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 GST/HST purposes.

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 to be a municipality for particular exempt municipal services that it supplies, the person is considered to be a municipality only for the purposes 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 (referred to as designated activities).

For example, an organization that is not a municipality may be designated by the Minister of National Revenue to be a municipality for its supplies of long-term accommodation on a rent-geared-to-income (RGI) basis. Once designated, it can claim a PSB rebate using the municipality rebate factor for the GST/HST paid or payable on purchases and expenses used to provide RGI accommodation.

Another example is an organization that is not a municipality and that is designated by the Minister of National Revenue to be a municipality because 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 means a recognized degree-granting institution or an organization that operates a college affiliated with, or a research body of, such an institution.

For more information, see GST/HST Memorandum 20-3, Universities.

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 may also qualify for a rebate of the provincial part of the HST paid or payable (see table above).

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.

For more information, see GST/HST Memorandum 20-1, School Authorities – Elementary and Secondary Schools.

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 may also qualify for a rebate of the provincial part of the HST paid or payable (see table above).

Public college means an organization that operates a post-secondary college or post-secondary technical institute that meets both of the following conditions:

• The organization receives funds from a government or a municipality that are paid for the purpose of assisting the organization in the ongoing provision of educational services to the general public
• The organization’s 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 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 is designated by the Minister of National Revenue as a hospital authority for GST/HST purposes.

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 rules:

• 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 to make 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 to make 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 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 purposes of the PSB rebate, a charity also includes a non-profit organization that operates, otherwise than for profit, a health-care facility.

Health care facility, for the purposes of the definition of charity, means a facility, or a part thereof, operated for the purpose of providing 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 (other than domestic services of an ordinary household nature) according to the individual requirements of the residents
• assistance with the activities of daily living
• assistance with social, recreational, and other related services to meet the psycho-social needs of the residents
• meals and accommodation

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 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.

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 form with the CRA.

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 means a person (other than an individual, estate, trust, charity, public institution, municipality, or government) that meets both of 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, society, or an association that has, as its primary purpose and function, the promotion of amateur athletics in Canada

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, GST/HST Public Service Bodies' Rebate, to find out how to calculate the percentage of government funding to support your eligibility. An NPO has to file Form GST523-1, 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 payable on printed books and their updates, audio recordings of printed books, and printed versions of religious scriptures purchased other than for resale.

The rebate is not available if:

• the specified person has acquired or imported the books to be sold or given away
• for GST/HST that becomes payable after July 27, 2018, without having been paid on or before that day, the specified person has acquired or imported the books for the purpose of transferring ownership of the books as part of a single supply of another property or service

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 and their updates, audio recordings of printed books, and printed versions of religious scriptures that are acquired other than for the purposes 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:

• 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, or affixing thereto, or inserting therein, items such as clippings, pictures, coins, stamps, or stickers
• brochures or pamphlets
• agendas and calendars
• directories
• rate books (for example, insurance rate books)

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
GST/HST Rulings Directorate
320 Queen Street, Tower A, 5th floor
Ottawa ON K1A 0L5

The CRA will pass their recommendation on to the Department of Finance Canada. For more information, see GST/HST Memorandum 13-4, Rebates for Printed Books, Audio Recordings of Printed Books, and Printed Versions of Religious Scriptures.

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

If you export property 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. Once you have exported the property or services, you may be able to claim the difference between the total GST/HST paid and the amount previously claimed as a PSB rebate. 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 lines 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 an Indigenous government that has entered into an agreement with the Government of Canada that provides for a refund of the GST and the federal part of the HST for property and services that are acquired for self-government activities. Indigenous governments that have entered into such agreements include those Yukon First Nations with self-agreements, the Nisga'a Nation, the Tlicho First Nation, the Tsawwassen First Nation, the Maa-nulth First Nations, the Tla'amin First Nation, the Déline First Nation, and the Labrador Inuit.

If you are an Indigenous government that has such an agreement, you may be eligible to claim a refund of 100% of the GST and 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 and the federal part of the HST are included in each agreement.

Enter the refund on line 309 of the rebate application. 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 to make 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 rules:

• 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 to make 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 rules:

• 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 to make 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 means 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 to make 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 rules:

• 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 to make 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 rules:

• 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 to make 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 means a charity, a public institution, or a qualifying NPO (other than a hospital authority or a facility operator) that makes ancillary supplies, facility supplies, or home medical supplies.

The PSB rebate applies to property or services consumed, used, or supplied in eligible activities.

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

• 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 rules:

• 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, 2019 (during the claim period October 1, 2019 to December 31, 2019), and were eligible to claim a PSB rebate for the amount. You notice in July 2021 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, 2021 to June 30, 2021.

You have been a school authority throughout the period from October 1, 2019 to June 30, 2021, 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, 2019, in your PSB rebate application for the claim period April 1, 2021 to June 30, 2021, provided you file the rebate application within two years of the due date for your GST/HST return for the period October 1, 2019 to December 31, 2019.