily physician’s services and visit for each resident
-
[…][other health care services]
-
[…]
13. Medically necessary health care services that residents receive at [X] include the provision of medication and its regular monitoring. An annual examination is provided to residents. […][Some other health care services are also provided at X]
Physician services are provided on an ongoing, continual basis in that physicians regularly visit and provide 24-hour on-call services. All residents of [X] have a physician on-call at all times.
On site procedures that physicians perform include physical examinations, ordering of x-rays, and request of blood work for diagnosis.
14. Medical services provided by physicians for the residents, and work that physicians perform […] include the following:
- all residents, upon admission are assigned to a designated physician as their attending family doctor;
- the attending physician will look after the residents’ on-going medical concerns/illness, treatment, medication prescription, providing physician orders for care, specialist referrals;
- the physicians provide weekly rounds to residents and medical attentions to individuals needing medical consultation and/or treatment;
- 24-hours, 7-day on-call roster for urgent/immediate medical consultation and direction;
- […]
15. The Corporation’s […] Manual describes the applicable roles and responsibilities of the […] Attending Physicians [at X]:
[…][Description of the roles and responsibilities of the Attending Physicians] […]
16. […][As] required by the MOHLTC Program Manual [the Corporation has an agreement with the physicians attending at [X]]. The agreement, […], indicates in part that the physician shall:
[…][Description of the Corporation’s agreement with the physicians attending at [X]]
17. The Corporation’s […] Manual describes the roles and responsibilities of the Medical Director [at X]:
[…][Description of the roles and responsibilities of the Medical Director]
18. […], there are [#] physicians serving [X] […]. Although residents are assigned a physician, they can meet with other physicians on an as-needed basis.
19. Each patient has a patient chart/resident file. As well, each physician has a Doctor’s Communication book that is maintained by the nursing staff that the physicians review regularly. The book is also for others as well (e.g., dieticians). The Doctor’s Communication book contains a list of issues pertaining to residents (e.g., behavioural, dietary, physical) requiring the attention of the physician during the next visit to the Facility. A typical entry in the Doctor’s Communication book is a request that the physician assess a resident regarding a rash or other medical issue.
20. Care plans are completed by Attending Physicians, as well as by nursing staff, dietician, and physiotherapist (multi-disciplinary). The care plan includes a series of services, actions, operations or events determined by the Attending Physician to be medically necessary to maintain a resident’s health – all staff can go to the care plan and update. Resident care plan entries include those regarding the resident’s medical history, medications and other health care aspects (e.g., physiotherapy, lab work), the resident’s dietary, behavioural, and social needs and the resident’s requirements regarding the activities of daily living.
21. Residents who take medication are required to have their medication adjusted frequently. Each medication adjustment must be ordered by a physician.
Residents that are insulin dependent have their blood work reviewed a few times a week and each test is reviewed and signed by a physician. Blood must be checked regularly. The physician orders the blood test and a lab will come to do the blood work. The results go to nurses, who inform the physician, who determines changes to resident medication. Nurses can’t make such changes of orders on their own.
22. In regard to nursing staff, the Corporation has […] nurses […]. These numbers include full-time, part-time, and casual. There is always at least 1 RN on duty at all times […].
Nurses contact the on-call physicians regularly regarding changes in medication, test results, orders, and glucose scans for residents under their care. Nursing staff spend significant time for phone consultations with Attending Physicians to discuss change in orders, etc.
23. […][Information about nursing services provided at X]
24. In addition to 7-day, 24-hour nursing services, [X] constantly […][provides] special programs to allow residents to enjoy a high quality of life.
25. To deal with residents with medically unstable conditions, unmanageable symptoms and who are seeking or requiring medical interventions, [X] […][has] palliative care […]
26. […][Information about Agreements for other programs and services provided at X]
27. […][Information about Reports on Staffing levels]
28. The Corporation is funded by the MOHLTC […].
[…][More details about funding]
[…]
29. The Corporation is resident only in the Province of Ontario.
RULING REQUESTED
You would like to know whether the Corporation is entitled to claim an 83% PSB rebate of the GST and the federal part of the HST and, as a person resident in Ontario, an 87% rebate of the provincial part of the HST, as a facility operator.
RULING GIVEN
Based on the facts set out above, we rule that the Corporation is a facility operator making facility supplies […].
As such, the Corporation is eligible to claim an 83% PSB rebate of the GST and the federal part of the HST paid or payable on eligible purchases and expenses to the extent that it intended to consume, use or supply the property or service in the course of activities engaged in by it in the course of operating [X] for use in making facility supplies, or in the course of making facility supplies.
In addition, as the Corporation is resident only in Ontario, it is also eligible for an 87% PSB rebate of the provincial part of the HST paid or payable on eligible purchases and expenses to the extent that it intended to consume, use, or supply the property or service in the course of its activities engaged in Ontario in the course of operating [X] for use in making facility supplies, or in the course of making facility supplies.
This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed. We understand that the Corporation has filed a Notice of Objection on an assessment and we are copying this response to the Appeals Branch.
EXPLANATION
To be eligible for an 83% PSB rebate of the GST and the federal part of the HST, and in the case of a person resident in Ontario, an 87% PSB rebate of the provincial part of the HST (hereafter these two rebates will be referred to as the “83% (and 87%) PSB rebate”), paid or payable on its purchases and expenses related to the making of facility supplies, the person must be a “hospital authority”, a “facility operator” or an “external supplier”.
Hospital Authority
A “hospital authority” is defined in subsection 123(1) as “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.
The Corporation does not operate a public hospital and is not designated as a hospital authority, and as such it is not a “hospital authority”.
Therefore, to determine whether there is eligibility for the 83% (and 87%) PSB rebate, it is necessary to determine whether the Corporation is a “facility operator” or an “external supplier”.
Facility Operator
A “facility operator” is defined in subsection 259(1) as meaning “a charity, a public institution or a qualifying non-profit organization (other than a hospital authority), that operates a qualifying facility”.
As the Corporation is a charity, it meets the first requirement of the definition. In order to meet the second requirement, the Corporation must operate a “qualifying facility”.
Subsection 259(2.1) sets out three criteria that must be met for a facility, or part of a facility, other than a public hospital, to be a qualifying facility, for a fiscal year, or any part of a fiscal year, of the operator of the facility or part.
A facility or part of a facility will be considered a qualifying facility if:
(a) supplies of services that are ordinarily rendered during that fiscal year or part to the public at the facility or part would be facility supplies if the references in the definition of “facility supply” in subsection 259(1) to “public hospital or qualifying facility” were references to the facility or part;
(b) an amount, other than a nominal amount, is paid or payable to the operator as qualifying funding in respect of the facility or part for the fiscal year or part; and
(c) an accreditation, licence or other authorization that is recognized or provided for under a law of Canada or a province in respect of facilities for the provision of health care services applies to the facility or part during that fiscal year or part.
The requirements contained in (a) to (c) above must be met in order for a particular facility to be a “qualifying facility” for purposes of section 259. A discussion of these requirements follows.
Facility Supply
Subsection 259(1) defines the term “facility supply” as
“an exempt supply (other than a prescribed supply) of property or a service in respect of which
(a) the property is made available, or the service is rendered, to an individual at a public hospital or qualifying facility as part of a medically necessary process of health care for the individual for the purpose of maintaining health, preventing disease, diagnosing or treating an injury, illness or disability or providing palliative health care, which process
(i) is undertaken in whole or in part at the public hospital or qualifying facility,
(ii) is reasonably expected to take place under the active direction or supervision, or with the active involvement, of
(A) a physician acting in the course of the practise of medicine,
(B) a midwife acting in the course of the practise of midwifery,
(C) if a physician is not readily accessible in the geographic area in which the process takes place, a nurse practitioner acting in the course of the practise of a nurse practitioner, or
(D) a prescribed person acting in prescribed circumstances, and
(iii) in the case of chronic care that requires the individual to stay overnight at the public hospital or qualifying facility, requires or is reasonably expected to require that
(A) a registered nurse be at the public hospital or qualifying facility at all times when the individual is at the public hospital or qualifying facility,
(B) a physician or, if a physician is not readily accessible in the geographic area in which the process takes place, a nurse practitioner, be at, or be on-call to attend at, the public hospital or qualifying facility at all times when the individual is at the public hospital or qualifying facility,
(C) throughout the process, the individual be subject to medical management and receive a range of therapeutic health care services that includes registered nursing care, and
(D) it not be the case that all or substantially all of each calendar day or part during which the individual stays at the public hospital or qualifying facility is time during which the individual does not receive therapeutic health care services referred to in clause (C), and
(b) if the supplier does not operate the public hospital or qualifying facility, an amount, other than a nominal amount, is paid or payable as medical funding to the supplier.”
A “physician” is defined in subsection 259(1) as “a person who is entitled under the laws of a province to practise the profession of medicine”.
The definition of “facility supply” is to be applied on a supply-by-supply basis. To be a “facility supply”, the property made available or the service rendered to an individual at the public hospital or qualifying facility must be an exempt supply (other than a prescribed supply). Exempt supplies are listed in Schedule V to the ETA.
Section 1 of Part V.1 of Schedule V exempts supplies of property or a service made by a charity unless specifically excluded under paragraphs (a) to (p) of that section. As the Corporation is a charity, the supplies it makes to the residents would generally be exempt under section 1 of Part V.1 of Schedule V.
Section 2 of Part II of Schedule V exempts a supply of an institutional health care service made by the operator of a health care facility if the institutional health care service is rendered to a patient or resident of the facility. The terms “institutional health care service” and “health care facility” are defined in section 1 of Part II of Schedule V. This section may also apply to exempt supplies of services that the Corporation makes.
Paragraph (a), subparagraphs (a)(i) and (a)(ii), and clause (a)(ii)(A) of the definition of “facility supply” further require that the exempt supply of property be made available, or the exempt supply of a service be rendered, at a public hospital or qualifying facility and be part of a medically necessary process of health care for an individual for the purpose of maintaining health, preventing disease, diagnosing or treating an injury, illness or disability or providing palliative care. This process must be undertaken in whole or in part at the public hospital or qualifying facility and reasonably be expected to take place under the active direction or supervision, or with the active involvement, of a physician acting in the course of practise of medicine (or in certain circumstances, a midwife, a nurse practitioner or a prescribed person in prescribed circumstances).
In circumstances where chronic care requires the individual to stay overnight at the public hospital or qualifying facility, the definition of “facility supply” in subsection 259(1) provides that the process must require, or reasonably be expected to require, the additional elements referred to in clauses (a)(iii)(A) to (D) of the definition of “facility supply”. That is, a registered nurse must be at the public hospital or qualifying facility at all times when the individual is there; a physician or, if a physician is not readily accessible in the geographic area in which the process takes place, a nurse practitioner, must be at, or be on-call to attend at, the public hospital or qualifying facility at all times when the individual is there; the individual must be subject to medical management and receive a range of therapeutic health care services that includes registered nursing care; and it must not be the case that all or substantially all of each calendar day or part during which the individual stays at the public hospital or qualifying facility is time during which the individual does not receive therapeutic health care services.
The decision of the Tax Court of Canada in Elim Housing Society v The Queen (2013-148(GST)G) addressed the question as to whether Elim Housing Society (Elim) was a facility operator operating a qualifying facility. In this decision, the judge made the determination that Elim was entitled to claim the 83% PSB rebate as a facility operator operating a qualifying facility based on the presence of the following elements which indicated Elim to be making facility supplies:
- all of the residents of Elim’s facility had conditions that required “complex care” as that term was defined in a policy manual of the B.C. Ministry of Health Services;
- the residents were extremely dependent on care either by reason of mental or physical impairment, or both;
- residents were under the care of a physician, who was either associated with the facility or had a pre-existing relationship with the resident;
- a tailored care plan was created for each resident, documented and implemented:
- detailed records were kept on the implementation of the care plans,
- medication reviews were required every six months, and
- inter-disciplinary meetings were held annually;
- physicians visited residents frequently (e.g., roughly on a bi-weekly basis);
- physicians were at, or on-call to attend, the facility at all times;
- physicians provided substantial medical care (e.g., addressed medical concerns, participated in medication reviews, attended interdisciplinary meetings);
- registered nurses were at the facility at all times, and nurses were in regular communication with physicians for prescription or advice;
- the facility received funding for 2.8 hours of care per resident per day (the calculation was based on scheduled staffing hours); and
- the care provided was of a different type than ordinary assistance with activities of daily living that a more robust individual might require.
After comparing the services and the care provided by the Corporation at [X] to its residents with the elements described in Elim, we are of the view that facility supplies are provided at [X] by the Corporation.
As mentioned above, subsection 259(2.1) sets out three criteria that must be met in order for a facility or part of a facility to be considered a qualifying facility for all or part of a fiscal year. The first criterion that must be met, under paragraph 259(2.1)(a), is that the exempt supplies made at the qualifying facility must be facility supplies. The exempt supplies that are facility supplies made by the Corporation would meet this first criterion.
Qualifying Funding
The second criterion that must be met under paragraph 259(2.1)(b) for a facility to be a “qualifying facility” is that an amount, other than a nominal amount, is paid or payable to the operator as qualifying funding in respect of the facility or part for the fiscal year or part.
Subsection 259(1) defines “qualifying funding” of the operator of a facility for all or part of a fiscal year of the operator as meaning
“a readily ascertainable amount of money (including a forgivable loan but not including any other loan or a refund, remission or rebate of, or credit in respect of, taxes, duties or fees imposed under any statute) that is paid or payable to the operator in respect of the delivery of health care services to the public for the purpose of financially assisting in operating the facility during the fiscal year or part, as consideration for an exempt supply of making the facility available for use in making facility supplies at the facility during the fiscal year or part or as consideration for facility supplies of property that are made available, or services that are rendered, at the facility during the fiscal year or part and is paid or payable by
(a) a government, or
(b) a person that is a charity, a public institution or a qualifying non-profit organization
(i) one of the purposes of which is organizing or coordinating the delivery of health care services to the public, and
(ii) in respect of which it is reasonable to expect that a government will be the primary source of funding for the activities of the person that are in respect of the delivery of health care services to the public during the fiscal year of the person in which the supply is made.”
The Province of Ontario (through the MOHLTC) is the main source of funds for the operation of [X], […][More details about funding].
This criterion is thus satisfied.
Accreditation, licence or other authorization
The third criterion that must be met under paragraph 259(2.1)(c) for a facility, or part of a facility, other than a public hospital, to be a qualifying facility for a fiscal year, or any part of a fiscal year of the operator of the facility, or part, is that an accreditation, licence or other authorization that is recognized or provided for under a law of Canada or a province in respect of facilities for the provision of health care services applies to the facility or part during that fiscal year or part.
[…]. The Corporation is [appropriately licensed by the MOHLTC pursuant to the Long Term Care Homes Act, 2007], [and is] therefore, […][authorized to operate a long-term care home].
Thus the third criterion that must be met under paragraph 259(2.1)(c) […] is satisfied.
Overall summary
To summarize, […][X] […][meets] all of the requirements of paragraphs (a) to (c) of the definition of “qualifying facility” in subsection 259(2.1) and, as a result, the Corporation is a facility operator for purposes of section 259. Accordingly, the Corporation is entitled to an 83% PSB rebate of the GST and the federal part of the HST paid or payable on eligible purchases and expenses to the extent that it intended to consume, use or supply the property or service in the course of activities engaged in by the Corporation in the course of operating [X] for use in making facility supplies, or in the course of making facility supplies.
In addition, as the Corporation is resident only in Ontario, it is also eligible for an 87% PSB rebate of the provincial part of the HST paid or payable on eligible purchases and expenses to the extent that it intended to consume, use, or supply the property or service in the course of activities engaged in Ontario in the course of operating [X] for use in making facility supplies, or in the course of making facility supplies.
For supplies that the Corporation makes which are not facility supplies, the 83% (and 87%) PSB rebate may still be available if the supplies are “ancillary supplies” or “home medical supplies”.
As the Corporation is a facility operator, it is not an external supplier, since the definition of “external supplier” in subsection 259(1) excludes a facility operator.
As there is no indication that the Corporation is involved in the provision of ancillary supplies or home medical supplies, we offer the following information for your reference.
Ancillary supplies
Subsection 259(1) defines an “ancillary supply” to mean
“a) an exempt supply of a service of organizing or coordinating the making of facility supplies or home medical supplies in respect of which supply an amount, other than a nominal amount, is paid or payable to the supplier as medical funding, or
(b) the portion of an exempt supply (other than a facility supply, a home medical supply or a prescribed supply) of property or a service (other than a financial service) that represents the extent to which the property or service is, or is reasonably expected to be, consumed or used for making a facility supply and in respect of which portion an amount, other than a nominal amount, is paid or payable to the supplier as medical funding.”
Home medical supply
Subsection 259(1) defines a “home medical supply” to mean
“an exempt supply (other than a facility supply or a prescribed supply) of property or a service
(a) that is made
(i) as part of a medically necessary process of health care for an individual for the purpose of maintaining health, preventing disease, diagnosing or treating an injury, illness or disability or providing palliative health care, and
(ii) after a physician acting in the course of the practise of medicine, or a prescribed person acting in prescribed circumstances, has identified or confirmed that it is appropriate for the process to take place at the individual’s place of residence or lodging (other than a public hospital or a qualifying facility),
(b) in respect of which the property is made available, or the service is rendered, to the individual at the individual’s place of residence or lodging (other than a public hospital or a qualifying facility), on the authorization of a person who is responsible for coordinating the process and under circumstances in which it is reasonable to expect that the person will carry out that responsibility in consultation with, or with ongoing reference to instructions for the process given by, a physician acting in the course of the practise of medicine, or a prescribed person acting in prescribed circumstances,
(c) all or substantially all of which is of property or a service other than meals, accommodation, domestic services of an ordinary household nature, assistance with the activities of daily living and social, recreational and other related services to meet the psycho-social needs of the individual, and
(d) in respect of which an amount, other than a nominal amount, is paid or payable as medical funding to the supplier.”
Subsection 259(1) defines “medical funding” of a supplier in respect of a supply to be
“an amount of money (including a forgivable loan but not including any other loan or a refund, remission or rebate of, or credit in respect of, taxes, duties or fees imposed under any statute) that is paid or payable to the supplier in respect of health care services for the purpose of financially assisting the supplier in making the supply or as consideration for the supply by
(a) a government, or
(b) a person that is a charity, a public institution or a qualifying non-profit organization
(i) one of the purposes of which is organizing or coordinating the delivery of health care services to the public, and
(ii) in respect of which it is reasonable to expect that a government will be the primary source of funding for the activities of the person that are in respect of the delivery of health care services to the public during the fiscal year of the person in which the supply is made.”
Calculation of the PSB rebate
The rules in section 259 of the ETA provide that the PSB rebate is calculated and claimed on a claim period by claim period basis. The claim periods of a GST/HST registrant are the same as the reporting periods for its GST/HST returns (i.e., annually, quarterly or monthly). A PSB that is not a GST/HST registrant has two claim periods per fiscal year – the first six months and the last six months of its fiscal year.
A PSB claims its rebate on a property-by-property or service-by-service basis. It is the intended consumption, use or supply of a particular property or service at the relevant time that determines the PSB rebate entitlement for the non-creditable GST or HST paid on that property or service, not the overall activities of the PSB. Generally, the relevant time will be the time the supply was made to, or the property was imported or brought into Ontario by, the Corporation.
The Corporation’s entitlement to an 83% (and 87%) PSB rebate may be limited and require apportionment where the tax paid or payable is for activities that do not qualify for the rebate, unless subsection 259(14) applies.
Subsection 259(14) provides that:
“For the purposes of this section, if a person incurs all or substantially all of the tax that is included in determining the amount of the non-creditable tax charged in respect of property or a service for a claim period of the person acting in the person's capacity as a hospital authority, a facility operator or an external supplier, the person is deemed to have incurred all of the tax that is included in determining that amount in the course of fulfilling the person's responsibilities as a hospital authority, a facility operator or an external supplier, as the case may be.”
The CRA defines “all or substantially all” to mean 90% or more. Generally, subsection 259(14) means that where the Corporation incurs 90% or more of the GST/HST for a property or a service acquired in its capacity as a facility operator (e.g., for use in making facility supplies), all of that GST/HST is deemed to have been incurred in that capacity. As such, the Corporation could claim a PSB rebate for that property or service at the rate of 83% for the GST and the federal part of the HST and, as a resident only in Ontario, at 87% for the provincial part of the HST. For example, if the Corporation incurs GST/HST on its utilities, and the Corporation determines it incurs 93% of the GST/HST in its activities as a facility operator for making facility supplies, the Corporation may claim 100% of the GST/HST it pays on the utilities using the 83% (and 87%) PSB rebate rates.
Please note that the wording of subsection 259(14) requires an allocation to be performed for each property or service identified in the claim period.
Rebate for purchases that do not qualify for 83% rebate
As a charity for purposes of the GST/HST, the Corporation is eligible to claim a 50% PSB rebate of the GST and the federal part of the HST paid or payable on eligible purchases and expenses intended for consumption, use or supply in activities engaged in by the Corporation otherwise than in the course of operating [X] for use in making facility supplies, or in the course of making facility supplies.
As the Corporation is only resident in Ontario, it is also eligible for an 82% PSB rebate of the provincial part of the HST paid or payable on eligible purchases and expenses intended for consumption, use or supply in activities engaged in by the Corporation otherwise than in the course of operating [X] for use in making facility supplies, or in the course of making facility supplies.
For more information on the calculation of the rebate, please refer to the GST/HST guide, RC4034, GST/HST Public Service Bodies' Rebate. This guide is available on our website.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-670-7935. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.
Yours truly,
John Ware
Health Care Sectors Unit
Public Service Bodies and Governments Division
Excise and GST/HST Rulings Directorate
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