GST/HST Public Service Bodies’ Rebate (PSB Rebate)

The Public Service Bodies’ (PSB) rebate lets eligible organizations claim a portion of the GST or the federal part of the HST paid or payable on eligible purchases and expenses used in their activities. The rebate may also include part of the provincial portion of the HST, depending on the province in which the organization is resident. ([canada.ca](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/public-service-bodies.html))

📌 Who Is Eligible?

You may qualify for a PSB rebate if your organization is one of the following:

a registered charity (including a charity running a non-profit health-care facility);
a qualifying non-profit organization (NPO), meaning it operates exclusively for non-profit purposes and receives at least 40 % government funding of its total revenue for the fiscal year; or
a selected public service body, such as a municipality, school authority, hospital authority, public college, or university (operated otherwise than for profit).

📥 How to Apply for the PSB Rebate

To claim the rebate, complete Form GST66 — Application for GST/HST Public Service Bodies’ Rebate. If applicable, also complete the provincial schedule (Form RC7066-SCH) for claiming part of the provincial HST. You can file online or on paper:

Online via GST/HST NETFILE, or the “File a rebate” option in My Business Account or Represent a Client (for authorized representatives).
By paper — mail your completed forms to the address shown on the form.

If you are a qualifying NPO, you must also file Form GST523-1 — Non-profit Organizations – Government Funding for each fiscal year to establish your eligibility based on government funding.

📏 Calculating the PSB Rebate

The rebate amount is a percentage of the GST/HST you cannot recover as an input tax credit (ITC). The percentage — called a rebate factor — depends on your organization’s type and its activities. There are two main calculation methods:

Regular method — based on non-creditable tax charged;
Simplified method — alternative calculation allowed in certain cases.

For example, municipalities often qualify for a 100 % federal rebate and varying provincial amounts depending on province; charity rebate factors may be 50 % for the federal part and different provincial percentages. See the CRA PSB rebate charts for the exact factors.

📆 Filing Deadlines

If you are a GST/HST registrant, you can file a PSB rebate application within four years from the due date of the GST/HST return for the claim period in which the GST/HST was paid or became payable. If you are not registered for GST/HST, you have four years from the last day of the claim period.

🔄 Carrying Forward a Rebate

In some cases, you may be able to claim a rebate for tax paid in an earlier period on a later rebate application, provided certain conditions are met (e.g., consistent rebate factor and continuous organizational status). There are specific rules for how far you can carry forward eligibility.

📍 Key Activities and Factors

Rebate factors and eligibility vary based on your activities and province of residence. Common PSB categories include:

Municipalities (high federal and varied provincial rebate factors)
Universities or affiliated colleges (non-profit educational/research activities)
School authorities (primary/secondary education)
Hospital authorities and facility operators (health-care supplies and related expenses)
Charities and public institutions on non-selected public service body activities
Qualifying NPOs on eligible activities

Each category has its own rebate factor — for example, many charities qualify for a 50 % rebate on the federal part of GST/HST on eligible purchases, plus provincial rebates where applicable. The detailed charts on the CRA site show these factors by province and activity line.