Applying for and using HST rebates

Family Health Teams may apply to the Canada Revenue Agency for a ruling to confirm whether your FHT qualifies as a “facility operator” and therefore could claim a rebate 83% of the federal part of the HST and 87% of the provincial part of the HST.  FHTs are not obligated to apply for the HST credit.  Recommended practice but not required. FHTs that do are required to follow the following direction which is provided to them in their financial reporting guidelines: HST Rebates: Public Service Bodies (charities, municipalities, universities, public colleges, school authorities, hospital authorities and non-profit organizations) are eligible to claim rebates for the provincial and federal components of the HST paid or payable on most inputs used to provide exempt supplies.  FHTs are qualifying non-profit organizations since FHTs receive at least 40% of their funding from the provincial government.  FHTs should report actual costs net of the rebate and book the projected rebate as a receivable.  This way, financial statements reflect actual expenditures.  FHT should contact the Canada Revenue Agency for information and forms.  At the end of the fiscal year, the ministry will recover any HST rebate that the ministry did not approve for use by the FHT. For more information and to access the application form, click here to go to the “Facility Operator” page on the Canada Revenue Agency website.