How much GST/HST can a charity or NPO get back on Form GST66, and how do they file it?
Form GST66 gets a charity or qualifying NPO back 50% of the GST, or the federal 5% of HST, paid on purchases it cannot claim ITCs on. Ontario adds 82% of the 8% provincial part; Nova Scotia, New Brunswick, Newfoundland and Labrador and PEI add 50%. File within four years, with RC7066-SCH for the provincial part.
What rebate rate does each public service body get?
A charity or qualifying NPO gets 50% of the GST or the federal part of the HST back, and the provincial part depends on where it is resident: 82% in Ontario, 50% in Nova Scotia, New Brunswick, Newfoundland and Labrador and PEI, and nothing in a province without HST canada.ca. The federal rates are the "specified percentage" in section 259 of the Excise Tax Act
laws-lois.justice.gc.ca.
| Claimant | GST or federal HST | ON | NS | NB | NL | PEI | Province without HST |
|---|---|---|---|---|---|---|---|
| Charity | 50% | 82% | 50% | 50% | 50% | 50% | 0% |
| Qualifying NPO | 50% | 82% | 50% | 50% | 50% | 50% | 0% |
| Municipality | 100% | 78% | 57.14% | 57.14% | 57.14% | 0% | 0% |
| University | 67% | 78% | 67% | 0% | 0% | 0% | 0% |
| Public college | 67% | 78% | 67% | 100% | 0% | 0% | 0% |
| School authority | 68% | 93% | 68% | 100% | 0% | 0% | 0% |
| Hospital authority | 83% | 87% | 83% | 100% | 0% | 0% | 0% |
| Facility operator or external supplier | 83% | 87% | 50% | 50% | 0% | 0% | 0% |
Two dates matter on older claims. The 100% New Brunswick rate for school authorities, public colleges and hospital authorities isn't available for tax that became payable before April 1, 2024, and the PEI rate for charities and qualifying NPOs was 35% on tax payable before January 1, 2023 canada.ca. A hospital or university that is also a registered charity uses its own row for its selected activities, and the charity rate only for anything else.
How much does an Ontario charity get back on $20,000 of purchases?
Take an Ontario charity running exempt programs that spends $20,000 before tax in a quarter on supplies, advertising and equipment, all taxed at 13% HST, and can claim no ITCs on any of it. Split the HST into its federal 5% and provincial 8% parts, then apply each rate.
| Step | Federal part (5%) | Provincial part (8%) |
|---|---|---|
| HST paid on $20,000 | $1,000 | $1,600 |
| Rebate rate for an Ontario charity | 50% | 82% |
| Rebate | $500 | $1,312 |
| Where it goes | GST66 | RC7066-SCH, total carried to GST66 |
The charity gets $1,812 back, so its real HST cost on that $20,000 falls from $2,600 to $788. The provincial figure is worked on Form RC7066-SCH, which you attach to the GST66 only when you claim the provincial part canada.ca.
Residence decides the provincial rate, not where the purchase was made. A charity resident only in Alberta that buys in Ontario gets 50% of the federal 5% and nothing on the 8% canada.ca.
Who qualifies, and how does an NPO pass the 40% funding test?
Registered charities (and registered Canadian amateur athletic associations) qualify automatically. So do selected public service bodies: municipalities, school authorities, universities and public colleges, hospital authorities, facility operators and external suppliers. A non profit that isn't a charity qualifies only in a fiscal year where government funding is at least 40% of its total revenue. Listed financial institutions can't claim canada.ca.
The test is government funding divided by total revenue, with the government funding inside total revenue. If the current year falls short, the NPO can look back: in its second year it uses its first year, and from its third year on it uses the two years before the current one. Form GST523-1 holds the worksheet canada.ca.
Example: an NPO with $180,000 of government grants and $400,000 of total revenue is at 45%, so it claims at the 50% rate that year. At $150,000 of grants it would be at 37.5% and need its earlier years to pass.
Government funding means money that is easily identifiable, including a forgivable loan. Low interest loans, loan guarantees and other indirect or non financial help don't count canada.ca.
Which expenses can't go on a GST66?
The rebate only reaches tax your client can't recover any other way. Subtract any ITCs claimed, any other rebate or refund and any credit notes first, and leave out purchases used in commercial activities that ITCs already cover canada.ca. If your client also makes taxable supplies, the line between those and its exempt supplies decides what lands here.
The CRA lists these as ineligible canada.ca:
- Memberships in clubs whose main purpose is dining, recreation or sports facilities
- Tobacco, cannabis and alcohol your client supplies without collecting GST/HST
- Residential accommodation of one month or more, and tenant parking, unless more than 10% of the units are reserved for seniors, youth, students or people with disabilities or limited means
- Supplies that are a taxable benefit to the recipient for income tax purposes where no GST/HST was remitted
- Personal use property or services for officers, employees or members, unless supplied at fair market value in the same year or free of charge with no taxable benefit
- Joint venture costs where a coventurer would not itself be eligible
On goods that carry a provincial point of sale rebate, only the federal part of the HST can go on the GST66. If the store didn't credit the point of sale rebate, that piece is claimed on Form GST189 instead canada.ca.
How do you file a GST66, and by when?
Registered or not, your client files Form GST66 for each claim period in which it has a rebate. Every claimant completes Parts A, B, D and E; Part C is only for a registrant that wants the rebate on line 111 of its return canada.ca. The form itself is on the CRA forms page
canada.ca.
| GST/HST registrant | Not registered | |
|---|---|---|
| Claim period | Same as the reporting period: monthly, quarterly or annual | Two per fiscal year: the first six months and the last six months |
| Where the rebate goes | Line 111 of the return, with Part C completed | Paid on the application |
| How to file | Paper return: GST66 sent with it. Online return: file the GST66 online with it (GST/HST NETFILE, or "File a return" in My Business Account or Represent a Client), or mail it no later than the day you file | My Business Account or Represent a Client "File a rebate", or GST/HST NETFILE |
| Time limit | Four years after the due date of the return for the period the tax was incurred | Four years after the end of the claim period the tax was incurred |
The four year limit is in subsection 259(5) of the Excise Tax Act, and the CRA won't pay a rebate filed after it laws-lois.justice.gc.ca. One exception: if a supplier is assessed for tax it never charged your client and your client pays it after the four years, it can file for the period in which it actually paid
canada.ca. For the return lines themselves, see the GST/HST return lines page.
If your client files on paper, the CRA no longer mails the personalized GST284 and GST284-SCH, so use the blank GST66 and RC7066-SCH canada.ca.
Can a small charity use the simplified method?
Yes, if your client and its associates had $1 million or less of worldwide taxable supply revenue in the preceding fiscal year and the preceding quarters of the current year, and taxable purchases in Canada of $4 million or less in the preceding year with no more expected this year canada.ca. Instead of tracking the tax on every invoice, you total the eligible purchases tax included and pull the tax back out with a fraction.
| HST or GST rate on the purchases | Federal part | Provincial part |
|---|---|---|
| 5% GST | 5/105 | none |
| 13% (Ontario) | 5/113 | 8/113 |
| 14% (Nova Scotia) | 5/114 | 9/114 |
| 15% | 5/115 | 10/115 |
Leave out salaries, insurance, interest, exempt and zero rated items, purchases from unregistered suppliers, anything your client claims ITCs on, refundable provincial taxes and all real property. Real property tax goes in separately, after the fraction. The method can't be used for real property at all canada.ca.
Run the Ontario example this way: $22,600 of purchases tax included × 5/113 = $1,000, then × 50% = $500. And $22,600 × 8/113 = $1,600, then × 82% = $1,312. Same $1,812, without adding up the HST line on each receipt.
Sources
Does a charity on the net tax calculation method still file a GST66?
Yes. A registered charity that remits 60% of the GST/HST it charges under the net tax method can claim ITCs only on certain items, and it still claims the public service bodies rebate on eligible purchases it can't claim ITCs on, whether they relate to commercial or exempt activities canada.ca.
Does a charity have to register for GST/HST to claim the rebate?
No. An unregistered charity files the GST66 on its own, twice a year at most, one claim for each half of its fiscal year canada.ca. Most charities stay small suppliers under the $250,000 gross revenue or $50,000 taxable supplies tests covered on the registration threshold page.
What does a municipality in Alberta or BC get?
A municipality gets 100% of the GST back wherever it is, and there's no provincial part to claim in a province without HST canada.ca. Provincial sales tax like BC PST is outside the GST66 entirely.
How does a Quebec charity claim?
Through Revenu Québec. The CRA guide says Revenu Québec generally administers the GST/HST for organizations located in Quebec, so a Quebec charity files with Revenu Québec on its forms rather than with the CRA, and the QST rebate follows Quebec's own rules canada.ca.
General information for the tax year shown, not advice for a specific client. Confirm the facts before you file or remit.