How to Calculate the HST Rebate for Charities in Canada

If your charity or nonprofit buys goods or services in Canada, you’ve likely paid the Harmonized Sales Tax (HST). The good news is that many registered charities and some nonprofits can get part of that money back from the government. This is called an HST rebate.

This guide will help you understand how to calculate your rebate, what rate applies, and which form you need to use. We’ve made it simple so anyone can follow along, even if it’s your first time.

What is the HST Rebate for Charities and Nonprofits?

When your organization buys something, you usually pay HST, which is a mix of federal and provincial taxes. The federal part is the GST (Goods and Services Tax), and the provincial part depends on where you are in Canada.

Charities and some nonprofit organizations can claim a rebate on a portion of the HST they pay. This helps them save money and put more funds toward their programs and services.

What Is the HST Rebate Rate for Charities?

Here’s how the rebate usually works:

• 50% rebate on the federal part (GST) of the HST for registered charities
• 82% rebate on the federal part (GST) for qualifying nonprofit organizations that run facilities like hospitals or schools
• The provincial portion rebate varies by province. For example:
  • In Ontario, charities can get 82% of the Ontario portion of HST
  • In Prince Edward Island, it’s 50% of the provincial portion

Not all provinces offer a provincial rebate, so it's important to check what applies in your province.

How to Calculate the HST Rebate

Let’s walk through an example:

Imagine your charity bought office supplies and paid $113 in total. That includes $100 for the items and $13 HST (which is 13% in Ontario).

Step 1: Break the HST into federal and provincial parts

• Ontario’s HST rate is 13%
• 5% is federal (GST) = $5
• 8% is provincial = $8

Step 2: Apply the rebate rate

• Federal GST rebate (50% of $5) = $2.50
• Ontario portion rebate (82% of $8) = $6.56

Step 3: Add the rebates
$2.50 + $6.56 = $9.06 total rebate

So your charity can claim back $9.06 out of the $13 HST paid.

What Is the HST Rebate Form for Nonprofits?

To apply for the rebate, you need to complete Form GST66 – Application for GST/HST Public Service Bodies’ Rebate. You’ll also need Schedule A (or B) depending on your type of organization.

Here’s what you’ll need to prepare:

• Your total eligible expenses
• The amount of HST paid
• The amount of rebate you're claiming
• Your charity’s Business Number (BN)

You can file this form online using the CRA’s My Business Account, or you can mail it in.

When Should You File?

You should file the rebate within four years from the end of the year when you paid the HST. For example, if you paid HST in 2021, you have until the end of 2025 to apply for that rebate.

Final Tips for Canadian Charities

• Only registered charities and certain nonprofits can apply for the full rebate. If you're not sure about your status, check with the CRA.
• Keep receipts and records for all purchases where HST was charged.
• You don’t need to register for HST to claim the rebate unless you also collect HST on your own services or goods.

By claiming the HST rebate, Canadian charities and nonprofits can reduce their costs and free up more money to help their communities. It's worth taking the time to understand the rules and apply them properly.

If you need help, speak with an accountant or bookkeeper who specializes in charity and nonprofit accounting, tax filing, and bookkeeping or visit the CRA website for more details.

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