Public Service Body Rebate (GST/HST) Regulations (SOR/91-37)

Prescribed Method of Calculating Rebate

• 6 (1) For the purpose of section 7, the threshold amount for a fiscal year of a person is equal to the total of

  • (a) the amount determined by the formula

    A × 365/B

    where

    A

    is the total of all consideration (other than consideration referred to in section 167.1 of the Act that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services and supplies by way of sale of real property that is capital property of the person) made by the person that became due, or was paid without having become due, to the person in the immediately preceding fiscal year (in this subsection referred to as the “base year”) of the person, and

    B

    is the number of days in the base year, and

  • (b) the total of all amounts each of which is an amount in respect of another person (in this paragraph referred to as the “associate”) who was associated with the person at the end of the particular fiscal year of the associate that is the last fiscal year of the associate ending in the base year and is determined by the formula

    C × 365/D

    where

    C

    is the total of all consideration (other than consideration referred to in section 167.1 of the Act that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services and supplies by way of sale of real property that is capital property of the associate) made by the associate that became due, or was paid without having become due, to the associate in the particular fiscal year, and

    D

    is the number of days in the particular fiscal year.

• (2) For the purpose of section 7, the threshold amount for a particular fiscal quarter in a particular fiscal year of a person is equal to the total of

  • (a) all consideration (other than consideration referred to in section 167.1 of the Act that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services and supplies by way of sale of real property that is capital property of the person) made by the person that became due, or was paid without having become due, to the person in the preceding fiscal quarters in the particular fiscal year, and

  • (b) all amounts each of which is an amount in respect of another person (in this paragraph referred to as the “associate”) who was associated with the person at the beginning of the particular fiscal quarter and is equal to the total of all consideration (other than consideration referred to in section 167.1 of the Act that is attributable to goodwill of a business) for taxable supplies (other than supplies of financial services and supplies by way of sale of real property that is capital property of the associate) made by the associate that became due, or was paid without having become due, to the associate in the fiscal quarters of the associate that end in the particular fiscal year before the beginning of the particular fiscal quarter.

• (3) For the purposes of subsections (1) and (2), if consideration, or a part of it, for a taxable supply (other than a supply by way of sale of real property) made by a person in the course of activities engaged in by the person in a branch or division of the person becomes due, or is paid without having become due, to the person at a time when the branch or division is a small supplier division (within the meaning of subsection 129(1) of the Act), that consideration or part of it, as the case may be, is deemed not to be consideration for a taxable supply.

• (4) For the purpose of section 7, the purchase threshold for a fiscal year of a person is equal to the total of all amounts each of which

  • (a) is an amount that became due, or was paid without having become due, by the person in the immediately preceding fiscal year of the person for a taxable supply, other than a zero-rated supply, of property or a service that was acquired in Canada by the person or was acquired outside Canada by the person and imported by the person; and

  • (b) is either

    • (i) included in determining the cost to the person of the property or service for the purposes of the Income Tax Act, or

    • (ii) tax payable by the person in respect of the acquisition or importation of the property or service.

• (5) If property or a service is acquired by a person for consumption, use or supply in the course of activities engaged in by the person in a branch or division of the person and, at a time when the branch or division is a small supplier division (within the meaning of subsection 129(1) of the Act), an amount becomes due, or is paid without having become due, by the person for the supply of the property or service to the person, the amount shall not be included in determining the purchase threshold under subsection (4) for any fiscal year of the person.

• (6) For the purposes of this section and sections 7 and 8, if consideration for a supply of property or a service is deemed by section 152 of the Act to become due on a particular day and an amount of a tax, duty or fee that

  • (a) is prescribed by paragraph 3(b) or (c) of the Taxes, Duties and Fees (GST/HST) Regulations,

  • (b) is imposed in respect of the property or service, and

  • (c) is calculated on that consideration,

  has not become due on or before that day, the amount of that tax, duty or fee is deemed to have become due on that day.

• (7) For the purposes of this section and sections 7 and 8, if, under subsection 168(3), (6) or (7) of the Act, tax in respect of a supply of property or a service becomes payable by a person on a particular day,

  • (a) the consideration on which that tax is calculated, and

  • (b) any tax, duty or fee prescribed by paragraph 3(b) or (c) of the Taxes, Duties and Fees (GST/HST) Regulations that is payable by the person in respect of the property or service and has not become due on or before that day,

  are deemed to have become due on that day.

• 7 (1) A person is, on the first day of a claim period of the person, a prescribed person for the purpose of subsection 259(12) of the Act where

  • (a) the threshold amount for the person’s fiscal year that includes the claim period does not exceed $1,000,000;

  • (b) if the person’s fiscal quarter that includes the claim period is not the first fiscal quarter in the fiscal year, the threshold amount for the fiscal quarter does not exceed $1,000,000;

  • (c) the purchase threshold for the fiscal year does not exceed $4,000,000; and

  • (d) it is reasonable to expect at the beginning of the claim period that the purchase threshold for the person’s next fiscal year will not exceed $4,000,000.

• (2) A person ceases to be a prescribed person for the purpose of subsection 259(12) of the Act at the earliest of

  • (a) if the threshold amount for a fiscal year of the person exceeds $1,000,000, the end of the first fiscal quarter in that fiscal year,

  • (b) if the threshold amount for the second or third fiscal quarter in a fiscal year of the person exceeds $1,000,000, the end of the first fiscal quarter in that year for which the threshold amount exceeds $1,000,000, and

  • (c) if the purchase threshold for a fiscal year of the person exceeds $4,000,000, the end of the first fiscal quarter in that fiscal year.

• 8 (1) If

  • (a) personal property or a service is supplied in Canada to a particular person by another person or tangible personal property is supplied outside Canada to a particular person by another person and imported by the particular person, and

  • (b) the particular person is entitled to claim a rebate under section 259 of the Act in respect of the property or service for any claim period of the particular person,

  for the purpose of determining in accordance with these Regulations the amount of a rebate under that section in respect of the property or service for a particular claim period of the particular person, the amount of tax under subsection 165(1) or (2) or section 212 or 212.1 of the Act, as the case may be, that became payable, or was paid without having become payable, by the particular person during the particular claim period in respect of the supply or importation of the property or service is deemed to be equal to the amount determined by the formula

  A x B

  where

  A

  is

  • (a) if neither tax under subsection 165(2) of the Act nor tax under section 212.1 of the Act was payable in respect of the acquisition or importation, in the case of tax payable under subsection 165(1) or section 212 of the Act, the amount determined by the formula

    C/D

    where

    C

    is the rate set out in subsection 165(1) of the Act, and

    D

    is the total of 100% and the percentage determined for C, and

  • (b) if tax under subsection 165(2) or section 212.1 of the Act was payable in respect of the acquisition or importation,

    • (i) in the case of tax payable under subsection 165(1) or section 212 of the Act, the amount determined by the formula

      E/F

      where

      E

      is the rate set out in subsection 165(1) of the Act, and

      F

      is the total of 100%, the percentage determined for E and the tax rate for the participating province in which the supply was made or, in the case of an importation, in which the particular person is resident, and

    • (ii) in the case of tax payable under subsection 165(2) or section 212.1 of the Act, the amount determined by the formula

      G/H

      where

      G

      is the tax rate for the participating province in which the supply was made or, in the case of an importation, in which the particular person is resident, and

      H

      is the total of 100%, the percentage determined for G and the rate set out in subsection 165(1) of the Act, and

  B

  is the total of all amounts each of which is

  • (a) the consideration that became due, or was paid without having become due, by the particular person during the period in respect of the supply of the property or service to the particular person,

  • (b) the tax under Division II or III of Part IX of the Act that became payable, or was paid without having become payable, by the particular person during the period in respect of the supply or importation of the property or service,

  • (c) in the case of tangible personal property that was imported by the particular person, the amount of a tax or duty imposed in respect of the property under the Act (other than Part IX), the Customs Act, the Special Import Measures Act or any other law relating to customs that became due, or was paid without having become due, by the particular person during the period,

  • (d) the amount of a tax, duty or fee prescribed by paragraph 3(b) or (c) of the Taxes, Duties and Fees (GST/HST) Regulations that became due, or was paid without having become due, by the particular person during the period in respect of the property or service, other than tax imposed under an Act of the legislature of a province to the extent that the tax is recoverable by the particular person under that Act,

  • (e) a reasonable gratuity paid by the particular person during the period in connection with the supply, or

  • (f) interest, a penalty or other amount paid by the particular person during the period if the amount was charged to the particular person by the supplier of the property or service because an amount of consideration, or an amount of a tax, duty or fee referred to in paragraph (c) or (d), that was payable in respect of the supply or importation was overdue.

• (2) For the purpose of determining in accordance with these Regulations the amount of a rebate under section 259 of the Act payable to a partnership, employer, charity or public institution in respect of property or a service acquired or imported by a member of the partnership, an employee of the employer, or a volunteer who has given services to the charity or public institution and in respect of which the member, employee or volunteer was liable to pay tax under Division II or III of Part IX of the Act, the amount of that tax is deemed, for the purpose of applying section 175 of the Act, to be equal to the amount that would be determined under subsection (1) if that subsection applied to the acquisition or importation by the member, employee or volunteer.