The public service bodies (PSB) rebate is available to charities, qualifying non-profit organizations or selected public services bodies as a mechanism to claim the federal component of HST incurred on eligible expenses. Canada Revenue Agency (CRA) requires PSB rebates to be filed based on the organization’s applicable claim period.
For non-registrants that are filing the GST 66 form to claim the PSB rebate, the claim period for the application is the first 6 months of the entity’s fiscal year. There is then another claim period and application required for the last 6 months of the entity’s fiscal year. Where the PSB making the claim is a GST/HST registrant, the claim period is the organization’s GST/HST reporting period (i.e. monthly, quarterly or annual).
Following up our blog post from last year, http://djb.com/2015/09/timing-of-public-service-body-gsthst-rebates/, although previously the CRA has accepted the rebate application where the rebate was filed for the full fiscal year (for non-registrants) which would include both claim periods on a single PSB rebate application, this treatment is not consistent with the administrative claim period requirement. Recently we have been seeing that the CRA has been assessing the rebates filed for 2 claim periods reported on the same application as nil due to incorrect reporting periods indicated on the PSB rebate form.
If you have any questions on the public service bodies rebate or the related claim period, you can contact DJB’s GST/HST team for further information.
Article written by: Arber L. Dick (Mrs.), CPA, CA