CRA rules that the Ontario electricity rebate does not reduce the consideration for the supply

There currently is an 8% rebate under the Ontario Rebate for Electricity Consumers Act, 2016 equal to the provincial portion of HST on the electricity bills of residential, farm, small business and other eligible customers. CRA has ruled that the rebate is financial assistance and does not reduce the consideration for the supply of the electricity nor the HST itself – so that input tax credits or public service body rebate claims of the recipient are not reduced by the rebate amount.

Neal Armstrong. Summary of 2 August 2017 Ruling 182285 under s. 169(1) and summary of 10 August 2017 Ruling 182286 under s. 259(1) – non-creditable tax charged.