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HST Rebates Provincial Component

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Sales Taxes  ->  GST/HST  ->  Place of Supply Rules -> Rebates  of the provincial component of the HST

Goods & Services Brought Into a Province With Lower (or no) HST

A participating province is a province which charges HST, which includes a federal component (5%) and a provincial component.  A non-participating province charges 5% GST only, and no provincial component.  For rates by province/territory, see Sales Tax Rates in Canadian Provinces and Territories.

Under the current rebate rules, if you purchase goods or services in a participating province, but you use, consume or supply them within a non-participating province, you may be able to apply for a rebate of the provincial portion of the HST.  The tangible personal property must be removed from the participating province to the non-participating province within 30 days after delivery to the buyer, and the buyer must provide proof that applicable provincial retail sales tax, in the non-participating province, has been paid.

No rebate is available if you are able to claim an input tax credit for the GST/HST.

Due to the fact that the provincial component of the HST varies between provinces, the rebate rules are being expanded.

To qualify for a rebate, the amount of the rebate would have to be at least $5.  Also, the amount of tax for which a single rebate application is made must be at least $25.

Tangible Personal Property

The expanded rebate rule also applies if goods are purchased in a participating province, and are then brought into another participating province where the provincial component of the HST is lower.  The amount of the tax rebate would be calculated by taking the difference in the provincial components, and multiplying by the consideration paid for the property.  The tangible personal property must be removed from the province of purchase to the other province within 30 days after it is delivered to the buyer.

Example:  A BC resident purchases a wedding dress in Ontario for $3,000, paying 13% HST, or $390.  BC's HST rate is 12%.  On return to BC, the BC resident would be able to apply for a rebate of tax on the $3,000 at the rate of 1% x $3,000, or $30.  If the purchaser had been an Alberta resident, and brought the dress back to Alberta, which charges only 5% GST and no provincial retail sales tax, the tax rebate amount would be 8% x $3,000, or $240.

Services and Intangible Personal Property (IPP)

The expanded rebate rule for services and intangible personal property (IPP) would also apply when IPP or a service is acquired in a province for consumption, use or supply "significantly" (generally, 10% or more) in participating provinces for which the provincial component of the HST is lower than in the province of acquisition.

Imports of Non-Commercial Goods

Under the old rules, you are eligible for a rebate if

bulletyou are a resident of a participating province and paid HST on goods that you imported into Canada but outside the participating provinces;
bulletthe goods were not imported to be consumed or used in any participating province; and
bulletyou have paid all taxes on the goods, if any, that are imposed by non-participating provinces.

Under the expanded rebate rules, a rebate may be applied for to recover all or a portion of the provincial component of the HST on goods that are imported by a resident of a participating province at a place outside the participating province, but that are for consumption or use exclusively in another province for which the provincial component of the HST is lower than the provincial component of the HST that was paid.

For more detail on these HST rebates, see the Department of Finance topic Rebates of the Provincial Component of the HST.

The rules on rebates can be found in the Canada Revenue Agency (CRA) GST/HST web page on GST/HST Rebates.

See also CRA Guide RC4033 General Application for GST/HST Rebates, which includes forms.

Revised: September 19, 2017

 

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