Municipality – 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. Examples of other incorporated municipal bodies include incorporated communities in Newfoundland and Labrador, incorporated northern hamlets, and incorporated northern settlements in Saskatchewan.

Determined municipality – If a local authority is determined to be a municipality, it has the benefit of municipal status for all GST/HST purposes. For example, a paramunicipal organization can apply to be determined to be a municipality.

Designated municipality – If a person is designated by the Minister of National Revenue to be a municipality for particular exempt municipal services that it supplies, the person is considered to be a municipality only for the purpose of the PSB rebate and only for those particular exempt municipal services. The designation does not apply to the organization as a whole.

The designation allows the person to apply for a rebate of the GST/HST using the municipality rebate factor, but only for the tax paid or payable on eligible purchases and expenses used in the course of supplying the exempt municipal services for which the organization was designated.

For example, an organization that is not a municipality may be designated by the Minister of National Revenue to be a municipality if it operates a water distribution, sewerage, or drainage system and it provides services of installing, repairing, maintaining, or interrupting that system. Once designated, the organization's supplies of those services are exempt from the GST/HST. It can also claim a PSB rebate using the municipality rebate factor for the GST/HST paid or payable on eligible purchases and expenses used to provide those services.

Municipalities resident in a participating province – may also qualify for a rebate of the provincial part of the HST paid or payable (see table above).

University – A university means a recognized degree-granting institution or an organization that operates a college affiliated with, or a research body of, such an institution. To qualify for the PSB rebate, the university must be established and operated on a non-profit basis.

Universities (or affiliated colleges or research bodies) established and operated on a non-profit basis resident in a participating province – They may also qualify for a rebate of the provincial part of the HST paid or payable (see table above).

School authority – 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 in which the school is operated. To qualify for the PSB rebate, the school authority must be established and operated on a non-profit basis.

School authorities established and operated on a non-profit basis resident in a participating province – They may also qualify for a rebate of the provincial part of the HST paid or payable (see table above).

Public college – 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 assist in the ongoing provision of educational services to the general public
• whose primary purpose is to provide programs of instruction in one or more fields of vocational, technical, or general education

To qualify for the PSB rebate, the public college must be established and operated on a non-profit basis.

Public colleges established and operated on a non-profit basis resident in a participating province – They may also qualify for a rebate of the provincial part of the HST paid or payable (see table above).

Hospital authority – means an organization that operates a public hospital and that has been designated as a hospital authority for GST/HST purposes by the Minister of National Revenue. The PSB rebate applies to property or services consumed, used, or supplied in activities engaged in by the person in the course of operating a public hospital. For more information, see GST/HST Memorandum 25-2, Designation of Hospital Authorities and GST/HST Policy Statement P-245, Determination of activities engaged in by the person in the course of operating a public hospital" for purposes of the 83% public service body rebate for hospital authorities.

If you are a hospital authority, you can claim the federal rebate percentage for the GST or the federal part of the HST paid or payable on your purchases related to these activities and supplies based on the following rule:

• If you intend to use, consume, or supply your purchase of property or a service 90% or more in the course of operating a public hospital, of operating a qualifying facility for use in making facility supplies, or the making of facility supplies, ancillary supplies, or home medical supplies, you can claim the federal rebate percentage of the GST and the federal part of the HST that you pay or owe on the entire amount of the purchase.
• If you intend to use, consume, or supply your purchase less than 90% for these purposes, you can claim the federal rebate in the claim period based on the percentage you use, consume, or supply the property or service in these activities or to provide those supplies.

Only calculate the PSB rebate on the amount of tax as indicated above that you cannot recover as an input tax credit.

Hospital authorities resident in a participating province – may also qualify for a PSB rebate of some of the provincial part of the HST paid or payable in respect of activities related to the operation of a public hospital (see table above).

If you are a hospital authority resident in a participating province, you can claim the provincial rebate percentage for the provincial part of the HST paid or payable on your purchases related to these activities and supplies in the participating province based on the following rule:

• If you intend to use, consume, or supply your purchase of property or a service 90% or more in the course of operating a public hospital, of operating a qualifying facility for use in making facility supplies, or the making of facility supplies, ancillary supplies, or home medical supplies, you can claim the provincial rebate percentage of the provincial part of the HST that you pay or owe on the entire amount of the purchase.
• If you intend to use, consume, or supply your purchase less than 90% for these purposes, you can claim the provincial rebate in the claim period based on the percentage you use, consume, or supply the property or service in these activities or to provide those supplies.

Only calculate the PSB rebate on the amount of tax as indicated above that you cannot recover as an input tax credit.

Hospital authorities resident in a participating province with activities not related to the operation of a public hospital may also qualify for other provincial rebates:

• Hospital authorities in Ontario may qualify for a PSB rebate of some of the provincial part of the HST paid or payable on line 310-ON of Form RC7066-SCH.
• Hospital authorities in British Columbia may qualify for a PSB rebate of some of the provincial part of the HST paid or payable on line 310-BC of Form RC7066-SCH.
• Hospital authorities in Nova Scotia may qualify for a PSB rebate of some of the provincial part of the HST paid or payable on line 305-NS or 306-NS of Form RC7066-SCH, whichever applies.

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 PSB rebate, a charity also includes a non-profit organization that operates, other than for profit, a health-care facility for the purpose of providing residents of the facility with 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. This is restricted to facilities where residents have limited physical or mental capacity for self-supervision and self-care.

Charities and public institutions resident in a participating province – may also qualify for a PSB rebate of some of the provincial part of the HST paid or payable on non-selected public service body activities (see table above).

Charities and public institutions resident two or more provinces, at least one of which is a participating province, must calculate their PSB rebate of the provincial part of the HST based on the extent they intended to consume, use, or supply property or services in the course of their activities in each participating province in which they are resident.

A charity that is a GST/HST registrant

As a charity that is a GST/HST registrant, you have to use the net tax calculation for charities when you file your GST/HST return, unless you are eligible to elect not to use it and you file the appropriate application with us.

Using the net tax calculation method for charities does not affect your PSB rebate entitlements and you still claim your PSB rebate in the usual way.

A non-profit organization (NPO) or prescribed government organization will be eligible for a PSB rebate if it is a qualifying NPO. An NPO cannot be an individual, estate, trust, charity, municipality, public institution, or government (however, for purposes of entitlement to a PSB rebate only, an NPO can include a prescribed government organization). An NPO must be organized and operated solely for non-profit purposes and a proprietor, member, or shareholder of the organization cannot receive or benefit from any of the income unless they are a club, society, or association that promotes amateur athletics in Canada.

An NPO will be eligible for a PSB rebate if it is a qualifying NPO. To be considered a qualifying NPO, at any time in a fiscal year, the NPO's or prescribed government organization's percentage of government funding for the fiscal year must be at least 40% of its total revenue. See Guide RC4034, to find out how to calculate the percentage of government funding to support your eligibility. An NPO has to file Form GST523, Non-profit Organizations – Government Funding for each fiscal year.

Qualifying NPOs resident in a participating province – may also qualify for a PSB rebate of some of the provincial part of the HST paid or payable on non-selected public service body activities (see table above).

Qualifying NPOs resident in two or more provinces, at least one of which is a participating province, must calculate their PSB rebate of the provincial part of the HST based on the extent they intended to consume, use, or supply property or services in the course of their activities in each participating province in which they are resident.

Specified persons, excluding prescribed charities and prescribed non-profit organizations, can claim a rebate of the GST or the federal part of the HST paid or payable on printed books, audio recordings of printed books, and printed versions of religious scriptures purchased other than for resale. This means that the rebate is not available if the books were acquired to be sold or given away.

Specified persons that are prescribed charities and prescribed non-profit organizations whose primary purpose is the promotion of literacy can claim a rebate of the GST/HST payable on printed books, audio recordings of printed books, and printed versions of religious scriptures that are acquired other than for the purpose of sale for consideration. This broadens the rebate available to such organizations to include property that is given away at no cost.

For this rebate, printed books do not include certain items such as the following:

• newspapers
• magazines and periodicals that are not purchased by subscription or that have more than 5% of their printed space devoted to advertising
• books designed primarily for writing or drawing on
• brochures or pamphlets
• agendas and calendars
• directories
• rate books (for example, insurance rate books)

A 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
• a prescribed charity or a prescribed qualifying NPO whose primary purpose is the promotion of literacy

To become prescribed, send your request, including the name of the organization, its governing documents, and a statement of its purposes and activities, to the following address:

 Director  Public Service Bodies and Governments Division Excise and GST/HST Rulings Directorate  320 Queen Street, Tower A, 11th floor  Ottawa ON K1A 0L5  Canada 

We will pass our recommendation on to the Department of Finance Canada, which will make the final determination. For more information, see GST/HST Memorandum 13-4, Rebates for Printed Books, Audio Recordings of Printed Books, and Printed Versions of Religious Scriptures.

Rebate for printed books in Newfoundland and Labrador

The point-of-sale rebate on books was not available in Newfoundland and Labrador from January 1, 2017, to December 31, 2017.

However, if you are eligible to claim a rebate of the federal part of the HST on line 307, you are also eligible to claim a rebate of the provincial part of the HST payable in 2017, for printed books, audio recordings of printed books, and printed versions of religious scripture that you purchased, imported, or brought into Newfoundland and Labrador. Claim the amount on line 307-NL of the provincial schedule. You do not need to be resident in Newfoundland and Labrador to claim this rebate.

If you are a charity or a public institution , you can claim a rebate of the GST/HST that you paid on goods or services that you exported outside Canada. To be eligible for the rebate, you must have paid the GST/HST and have exported the goods or services.

If you export goods or services for which you previously claimed a PSB rebate on another line, you may still be eligible for a rebate on the amount that did not qualify. After the goods or services have been exported, the difference between the total GST/HST paid and the amount previously claimed as a PSB rebate may be claimed.

Claim the difference between the GST or the federal part of the HST and the amount previously claimed on line 308 of the rebate application. Claim the difference between the provincial part of the HST and the amount previously claimed on the appropriate line(s) of the provincial schedule. You have up to four years from the last day of the fiscal year in which tax in respect of the supply became payable to file a rebate application for this rebate.

Self-government refund refers to a refund available to a First Nation or Inuit government that has entered into an agreement with the Government of Canada that provides for a refund of the GST or the federal part of the HST for property and services that are acquired for self-government activities.

First Nations and Inuit governments that have entered into such agreements include those Yukon First Nations with final agreements, the Nisga'a Nation, the Tlicho First Nation, Tsawwassen First Nation and the Labrador Inuit (Nunatsiavut Government).

If you are a First Nation that has such an agreement, you may be eligible to claim a refund of the GST or the federal part of the HST paid or payable on property and services. The terms and conditions that apply to the refund of the GST or the federal part of the HST are included in each agreement.

The time limit for claiming the self-government refund is stated in your agreement.

An organization that has been designated as a hospital authority for GST/HST purposes by the Minister of National Revenue can claim a rebate of 83% of the GST and the federal part of the HST paid or payable on its eligible purchases and expenses related to operating a qualifying facility for use in making facility supplies, or the making of facility supplies, ancillary supplies, or home medical supplies.

For more information on designation as a hospital authority, see GST/HST Memorandum 25-2, Designation of Hospital Authorities.

If you are a hospital authority, you can claim the federal rebate percentage for the GST or the federal part of the HST paid or payable on your purchases related to these activities and supplies based on the following rule:

• If you intend to use, consume, or supply your purchase of property or a service 90% or more in the course of operating a public hospital, of operating a qualifying facility for use in making facility supplies, or the making of facility supplies, ancillary supplies, or home medical supplies, you can claim the federal rebate percentage of the GST and the federal part of the HST that you pay or owe on the entire amount of the purchase.
• If you intend to use, consume, or supply your purchase less than 90% for these purposes, you can claim the federal rebate in the claim period based on the percentage you use, consume, or supply the property or service in these activities or to provide those supplies.

Only calculate the rebate on the amount of tax as indicated above that you cannot recover as an input tax credit.

Hospital authorities resident in a participating province – may also qualify for a PSB rebate of some of the provincial part of the HST paid or payable in respect of eligible activities other than the operation of a public hospital (see table above).

If you are a hospital authority resident in a participating province, you can claim the provincial rebate percentage for the provincial part of the HST paid or payable on your purchases related to these activities and supplies in the participating province based on the following rule:

• If you intend to use, consume, or supply your purchase of property or a service 90% or more in the course of operating a public hospital, of operating a qualifying facility for use in making facility supplies, or the making of facility supplies, ancillary supplies, or home medical supplies, you can claim the provincial rebate percentage of the provincial part of the HST that you pay or owe on the entire amount of the purchase.
• If you intend to use, consume, or supply your purchase less than 90% for these purposes, you can claim the provincial rebate in the claim period based on the percentage you use, consume, or supply the property or service in these activities or to provide those supplies.

Only calculate the PSB rebate on the amount of tax as indicated above that you cannot recover as an input tax credit.

You may be eligible to claim a PSB rebate if you are a facility operator. A facility operator is a charity, a public institution, or a qualifying non-profit organization (other than a hospital authority) that operates a qualifying facility. The PSB rebate applies to property or services consumed, used, or supplied in activities engaged in by the person in the course of operating a qualifying facility for use in making facility supplies, or of making facility supplies, ancillary supplies, or home medical supplies.

If you are a facility operator, you can claim the federal rebate percentage for the GST or the federal part of the HST paid or payable on your purchases related to these eligible activities based on the following rule:

• If you intend to use, consume, or supply your purchase of property or a service 90% or more in the course of operating a qualifying facility for use in making facility supplies, or the making of facility supplies, ancillary supplies, or home medical supplies, you can claim the federal rebate percentage of the GST and the federal part of the HST that you pay or owe on the entire amount of the purchase.
• If you intend to use, consume, or supply your purchase less than 90% for these eligible activities, you can claim the federal rebate in the claim period based on the percentage you use, consume, or supply the property or service in these activities or to provide those supplies.

Only calculate the PSB rebate on the amount of tax as indicated above that you cannot recover as an input tax credit.

Facility operators resident in a participating province – may also qualify for a PSB rebate of some of the provincial part of the HST paid or payable (see table above).

If you are a facility operator, you can claim the provincial rebate percentage for the provincial part of the HST paid or payable on your purchases related to these eligible activities in the participating province based on the following rule:

• If you intend to use, consume, or supply your purchase of property or a service 90% or more in the course of operating a qualifying facility for use in making facility supplies, or the making of facility supplies, ancillary supplies, or home medical supplies, you can claim the provincial rebate percentage of the provincial part of the HST that you pay or owe on the entire amount of the purchase.
• If you intend to use, consume, or supply your purchase less than 90% for these eligible activities, you can claim the provincial rebate in the claim period based on the percentage you use, consume, or supply the property or service in these activities or to provide those supplies.

Only calculate the PSB rebate on the amount of tax as indicated above that you cannot recover as an input tax credit.

For more information on eligible activities of a facility operator, call 1-800-959-8287.

You may be eligible to claim a PSB rebate if you are an external supplier. An external supplier is a charity, public institution, or a qualifying NPO (other than a hospital authority or a facility operator) that makes:

• ancillary supplies
• facility supplies
• home medical supplies

The PSB rebate applies to property or services consumed, used, or supplied in the course of making facility supplies, ancillary supplies, or home medical supplies.

If you are an external supplier, you can claim the federal rebate percentage for the GST or the federal part of the HST paid or payable on your purchases related to these supplies based on the following rule:

• If you intend to use, consume, or supply your purchase of property or a service 90% or more in the course of making facility supplies, ancillary supplies, or home medical supplies, you can claim the federal rebate percentage of the GST and the federal part of the HST that you pay or owe on the entire amount of the purchase.
• If you intend to use, consume, or supply your purchase less than 90% for these eligible activities, you can claim the federal rebate in the claim period based on the percentage you use, consume, or supply the property or service in these activities or to provide those supplies.

Only calculate the PSB rebate on the amount of tax as indicated above that you cannot recover as an input tax credit.

External suppliers resident in a participating province – may also qualify for a PSB rebate of some of the provincial part of the HST paid or payable (see table above).

If you are an external supplier, you can claim the provincial rebate percentage for the provincial part of the HST paid or payable on your purchases related to these supplies in the participating province based on the following rule:

• If you intend to use, consume, or supply your purchase of property or a service 90% or more in the course, of making facility supplies, ancillary supplies, or home medical supplies, you can claim the provincial rebate percentage of the provincial part of the HST that you pay or owe on the entire amount of the purchase.
• If you intend to use, consume, or supply your purchase less than 90% for these eligible activities, you can claim the provincial rebate in the claim period based on the percentage you use, consume, or supply the property or service in these activities or to provide those supplies.

Only calculate the PSB rebate on the amount of tax as indicated above that you cannot recover as an input tax credit.

For more information on eligible activities of an external supplier, call 1-800-959-8287.

You are a school authority resident in Nova Scotia. You paid HST on an expense on October 15, 2017 (during the claim period October 1, 2017 to December 31, 2017), and were eligible to claim a PSB rebate for the amount. You notice in July 2019 that you did not claim that PSB rebate on any rebate application. You want to claim that PSB rebate on your rebate application for the claim period April 1, 2019 to June 30, 2019.

You have been a school authority throughout the period from October 1, 2017 to June 30, 2019, and you have not been any other type of PSB rebate claimant during the period. Your rebate factor has been 68% for both the federal part of the HST and the provincial part of the HST throughout the period.

You are eligible to claim the PSB rebate of the HST paid on October 15, 2017, in your PSB rebate application for the claim period April 1, 2019 to June 30, 2019, provided you file the rebate application within two years of the due date for your GST/HST return for the period October 1, 2017, to December 31, 2017.