Gst/Hst Rebates For Charities And Npos 2025 — How To Recover Sales Tax And Improve Cash Flow

Charities and non-profit organizations (NPOs) in Canada are eligible to recover a significant portion of the GST/HST and QST they pay on purchases. However, many fail to claim their rebates due to complex eligibility rules and documentation requirements. In 2025, CRA and Revenu Québec have increased audit checks on rebate claims. Mackisen CPA Auditors Montreal helps organizations file accurate claims, maintain compliance, and maximize refunds to improve liquidity and fund their missions.

Legal and Regulatory Framework

Excise Tax Act (Canada) Section 259: Establishes rebate entitlement for charities and qualifying non-profit organizations.
GST/HST Memorandum 13.5: Defines eligible purchases and documentation requirements.
Taxation Act (Quebec) Section 1017: Provides QST rebates for registered charities and qualifying public institutions.
CRA GST66 Form and Revenu Québec VD-350.44.1: Required for federal and provincial rebate applications.
Public Service Body Rebate Regulation 2025: Specifies varying rebate percentages for charities (50%), NPOs (50%), and public service bodies (83%).

Key Court Decisions

Saint John YMCA v. Canada (2018): Confirmed that GST rebates apply only to purchases directly related to exempt charitable activities.
Cystic Fibrosis Canada v. The Queen (2021): Reaffirmed that organizations must maintain documentation linking expenses to charitable output.
Montreal Arts Foundation v. Quebec (2020): Required QST rebate documentation for all invoices exceeding $150.

Why CRA and Revenu Québec Audit Rebates

Rebate claims often exceed regular business refund amounts. CRA and Revenu Québec verify that claimed purchases directly support charitable activities and not taxable business operations. Common audit issues include missing receipts, ineligible capital expenditures, and late filings. Mackisen ensures accurate documentation, timely submissions, and audit defense to secure every refund.

Mackisen’s Strategy

1. Eligibility Review — Determine qualifying status under Excise Tax Act and Quebec regulations.

2. Purchase Reconciliation — Identify eligible expenses by activity type.

3. Documentation Verification — Gather and validate all invoices, receipts, and contracts.

4. Filing Management — Complete and submit GST66 and VD-350.44.1 applications.

5. Audit Response — Represent clients during CRA or Revenu Québec verification.

Real Client Experience

A Montreal charity underclaimed GST rebates for two years. Mackisen reviewed records, refiled corrected claims, and recovered $62,000. A Quebec community center audited for documentation errors passed CRA review after Mackisen rebuilt their purchase records.

Common Questions

Can I claim rebates on all purchases? Only those used in charitable or exempt activities.
Are QST rebates separate? Yes, Quebec rebates require separate filings.
How far back can I claim? Up to four years from the claim period.

Why Mackisen

Mackisen CPA Auditors Montreal are experts in charity and NPO tax compliance. We maximize rebate recovery, prepare audit-proof filings, and improve your organization’s cash flow. Call Mackisen CPA Auditors Montreal today for your 2025 Rebate Consultation. The first meeting is free and ensures your organization claims everything it deserves.