Fact sheet

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Goods and services tax/harmonized sales tax (GST/HST) credit

Who is eligible for the GST/HST credit?

Individuals are eligible if they are residents of Canada and they are 19 years of age or older. Individuals who are under 19 years of age are only eligible if they have a spouse or common-law partner, or if they are a parent and live with their child.

Individuals confined to a prison or similar institution for a period of 90 days or more are not eligible for the credit. Officers or servants of another country, such as diplomats, and family members or employees of diplomats, are also not eligible for the credit since they do not have to pay tax in Canada. Also, individuals cannot claim a credit for a spouse or common-law partner or a child who meets either of these two conditions.

Individuals who turn 19 years of age before April 1, 2003 can apply

Individuals who will turn 19 before April 1, 2003, can receive a GST/HST credit starting with the first payment after their 19^th birthday. All they have to do is file a 2001 tax return and apply for the credit.

How to apply for the GST/HST credit

To apply for or to continue receiving the GST/HST credit, individuals have to file their income tax return each year and check the "Yes" box in the area called "Goods and services tax/harmonized sales tax (GST/HST) credit application" on page 1 of the return. In addition, they have to indicate their marital status in the identification area of the return. If they are married or living common-law, they also have to provide their spouse or common-law partner's social insurance number and net income (even if it is zero) in the identification area, since the credit is based on family net income.

If an individual has a spouse or common-law partner, only one of them can apply for the credit. No matter who applies, the credit will be the same.

In previous years, individuals also had to enter the number of qualified children for whom they were claiming the credit. However, beginning with the July 2002 payment, the CCRA will base their GST/HST credit on their Canada Child Tax Benefit (CCTB) information. Individuals whose children are not registered for the CCTB should call 1-800-387-1193 (English) or 1-800-387-1194 (French) for more information. Individuals who choose not to receive the CCTB, or who do not yet qualify, may still be able to receive the GST/HST credit for their children. For details, call 1-800-959-1953 (English) or 1-800-959-1954 (French).

The CCRA needs this information each year to determine eligibility and to calculate the GST/HST credit correctly. The CCRA does not include the GST/HST credit with income tax refunds. Instead, in July, once the previous year's return is assessed, the CCRA sends a notice of determination to let people know the amount to which they are entitled and how this amount was calculated. The notice includes the first GST/HST credit payment if a person is entitled to receive it. If the person has requested direct deposit, the notice confirms the amount deposited.

How do individuals find out if they are eligible?

The CCRA's automated Tax Information Phone Service, called T.I.P.S., gives information on eligibility for the GST/HST credit and the dates people can expect to receive their payments. The CCRA issues GST/HST credit payments four times a year, on or about the fifth day of each quarter. (The last two payments in 2002 will be issued on July 5, 2002, and October 4, 2002). The T.I.P.S. telephone number is 1-800-267-6999. This information service is also available on the Internet through T.I.P.S. Online at www.cra.gc.ca/tips .

To get GST/HST credit information using T.I.P.S. or T.I.P.S. Online, individuals have to provide their social insurance number, month and year of birth, and the total income they reported on line 150 of their tax return. People who call before May 1 have to provide the amount they reported on line 150 of the tax return they filed the previous year. If they call after April 30, they have to provide the amount from line 150 of their current-year tax return.

What happens if an individual's situation changes?

Beginning in July 2002, the GST/HST credit will become more responsive to changes in family circumstances. Individuals should inform the CCRA if:

• their marital status changes;
• they have a child;
• a child for whom they were receiving the credit is no longer in their care, stops living with them, becomes a spouse or common-law partner or a parent, or dies; or
• they or their spouse or common-law partner is no longer a resident of Canada.

After individuals inform the CCRA of any of the above changes, any resulting adjustment will be made to their GST/HST credit in the next quarter.

In addition, individuals who become residents of Canada during 2002 or the first three months of 2003 may be eligible for the credit. They should use Form RC151, GST/HST Credit Application, to apply for the credit.

Child and Family Benefits Online Calculator

The CCRA continues to support the Government of Canada's commitment to provide access to government services on the Internet. A new service this year is the Child and Family Benefits Online Calculator, available on the CCRA Web site at www.cra.gc.ca/benefits-calculator . The calculator helps people estimate how much their GST/HST credit (and any related provincial credit and benefit) payments will be. To use the calculator, they simply enter their marital status, family net income, province or territory of residence, and the number of their children who are under 19 years of age.

What if a person doesn't get a GST/HST credit payment?

Individuals may not have received a GST/HST credit payment they were expecting because:

• they moved and did not give the CCRA a new address (this also applies to direct deposit);
• they did not file an income tax return;
• they ticked "No" by mistake on the GST/HST credit application on page 1 of their tax return; or
• they are not eligible because of age, residency, or other factors.

The CCRA's new Address Changes Online service makes it easier for individuals to inform the CCRA when they move. This service is available at www.cra.gc.ca/newaddress.

The CCRA sends a notice of determination explaining why they did not receive a payment if one of the following situations occurs:

• Their income is too high;
• They owed money to one or more government institutions and their GST/HST credit was used to offset these debts;
• Both spouses or common-law partners made a claim (only one spouse or common-law partner can receive the credit for the whole family); or
• Their payment was withheld under the Family Orders and Agreements Enforcement Assistance Act.

Related provincial programs

The CCRA administers the Newfoundland Harmonized Sales Tax Credit, the Newfoundland and Labrador Seniors' Benefit, and the Saskatchewan Sales Tax Credit on behalf of the provinces. There is no need to apply separately for these programs. Individuals (or the spouse or common-law partner) should apply for the GST/HST credit on their tax return. The CCRA will automatically determine eligibility under the provincial programs and will calculate the entitlement. Payments for the Newfoundland Harmonized Sales Tax Credit and the Newfoundland and Labrador Seniors' Benefit are combined with the October payment of the federal GST/HST credit. Payments for the Saskatchewan Sales Tax Credit are combined with the GST/HST credit and are issued quarterly.

For more information

More information is available from any tax services office. Addresses and telephone numbers are listed in the government section of most telephone books. Information on the GST/HST credit can also be found on the "Child and family benefits" page of the CCRA's Web site at www.cra.gc.ca/cctb-gstc .

GST/HST Credit
Guideline table effective July 2002 - June 2003

• Not married
• Married

Not married

Married

Notes

1. The amounts listed above represent a client's yearly entitlement for the GST/HST credit based on his or her marital status, family size, and family net income.
2. The yearly entitlement is normally paid in four quarterly issuances: for example, in July 2002, October 2002, January 2003, and April 2003. The issuance date is on or about the fifth day of the month.
3. These amounts are guidelines only.
4. All clients must inform the Canada Customs and Revenue Agency of any changes to their current address, family size, and marital situation.

This document is also available for download in PDF format.

Date modified:

2002-07-05