Guide to the GST/HST and QST Rebate Application for Public Service Bodies

About this content

This content is a simplified paraphrase of Revenu Québec’s official publication: FP-2066.G(2025-10).pdf, produced to help citizens and entrepreneurs better understand their tax obligations. It does not constitute legal or tax advice. Refer to the official document for any decision.

Who this document is intended for

This guide is intended for public service bodies, also called PSBs, whether they are registered or not in the GST/HST and QST files, when they wish to submit an application using the form GST/HST and QST Rebate Application for Public Service Bodies (FP-2066). The bodies concerned may include, among others:

• charities;
• qualifying non-profit organizations;
• public institutions;
• hospital authorities;
• school authorities;
• public colleges;
• universities;
• municipalities;
• facility operators;
• external suppliers;
• self-governing bodies, in the cases provided for. This guide does not apply to organizations that want to recover GST/HST or QST paid in error. In that case, the process instead falls under the general rebate application using guide FP-2189.G. Only PSBs that reside in Québec may claim a rebate of QST, except in the special case of a rebate for certain goods or services shipped outside Québec by a charity or a public institution.

Context and purpose

This document explains how a public service body can claim certain rebates related to the goods and services tax, the harmonized sales tax, and the Québec sales tax. It accompanies the use of form FP-2066 and specifies the types of rebates that may be claimed with this form, the eligible bodies, the periods to be used, the calculation methods, the filing deadlines, the eligible and ineligible expenses, as well as special situations. The application may concern one or more of the following rebates:

• the GST/HST and QST rebate for public service bodies;
• the GST/HST rebate for certain printed books;
• the GST/HST and QST rebate for goods and services exported outside Canada or, for QST, shipped outside Québec by a charity or a public institution;
• the GST and the federal part of the HST applicable to a self-governing body.

Complete and detailed information

1. General information

1.1 Types of rebates that may be claimed with form FP-2066

Form FP-2066 may be used to claim:

• a GST/HST and QST rebate for public service bodies;
• a GST/HST rebate for printed books;
• a GST/HST and QST rebate for goods and services exported outside Canada or, for QST, shipped outside Québec by a charity or a public institution;
• a GST and federal part of the HST rebate for a self-governing body.

A PSB must not use this guide to claim a tax paid in error. This situation falls under another procedure.

1.2 Period covered by the rebate application

The period to be used depends on the organization’s registration status.

If the organization is registered

When a PSB is registered in the GST/HST and QST files, or is required to be, the period covered by the application normally corresponds to its GST/HST and QST reporting period. This period may be:

• monthly;
• quarterly;
• annual, depending on the organization’s fiscal year. The GST/HST claim period may, however, differ from the QST period. Reformulated example: a small supplier that is not registered for GST/HST may nevertheless be required to register for QST if it makes certain supplies, for example supplies of alcoholic beverages. In this case, QST may have to be reported each month, each quarter, or each year, whereas the GST/HST rebate application, since the organization is not registered for that file, must be filed every six months. The organization must then complete two separate FP-2066 forms: one for the semi-annual GST/HST claim and another for the applicable QST period.

If the organization is not registered

When a PSB is not registered in the GST/HST and QST files, and is not required to be, the claim period corresponds to one of the following two periods:

• the first six months of its fiscal year;
• the last six months of its fiscal year.

1.3 Separate returns for branches and divisions

An organization that has branches or divisions may request that they file separately:

• their returns;
• their rebate applications for PSBs;
• their applications relating to printed books. For a branch or division to file separately, it must meet the following conditions:
• it must occupy a location different from that of the organization’s other units or carry on activities of a different nature;
• it must keep separate books. The application for authorization or revocation of this filing method is made using the form Application for or Revocation of an Application to File Separate Returns or Rebate Applications (FP-2010). When branches or divisions file separate GST/HST and QST returns, they must also file separate rebate applications. Their claim period must, however, be the same as that of the head office. If a branch or division does not have authorization to file its rebate applications separately, the refundable taxes attributable to it must be included in the application filed by the head office.

1.4 Retention of documents

The organization must keep:

• its books;
• its records;
• the original invoices. These documents must be kept for six years from the end of the year to which they relate.

2. Important definitions

Eligible activities

These are activities carried on for one of the following purposes:

• making facility supplies;
• making ancillary supplies;
• providing medical goods or services at home;
• operating an eligible facility in order to make facility supplies there.

Activities other than those related to a specified public service body

This expression refers to activities that do not include:

• activities for which a person has received a designation as a municipality;
• activities carried on in carrying out responsibilities as a local authority;
• activities carried on to operate:
• a public hospital;
• a primary school;
• a secondary school;
• a post-secondary college;
• a technological institute;
• a recognized degree-granting institution;
• a college affiliated with such an institution;
• the research institute of such an institution;
• eligible activities.

Hospital authority

A hospital authority may be:

• a public institution within the meaning of the Act respecting health services and social services or the Act respecting health services and social services for Cree Native persons, when it operates a hospital centre;
• an institution that administers a public hospital and that has been designated as a hospital authority by the Minister of National Revenue.

School authority

A school authority is an institution that administers a primary or secondary school whose program meets the educational standards of the government of the province where the school is administered. In Québec, this notion includes:

• a school service centre;
• a school board;
• an establishment offering primary or secondary education and governed by the Act respecting private education. For the rebate intended for PSBs, the school authority must be organized and administered on a non-profit basis.

Public college

A public college may be:

• a college governed by the General and Vocational Colleges Act;
• an establishment approved to receive grants in respect of college-level teaching services under the Act respecting private education;
• an institution that administers a post-secondary college or a post-secondary technical institute and that meets both of the following conditions:
• it receives grants from a government or municipality to support the ongoing provision of educational services to the public;
• its main purpose is to provide vocational, technical, or general training programs. For the rebate intended for PSBs, the public college must be organized and administered on a non-profit basis.

Facility operator

A facility operator is an organization that operates an eligible facility and that is:

• a charity;
• a public institution;
• a qualifying non-profit organization. A hospital authority is not included in this definition.

External supplier

An external supplier is an organization that makes ancillary supplies, facility supplies, or supplies of medical goods or services at home, and that is:

• a charity;
• a public institution;
• a qualifying non-profit organization. Hospital authorities and facility operators are excluded from this definition.

Self-governing body

A self-governing body is a First Nation or an Inuit government that has entered into an agreement with the Government of Canada. The document mentions in particular the following self-governing bodies:

• Yukon First Nations that have entered into self-government agreements;
• the Nisga’a Nation;
• the Tlicho First Nation;
• the Tsawwassen First Nation;
• the Maa-nulth First Nations;
• the Tla’amin First Nation;
• the Déline First Nation;
• the Labrador Inuit, including the Nunatsiavut Government and the Inuit community governments.

Registrant

A registrant is a person registered in the GST/HST and QST files, or required to be. The document specifies that a person may be registered for QST without being registered for GST/HST. The example given in section 1.1 illustrates this situation.

Public institution

A public institution is a registered charity, within the meaning of the Income Tax Act and the Taxation Act, that is also one of the following bodies:

• a school authority;
• a public college;
• a university;
• a hospital authority;
• a local authority that has been granted the status of municipality for GST/HST or QST purposes by the Minister of National Revenue or the Minister of Revenue of Québec.

Printed book

A printed book is a book in printed form, but the definition excludes certain goods. The following are not considered printed books, nor works mainly composed of such items:

• newspapers;
• magazines and periodicals purchased otherwise than by subscription;
• magazines and periodicals of which more than 5% of the printed space is devoted to advertising;
• brochures;
• pamphlets;
• product catalogues;
• price lists;
• advertising material;
• warranty booklets;
• maintenance booklets;
• user guides;
• books intended mainly for writing in;
• colouring books;
• books mainly designed for drawing;
• books mainly designed to receive items such as clippings, pictures, coins, stamps, or stickers;
• cut-out books;
• books containing detachable items;
• event programs;
• performance programs;
• agendas;
• calendars;
• course outlines;
• schedules;
• directories;
• sets of charts;
• sets of street plans;
• sets of road maps;
• guides and atlases composed in whole or in part of maps other than street plans or road maps are not excluded by this rule;
• tariff books, for example insurance tariffs;
• sets of blueprints;
• sets of patterns;
• sets of stencils;
• goods excluded by regulation;
• sets or collections made up of items from the previous categories or similar items.

Municipality

A municipality includes in particular:

• a metropolitan authority;
• a city;
• a village;
• a township;
• a district;
• the Kativik Regional Government;
• a incorporated county;
• a incorporated rural municipality;
• any other incorporated municipal body, regardless of its designation;
• any other local authority that has been assigned municipality status for GST/HST or QST purposes by the Minister of National Revenue or the Minister of Revenue of Québec. For the rebate intended for PSBs, the term may also refer to a person designated as a municipality by the Minister of National Revenue or the Minister of Revenue of Québec, but only for the activities indicated in the designation. These activities must include the provision of municipal services by the person, excluding taxable supplies.

Non-profit organization

A non-profit organization, or NPO, is an entity:

• organized exclusively for non-profit purposes;
• administered exclusively for non-profit purposes;
• whose income cannot be paid to its owners, members, or shareholders;
• whose income cannot be made available to its owners, members, or shareholders for their personal benefit. An exception exists where the income is paid to a member that is an association whose main purpose is to promote amateur sport in Canada. The following entities cannot be considered NPOs:
• an individual;
• an estate;
• a trust;
• a charity;
• a public institution;
• a municipality;
• a government.

Qualifying non-profit organization

A qualifying NPO is:

• an NPO;
• or a prescribed government organization; of which at least 40% of the revenues from the current fiscal year or the two preceding fiscal years come from public funding.

Charity

A charity means:

• a registered charity;
• or a registered Canadian amateur athletic association; within the meaning of the Income Tax Act and the Taxation Act. A public institution is excluded from this definition. For the rebate intended for PSBs, the notion of charity also includes an NPO that operates, on a non-profit basis, all or part of a health facility whose purpose is to provide certain services to residents with limited capacity for self-care and independence because of physical or mental limitations. The services covered are:
• nursing and personal care provided under the direction or supervision of qualified medical and nursing staff;
• other personal care and supervision, except ordinary household services;
• assistance with activities of daily living;
• social services;
• recreational services;
• other related services intended to meet residents’ psychosocial needs;
• meals;
• accommodation.

Specified public service body

A specified public service body is one of the following bodies:

• a hospital authority;
• a municipality;
• a facility operator;
• an external supplier;
• a school authority organized and administered on a non-profit basis;
• a university organized and administered on a non-profit basis;
• a public college organized and administered on a non-profit basis.

Prescribed government organization

A prescribed government organization is a government organization that:

• is an agent of the federal Crown or of a provincial government, for example a Crown corporation;
• is organized exclusively for non-profit purposes;
• is operated exclusively for non-profit purposes;
• cannot pay its income to its owners, members, or shareholders;
• cannot make its income available to its owners, members, or shareholders for their personal benefit.

Tax deemed not to have been recovered

For a claim period, tax deemed not to have been recovered corresponds to the GST/HST or QST paid or payable on eligible purchases and expenses during that period, less certain amounts. The following must be deducted:

• any input tax credit, or ITC, and any input tax rebate, or ITR, that the organization has claimed or may claim in respect of any part of that GST/HST or QST;
• this deduction does not apply to non-registrants, since they cannot claim ITCs or ITRs;
• any rebate or refund of that GST/HST or QST that the organization has received or that it is reasonable to believe it may receive, including the rebates described in sections 4 to 6;
• any amount of GST/HST or QST refunded, credited, or adjusted in favour of the organization when it received a credit note from the supplier or issued a debit note to the supplier.

University

A university may be:

• a recognized degree-granting institution;
• an organization that administers a school affiliated with such an institution;
• the research institute of such an institution;
• a university-level educational establishment within the meaning of the Act respecting educational institutions at the university level. For the rebate intended for PSBs, the university must be organized and administered on a non-profit basis.

3. Rebate for public service bodies

An organization may claim a rebate for PSBs in respect of GST, the federal part of the HST, or QST deemed to have not been recovered on eligible purchases and expenses, if it is one of the following bodies:

• a charity;
• a qualifying NPO;
• a specified public service body. In certain situations, the organization may also be entitled to a rebate of the provincial part of the HST.

3.1 Organizations excluded from the rebate for PSBs

Certain organizations cannot claim this rebate. For GST/HST, the following are excluded:

• a listed financial institution;
• a registrant covered by the Gambling Regulations (GST/HST). For QST, the following are excluded:
• a listed financial institution;
• a prescribed registrant for the purposes of section 279 of the Québec Sales Tax Act.

3.2 Deadlines for filing the rebate application for PSBs

Registered or required-to-register organization

If the organization is registered in the GST/HST and QST files, or if it must be, it must file its application within four years following the day it is required to file its GST/HST and QST return for the period during which the expenses were incurred.

Non-registered and not required-to-register organization

If the organization is not registered in the GST/HST and QST files, and is not required to be, it must file its application within four years following the last day of the claim period during which it incurred the expenses.

Exception to the four-year limit

An exception applies when:

• the Minister assesses in writing a tax that a supplier had not requested the organization to pay during the claim period;
• the organization pays this tax after the expiry of the four-year period. In that case, the organization may file a separate rebate application for the claim period during which the tax was paid.

3.3 Calculation of the rebate for PSBs

The rebate for PSBs must be calculated using one of the following two methods:

• the regular method;
• the simplified method.

3.3.1 Eligible purchases and expenses

Only the following taxes may give rise to the rebate:

• GST paid or payable;
• the federal part of HST paid or payable;
• QST paid or payable; provided they relate to eligible purchases and expenses and are deemed not to have been recovered. The lines of form FP-2066 associated with these amounts include:
• lines 287 to 293;
• lines 297 to 299;
• lines 287-Q to 293-Q;
• lines 297-Q to 299-Q. Eligible purchases and expenses include in particular:
• operating overhead expenses for which the organization cannot claim ITCs or ITRs, for example:
• rent;
• utilities;
• administrative expenses;
• the cost of goods and services used, consumed, or supplied in the course of the organization’s exempt activities;
• the cost of capital property that the organization intends to use mainly, that is, more than 50%, in its exempt activities;
• most allowances and reimbursements paid to employees who participate in the organization’s exempt activities.

An important clarification applies to capital property: no rebate is possible when the main use of capital property changes from a commercial use to a non-commercial use, since the tax content of the capital property must already take into account the rebate for PSBs at the time of the change in use.

3.3.2 Ineligible purchases and expenses

Certain purchases and expenses do not qualify for the rebate for PSBs. The following are excluded in particular:

• purchases and expenses related to club membership dues for a club whose main purpose is to provide access to dining, recreational, or sporting facilities;
• excise-taxed products, such as:
• alcoholic beverages;
• tobacco products;
• cannabis products;
• vaping products;
• these excise-taxed products are excluded when they are supplied by the organization and the organization is not required to collect GST/HST or QST, except when they are included in the cost of a meal;
• goods and services purchased to provide long-term residential accommodation, that is, one month or more, unless more than 10% of the residential accommodations are intended for:
• seniors;
• youth;
• students;
• persons with disabilities;
• persons whose income makes them eligible for a rent-reduction program;
• goods and services used mainly, that is, more than 50%, to provide parking spaces to tenants, unless more than 10% of the residential accommodations associated with these spaces are intended for:
• seniors;
• youth;
• students;
• persons with disabilities;
• persons whose income makes them eligible for a rent-reduction program;
• goods and services purchased mainly, that is, more than 50%, to provide buildings to other persons who use them for exempt residential rental purposes, unless those persons are PSBs and more than 10% of the accommodations are offered to:
• seniors;
• youth;
• students;
• persons with disabilities;
• persons whose income makes them eligible for a rent-reduction program;
• goods and services supplied by the organization to another person when the value of the benefit would be taxable to that other person and the organization does not have to pay GST/ HST and QST on that supply;
• goods and services that the organization is deemed to have acquired as the contractor of a joint venture when an election form has been completed, if one of the participants in the joint venture would not be entitled to the rebate for PSBs if that participant acquired the goods and services itself;
• goods and services acquired to be supplied to an officer, employee, member, or person related to one of those persons, exclusively for that person’s personal consumption or use. For this last case, an exception applies if one of the following conditions is met:
• the organization supplies the good or service at fair market value during the year of acquisition, and GST/HST and QST are paid in respect of that supply;
• the organization supplies the good or service free of charge, and that good or service does not constitute a taxable benefit.

3.3.3 Federal part and provincial part of HST

When an organization purchases goods or services on which HST was paid, it must distinguish between:

• the federal part of HST, which corresponds to GST;
• the provincial part of HST. Form FP-2066 is used to claim the rebate of GST or the federal part of HST. Only PSBs resident in a participating province may be entitled to the rebate of the provincial part of HST for PSBs. To claim the rebate of the provincial part of HST, you must:
• complete the form Provincial Schedule – GST/HST Rebate for Public Service Bodies (FP-66.A);
• enter the total provincial amount claimed on line B of form FP-2066;
• attach form FP-66.A to the application. Québec is not a participating province.

3.3.4 PSBs resident in more than one province

When an organization resides in more than one province and at least one of those provinces is a participating province, the rebate of the provincial part of HST must be calculated according to the proportion in which the organization expects to use, consume, or supply the goods and services in each type of activity carried on in each province where it resides.

3.3.5 Organization carrying on several types of activities

An organization eligible for the rebate for PSBs may be, for example:

• a charity;
• a public institution;
• a qualifying NPO; while also being a specified public service body. When an organization purchases goods or services that will be used in different types of activities, the rebate must be calculated according to the proportion of use, consumption, or supply expected for each type of activity. If a specified public service body purchases goods and services intended mainly, that is, more than 50%, for the use of another specified public service body that is a separate entity, the applicable rebate rate is that of the other body. If a specified public service body carries on more than one type of specified public service body activities, for example hospital authority activities and school authority activities, and goods or services are intended mainly, that is, more than 50%, for a particular type of activity, the rebate rate depends on that main use.

3.4 Calculation methods for the rebate

Two methods may be used:

• the regular method;
• the simplified method.

3.4.1 Regular method

Under the regular method, the organization must calculate the amounts of GST, federal part of HST, and QST deemed not to have been recovered for all eligible purchases and expenses made during the claim period. These amounts must then be entered on the lines of form FP-2066 corresponding to the type of organization. If the organization resides in a participating province, it must also calculate the provincial part of HST deemed not to have been recovered for its eligible purchases and expenses for the period. It must complete form FP-66.A, multiply the amount of the provincial part of HST by the applicable rebate rate, and enter the total provincial amount claimed on line B of form FP-2066. If the organization resides in more than one province and at least one of them is a participating province, the special rules for residents of more than one province apply. If the organization may claim a rebate of the provincial part of HST, it cannot include amounts that have already been rebated at the point of sale for that provincial part, for example when purchasing printed books.

Steps of the regular method for GST/HST and QST

1. Calculate the GST deemed not to have been recovered for all eligible purchases and expenses, according to the type of organization. Enter the result on lines 287 to 293 and 297 to 299 of form FP-2066.
2. To determine the GST rebate:

• multiply the GST deemed not to have been recovered by the rebate rate shown in form FP-2066;
• enter the result on lines 300 to 306 and 310 to 312;
• add the amounts claimed and enter the total on line A.

3. If the PSB has a permanent establishment in a participating province, calculate the provincial part of HST deemed not to have been recovered for all eligible purchases and expenses, according to the type of organization.
4. To calculate the rebate of the provincial part of HST:

• multiply the provincial HST deemed not to have been recovered by the rebate rate shown in form FP-66.A;
• enter the result on the applicable lines of that form;
• add the amounts claimed;
• enter the total provincial amount claimed on line B of form FP-2066.

5. Add the amounts on lines A and B of form FP-2066 and enter the result on line 409.
6. Calculate the QST deemed not to have been recovered for all eligible purchases and expenses, according to the type of organization. Enter the result on lines 287-Q to 293-Q and 297-Q to 299-Q of form FP-2066.
7. To establish the QST rebate:

• multiply the QST deemed not to have been recovered by the rebate rate shown in form FP-2066;
• enter the result on lines 300-Q to 306-Q and 310-Q to 312-Q;
• add the amounts claimed and enter the total on line 409-Q.

3.4.2 Simplified method

The simplified method is intended to facilitate the calculation of the rebate for PSBs. It may be used by an organization registered or not registered in the GST/HST and QST files. Under this method, it is not necessary to separately identify the GST/HST and QST shown on each invoice. The organization must, however, keep the relevant documents so that they can be provided on request. If the organization is registered in the GST/HST and QST files, it must continue to:

• charge GST/HST and QST on its supplies according to the usual rules;
• collect these taxes;
• report these taxes. No separate form is required to inform Revenu Québec that the organization is using the simplified method.

Conditions for using the simplified method

The organization may use this method if all of the following conditions are met.

Limit on taxable supplies

The total worldwide taxable supplies, including those of associates, must not exceed $1,000,000:

• in the previous fiscal year;
• or in the previous quarters of the current fiscal year. This total excludes:
• sales of real property;
• supplies of financial services;
• goodwill.

Limit on taxable purchases and expenses

The total taxable purchases and expenses made in Canada or Québec, as applicable, must not have exceeded $4,000,000 during the organization’s last fiscal year. It must also be reasonable to expect that this total will not exceed $4,000,000 during the current fiscal year. This total:

• does not include zero-rated purchases and expenses;
• includes, as applicable:
• goods and services imported into Canada;
• goods and services brought into Québec.

Steps of the simplified method for GST/HST

1. Add separately the eligible purchases and expenses on which GST/HST was charged at the rates of:

• 5%;

• 13%;

• 14%;

• 15%. The totals must include:

• the purchase price;

• GST or HST;

• import duties;

• non-refundable provincial sales taxes;

• reasonable gratuities;

• interest and penalties for late payment. The following must be excluded:

• the portion of purchases and expenses for which the organization may claim ITCs;

• purchases and expenses on which the organization did not pay GST/HST, including:

• salaries;

• insurance premiums;

• interest paid;

• purchases and expenses related to exempt supplies;

• purchases and expenses related to zero-rated supplies;

• purchases and expenses made from a person not registered for GST/HST;

• purchases and expenses made outside Canada and not subject to GST/HST;

• the portion of ITCs for meals and entertainment that must be recaptured;

• refundable provincial sales taxes;

• purchases of real property;

• real property rental costs.

2. Calculate the GST or federal part of HST included in the taxable purchases and expenses:

• multiply the amount obtained in step 1 by the GST rate or by the rate of the federal part of HST;
• divide the result by 100 plus the GST or HST rate.

3. Add to the result of step 2 the GST or federal part of HST paid on:

• purchases of real property;
• real property rental costs; when the organization cannot claim ITCs for these amounts.

4. Enter the result of step 3 on lines 287 to 293 and 297 to 299 of form FP-2066, then multiply it by the rebate rate corresponding to the type of organization. If the organization carries on more than one type of activity, it must allocate the rebate according to the types of activities. If the organization resides in more than one province, and at least one is a participating province, it must calculate the rebate of the provincial part of HST according to:

• the proportion of use, consumption, or supply of the goods or services in the activities carried on in each province where it resides;
• the rebate rate or rates corresponding to its types of activities. Steps 5 and 6 must then be carried out for each province where the organization resides.

5. If the organization is entitled to a rebate of the provincial part of HST, multiply the total eligible purchases and expenses determined in step 1 by:

• 8/113 for taxable purchases and expenses at the 13% HST rate;
• 9/114 for taxable purchases and expenses at the 14% HST rate;
• 10/115 for taxable purchases and expenses at the 15% HST rate. Amounts already rebated at the point of sale for the provincial part of HST, for example for printed books, cannot be included in the calculation.

6. Complete form FP-66.A in order to determine the rebate of the provincial part of HST. Multiply the amount obtained in step 5 by the applicable rebate rate shown in this form. Then enter the total provincial amount claimed on line B of part 3.1 of form FP-2066.

Steps of the simplified method for QST

1. Add the eligible purchases and expenses on which QST was charged. The total must include:

• the purchase price;
• GST;
• import duties;
• QST;
• non-refundable provincial sales taxes;
• fees or duties imposed under an Act of Québec;
• reasonable gratuities;
• interest and penalties for late payment. The following must be excluded:
• the portion of purchases and expenses for which the organization may claim ITRs;
• purchases and expenses on which the organization did not pay QST, including:
• salaries;
• insurance premiums;
• interest paid;
• purchases and expenses related to exempt supplies;
• purchases and expenses related to zero-rated supplies;
• purchases and expenses made from a person not registered for QST;
• purchases and expenses made outside Québec and not subject to QST;
• the portion of ITRs for meals and entertainment that must be recaptured;
• refundable provincial sales taxes;
• purchases of real property;
• real property rental costs.

2. Multiply the total obtained in step 1 by 0.0907. Enter the result on lines 287-Q to 293-Q and 297-Q to 299-Q of the organization’s corresponding FP-2066 form.
3. Add the QST paid on purchases or rentals of real property for which no ITR may be claimed to lines 287-Q to 293-Q and 297-Q to 299-Q of the applicable FP-2066 form.
4. Calculate the QST rebate by multiplying the total entered on lines 287-Q to 293-Q and 297-Q to 299-Q by the applicable rebate rate. Enter the result on the line corresponding to the amount of rebate claimed.

3.5 Carryforward of a rebate

An organization may carry forward a GST/HST and QST rebate for PSBs to a later claim period when the required conditions are met.

This possibility applies if:

• the organization was entitled to a rebate for a good or service for a given claim period;
• it did not claim that rebate for that period;
• it claims it in a later claim period ending after September 8, 2017. All of the following conditions must be met:
• the GST/HST and QST rebate must not have been previously claimed;
• the application for the later period must be filed:
• no later than two years after the day the organization was required to file its GST/HST and QST return for the given claim period, if the organization is registered or required to be;
• no later than two years and three months after the last day of the given claim period, if the organization is not registered and is not required to be;
• between the first day of the given claim period and the last day of the later claim period, the organization must not become or cease to be a PSB eligible for the GST/HST and QST rebate for PSBs;
• throughout that entire period, the rebate rates must remain the same, so that the amount would be identical whether claimed for the initial period or for the later period. Reformulated example: a PSB whose reporting period is quarterly wants to claim a GST/HST and QST rebate that became payable on an eligible purchase on January 27, 2020. It does not claim it for the January to March 2020 period and instead claims it for the July to September 2020 period. The rebate will be granted only if all carryforward conditions are met. The following rebates cannot be carried forward to a later claim period:
• the rebate for printed books;
• the rebate for goods and services exported outside Canada;
• the rebate for goods and services shipped outside Québec, in the case of QST;
• the rebate for a self-governing body. These rebates must be claimed for the period during which the taxes were paid or became payable.

4. Rebate for printed books

A specified person within the meaning of the Excise Tax Act may claim a rebate of 100% of the GST payable on:

• printed books;
• updates to printed books;
• sound recordings of printed books;
• printed versions of the Scriptures of a religion. Certain goods are not considered printed books for rebate purposes. These exclusions are those listed in the definition of “printed book”. Printed books must not be acquired or imported for the purpose of:
• being resold;
• being subsequently given away;
• being transferred to another person as part of the supply of another good or service. An exception exists for charities or qualifying NPOs that are prescribed and whose main mission is literacy. These organizations may obtain the GST rebate for printed books acquired or imported to be given away. The amount claimed must be entered on line 307 of form FP-2066. This rebate does not apply under the QST system, since the sale of printed books bearing an ISBN is zero-rated for QST purposes. The document specifies that the same applies in the rare cases where the sale would be taxable.

4.1 Deadline for claiming the rebate for printed books

The specified person must file its application within four years after the last day of the claim period during which the tax became payable.

4.2 Specified persons for the printed books rebate

For the purposes of this rebate, a specified person may be:

• a public college;
• a school authority;
• a municipality;
• a university;
• a charity, a public institution, or a qualifying NPO that operates a public lending library;
• a charity or a qualifying NPO that is prescribed and whose main mission is literacy.

5. Rebate for goods and services exported outside Canada or shipped outside Québec

A charity or a public institution may claim a rebate of 100% of the GST/HST paid on goods or services that it exports outside Canada. A charity or a public institution may also claim a rebate of 100% of the QST paid on goods or services shipped outside Québec, even if the organization does not reside in Québec. The rebate applies only to the taxes paid when the goods or services were purchased. It does not allow the GST/HST or QST paid as part of the exportation itself to be recovered. The amounts must be entered:

• on line 308 of form FP-2066 for the GST/HST rebate;
• on line 308-Q of form FP-2066 for the QST rebate.

5.1 Deadline for filing the application

The charity or public institution must file its application within four years after the last day of the fiscal year in which the tax became payable in respect of the supply.

6. Rebate for a self-governing body

A self-governing body may obtain a rebate of GST or the federal part of HST for goods and services acquired in the course of its activities. When a self-governing body is a First Nation that has entered into an agreement with the Government of Canada, it may be entitled to a rebate of 100% of the GST or federal part of HST paid or payable on goods and services. The applicable conditions and terms are set out in each agreement. The rebate must be claimed on line 309 of form FP-2066. The applicable deadline for the application is the one specified in the agreement.

Special cases and exceptions

PSBs residing in Québec only for QST

Only a PSB that resides in Québec may claim a QST rebate for PSBs. However, a charity or a public institution may claim a rebate of 100% of the QST paid on goods or services shipped outside Québec, even if it does not reside in Québec.

Different periods for GST/HST and QST

An organization may have a different claim period for GST/HST and for QST, notably when it is not registered for GST/HST but is registered for QST. It must then file separate FP-2066 forms for the applicable periods.

Branches and divisions

Branches and divisions may file separately only if they are authorized to do so and if they meet the applicable conditions. Otherwise, their refundable amounts must be included in the head office’s application.

Capital property

Capital property may be eligible if it is intended mainly, that is, more than 50%, for the organization’s exempt activities. However, no rebate is possible when the main use of capital property changes from commercial to non-commercial, because the calculation of the tax content already takes the PSB rebate into account at the time of the change in use.

Long-term residential accommodation

Purchases and expenses related to long-term residential accommodation, that is, one month or more, are generally ineligible, unless more than 10% of the accommodations are intended for certain groups: seniors, youth, students, persons with disabilities, or persons eligible for a rent-reduction program based on income.

Parking spaces

Goods and services used mainly, more than 50%, to provide parking spaces to tenants are generally excluded, unless more than 10% of the residential accommodations related to the parking spaces are intended for the groups specified in the document.

Buildings supplied to other persons for exempt residential rental

Goods and services purchased mainly, more than 50%, to provide buildings to other persons who use them for exempt residential rental are generally excluded. The exception applies where those other persons are PSBs and more than 10% of the accommodations are intended for the groups covered.

Goods or services supplied to employees, members, or related persons

Goods or services intended exclusively for the personal use of an officer, employee, member, or related person are excluded, unless:

• they are supplied at fair market value during the year of acquisition and the taxes are paid;
• or they are supplied free of charge and do not constitute a taxable benefit.

Provincial part of HST

The rebate of the provincial part of HST is available only to PSBs resident in a participating province. Québec is not a participating province.

Point-of-sale rebates

When an organization may claim a rebate of the provincial part of HST, it cannot include amounts already rebated at the point of sale, notably for printed books.

Organization carrying on several types of activities

When an organization carries on several types of activities, it must allocate its purchases and expenses according to their expected use. If the main use, that is, more than 50%, is related to a particular type of specified public service body, the rebate rate is based on that main use.

Carryforward of a rebate

Carryforward of a rebate is possible only for the GST/HST and QST rebate intended for PSBs, and only when all the prescribed conditions are met. It is not possible for:

• printed books;
• goods and services exported outside Canada;
• goods and services shipped outside Québec;
• self-governing bodies.

Printed books given away

Printed books purchased or imported to be given away are normally not eligible for the rebate, except for prescribed charities or qualifying NPOs whose main mission is literacy.

Self-governing body

The terms and deadline for a self-governing body’s rebate depend on the agreement entered into with the Government of Canada.

Procedures and steps

General application using form FP-2066

To submit a rebate application covered by this guide, the organization must use form FP-2066. Depending on the type of rebate, the amounts must be entered on the following lines:

Type of rebate	Lines of form FP-2066
GST or federal part of HST for PSBs	Lines 287 to 293, 297 to 299, then 300 to 306 and 310 to 312
Total federal rebate claimed	Line A
Provincial part of HST	Line B, after calculation on form FP-66.A
Total GST/HST	Line 409
QST for PSBs	Lines 287-Q to 293-Q, 297-Q to 299-Q, then 300-Q to 306-Q and 310-Q to 312-Q
Total QST	Line 409-Q
Printed books	Line 307
Goods and services exported outside Canada	Line 308
Goods and services shipped outside Québec for QST	Line 308-Q
Self-governing body	Line 309

Provincial schedule FP-66.A

When the organization claims a rebate of the provincial part of HST, it must:

1. complete form FP-66.A;
2. calculate the rebate using the applicable rate;
3. enter the total provincial amount claimed on line B of form FP-2066;
4. attach form FP-66.A to the application.

Separate filing application for branches or divisions

For a branch or division to file its returns and applications separately, the organization must use form FP-2010. Authorized branches or divisions must file separate applications, but their claim period must be identical to that of the head office.

Choice of calculation method

The organization must choose between:

• the regular method;
• the simplified method. No form is required to indicate use of the simplified method.

Retention of supporting documents

The organization must keep its books, records, and original invoices for six years from the end of the year to which they relate. Even with the simplified method, relevant documents must be available on request.

Main deadlines

Type of application	Deadline
Rebate for PSBs — registered or required-to-register organization	Within 4 years after the day the GST/HST and QST return had to be filed for the period in which the expenses were incurred
Rebate for PSBs — organization not registered and not required to be	Within 4 years after the last day of the claim period in which the expenses were incurred
Exception related to a ministerial assessment	Separate application possible for the period in which the tax was paid, even after the 4-year deadline
Carryforward of a rebate — registered or required-to-register organization	No later than 2 years after the day the return had to be filed for the initial period
Carryforward of a rebate — organization not registered and not required to be	No later than 2 years and 3 months after the last day of the initial period
Printed books	Within 4 years after the last day of the claim period in which the tax became payable
Goods and services exported outside Canada or shipped outside Québec	Within 4 years after the last day of the fiscal year in which the tax became payable
Self-governing body	According to the deadline provided for in the applicable agreement

Important warnings

• The guide does not apply to claims involving GST/HST or QST paid in error.
• Only a PSB residing in Québec may claim a QST rebate for PSBs.
• A registered organization must file the application according to its applicable reporting period.
• A non-registered organization must use semi-annual periods corresponding to the first six or last six months of its fiscal year.
• Branches and divisions must be authorized to file separately; otherwise, their amounts must be included in the head office’s application.
• Books, records, and original invoices must be kept for six years.
• Listed financial institutions and certain registrants related to gambling or prescribed under the Québec Sales Tax Act cannot claim the rebate for PSBs.
• ITCs, ITRs, rebates, refunds, credits, and adjustments already claimed or obtained must be excluded from the calculation of tax deemed not to have been recovered.
• Ineligible purchases and expenses must not be included, even if they were taxed.
• The simplified method does not exempt the organization from keeping its supporting documents.
• A registered organization using the simplified method must continue to charge, collect, and report taxes normally.
• Québec is not a participating province for HST.
• Amounts already rebated at the point of sale for the provincial part of HST cannot be claimed again.
• Carryforward of a rebate is strictly limited to the rebate for PSBs and does not apply to rebates for printed books, exported goods and services, or goods and services shipped outside Québec, nor to self-governing bodies.
• For self-governing bodies, the conditions, terms, and deadlines vary depending on the applicable agreement.
• Certain sections of the document refer to other publications or guides for additional information; those references do not alter the rules set out in this guide.

Summary

This guide explains how public service bodies may claim certain GST/HST and QST rebates using form FP-2066. The main rebates are for PSBs, printed books, certain goods and services exported outside Canada or shipped outside Québec, as well as self-governing bodies. The rules vary according to the organization’s registration status, claim period, type of activities, province of residence, and the nature of the purchases or expenses. The deadlines are generally four years, but special rules apply to carryforward of a rebate, ministerial assessments, and self-governing bodies. Eligible expenses must be reduced by ITCs, ITRs, rebates, refunds, credits, and adjustments already obtained or available. Two calculation methods are possible: the regular method and the simplified method, the latter being limited in particular by the thresholds of $1,000,000 in taxable supplies and $4,000,000 in taxable purchases and expenses. Organizations must keep their books, records, and original invoices for six years. Certain rebates, such as those relating to printed books or exports, cannot be carried forward to a later period.