GST rebates

Taxable (including zero-rated) sales by all sectors are eligible for full rebate of tax paid on associated inputs through the input tax credit mechanism. However, certain sectors are also eligible for rebates of a portion of the GST paid on inputs into exempt sales. These rebates go to qualifying public-sector bodies such as municipalities, universities, schools, and hospitals (MUSH), as well as to qualifying public service organizations such as charities and non-profit organizations. GST rebates to these institutions minimize the impact of the GST on the cost of providing exempt public services. Other GST rebates include a rebate to foreign tourists for GST paid on hotel accommodation in Canada and goods taken out of the country, as well as a rebate of a portion of the GST paid on the purchase of a new home (excluding rental properties).