Excise and GST/HST News – No. 117

August 2024

Table of Contents

• Public service bodies’ rebate rate increases for New Brunswick
• Whitecap Dakota Nation
  • Self-government treaty
  • First Nations goods and services tax
  • GST/HST relief
• Ka:’yu:’k’t’h’/Che:k’tles7et’h’ First Nations: End of the First Nations goods and services tax on their Lands
• Fuel Charge – reporting on biofuels and hydrogen
• Changes to reporting lines when electronically filing your GST/HST Return
• Prescribed rates of interest
• Forms and publications
• Contact us

Public service bodies’ rebate rate increases for New Brunswick

Effective April 1, 2024, school authorities and public colleges that are established and operated otherwise than for profit and hospital authorities resident in New Brunswick are eligible for a 100% public service bodies’ (PSB) rebate of the provincial part of the harmonized sales tax (HST). This change represents an increase in the rate of the PSB rebate of the provincial part of the HST from 0% for these PSBs. In general, the new rates apply for the purpose of determining a hospital authority, school authority or public college’s PSB rebate for claim periods ending on or after April 1, 2024. For more information on the PSB rebate rate increases refer to New Brunswick 100 per cent provincial HST rebate for hospital authorities, school authorities and public colleges.

Also effective April 1, 2024, eligible health authorities, school districts and community colleges will no longer be entitled to a 100% government rebate of the GST/HST under the Canada-New Brunswick Comprehensive Integrated Tax Coordination Agreement (Canada?New Brunswick CITCA).

The PSB rebate rates for the goods and services tax (GST) and the federal part of the HST paid or payable on eligible purchases and expenses will remain the same for these PSBs, that is 83% for hospital authorities, 68% for school authorities and 67% for public colleges.

Charities and qualifying non-profit organizations (qualifying NPOs) resident in New Brunswick that are not selected public service bodies (SPSBs) and facility operators and external suppliers resident in New Brunswick are eligible for a 50% rebate of the provincial part of the HST. SPSBs resident in New Brunswick that are also charities, public institutions, or qualifying NPOs (other than universities) are also eligible for a rebate of 50% of the provincial part of the HST but only in respect of their non-SPSB activities. In addition, hospital authorities resident in New Brunswick that are also public institutions or qualifying NPOs are eligible for a rebate of 50% of the provincial part of the HST in respect of activities other than the operation of a public hospital. For more information on the PSB rebate, refer to Guide RC4034, GST/HST Public Service Bodies’ Rebate.

If a hospital authority, school authority or public college is a GST/HST registrant, its claim periods are the same as the reporting periods for its GST/HST returns (that is, annual, quarterly or monthly). If a hospital authority, school authority or public college is not a GST/HST registrant (a non-registrant), it has two claim periods per fiscal year – the first six months and the last six months of its fiscal year. A branch or division of a hospital authority, school authority or public college that has received authorization to file separate GST/HST returns and/or PSB rebate applications has the same claim period as the hospital authority, school authority or public college as a whole.

The PSB rebate calculation is based on the hospital authority, school authority or public college’s non-creditable tax charged for the claim period. Non-creditable tax charged for a particular claim period only includes the GST/HST that became payable during the claim period or that was paid during the claim period without having become payable. Therefore, a hospital authority, school authority or public college resident in New Brunswick cannot claim a 100% PSB rebate of the provincial part of the HST that was payable in claim periods ending before April 1, 2024. For more information on the definition of non-creditable tax charged, refer to GST/HST Memorandum 13-5, Non-creditable Tax Charged.

In general, a hospital authority, school authority or public college may be able to claim a PSB rebate of the GST/HST paid or payable on an eligible purchase or expense for a particular claim period on the rebate application for a later claim period. However, carrying-forward is only permitted where the applicable PSB rebate rate did not change at any time from the beginning of the claim period in which the GST/HST was paid or payable to the end of the later period where the PSB would be claiming the rebate. Therefore, hospital authorities, school authorities, and public colleges resident in New Brunswick would not be permitted to carry forward a PSB rebate for a claim period beginning before April 1, 2024, to the rebate application for a subsequent claim period ending on or after April 1, 2024. For more information on carrying forward a rebate, including the conditions that must be met to be eligible, refer to Guide RC4034, GST/HST Public Service Bodies’ Rebate under the heading “Carrying forward a rebate”.

Special transitional rules apply if a hospital authority, school authority or public college’s claim period straddles April 1, 2024. The 100% PSB rebate of the provincial part of the HST is not available in respect of:

• tax that became payable before April 1, 2024;
• an amount included in the definition of non-creditable tax charged that is deemed to have been paid or collected before April 1, 2024; or
• an amount that is required to be added in determining the person’s net tax as a result of a branch or division of the person becoming a small supplier division before April 1, 2024, or as a result of the person ceasing to be a registrant before April 1, 2024.

In the above cases (for example, GST/HST that became payable before April 1, 2024), eligible health authorities, school districts and community colleges may continue to claim a 100% government rebate of the GST/HST under the Canada?New Brunswick CITCA.

For more information on the special transitional rules, refer to New Brunswick 100 per cent provincial HST rebate for hospital authorities, school authorities and public colleges.

Whitecap Dakota Nation

Self-government treaty

On May 2, 2023, the Whitecap Dakota Nation (WDN^Footnote1) and the Government of Canada signed a Self-Government Treaty Recognizing the Whitecap Dakota Nation/Wapaha Ska Dakota Oyate (Governance Treaty), which took effect on September 1, 2023. The Governance Treaty established a new government-to-government relationship between the WDN and the Government of Canada to promote cooperation and partnership between both parties, while reducing the application of certain sections of the Indian Act. However, the Governance Treaty does not affect the eligibility of the WDN and WDN Members^Footnote2 for the tax exemptions under section 87 of the Indian Act.

First Nations goods and services tax

Since January 2, 2009, the First Nations goods and services tax (FNGST), known as the Whitecap Community Improvement Fee, has been imposed on supplies of goods and services made on or delivered to WDN Reserve Lands ^Footnote3. According to subsection 3(1) of the First Nations Goods and Services Tax Act, the exemption of taxes under section 87 of the Indian Act does not apply to the FNGST. Everyone, including an individual registered under the Indian Act, is required to pay the FNGST, except for certain provincial and territorial governments. For more information, refer to GST/HST Memorandum 18-2, Provincial Governments.

Therefore, everyone, including a WDN Member who is registered under the Indian Act, must pay the FNGST on goods and services acquired on or delivered to WDN Reserve Lands. For more information, refer to GST/HST Notice 240, First Nations Goods and Services Tax (FNGST) Imposed by the Whitecap Dakota First Nation.

GST/HST relief

The WDN and WDN Members who are registered under the Indian Act are entitled to relief of the GST/HST provided the conditions in GST/HST Technical Information Bulletin B-039, GST/HST Administrative Policy – Application of the GST/HST to Indians are met. However, where a person acquires goods on a GST/HST-relieved basis and brings them onto the lands of a First Nation that imposes an FNGST (for example, on WDN Reserve Lands), they may have to self-assess the FNGST on those goods. For more information on the “self-assessment” of the FNGST, refer to “Bringing TPP onto lands where an FNGST applies” in GST/HST Technical Information Bulletin B-102, First Nations Goods and Services Tax – Place of Supply.

Ka:’yu:’k’t’h’/Che:k’tles7et’h’ First Nations: End of the First Nations goods and services tax on their Lands

On March 17, 2020, the Ka:’yu:’k’t’h’/Che:k’tles7et’h’ First Nations Government imposed a First Nations goods and services tax (FNGST) on the Maanulth Lands of the Ka:’yu:’k’t’h’/Che:k’tles7et’h’ First Nations^Footnote4. On January 26, 2024, they signed an Agreement to Terminate the First Nations Goods and Services Tax Administration Agreement with the Government of Canada.

Effective June 11, 2024, the FNGST is no longer imposed on the Maanulth Lands of Ka:’yu:’k’t’h’/Che:k’tles7et’h’ First Nations. Instead, as of that date, the GST applies to taxable supplies of property or services made on these lands.

However, individuals registered under the Indian Act are eligible for the GST/HST relief on purchases of property and services when the requirements described in GST/HST Technical Information Bulletin B-039, GST/HST Administrative Policy – Application of the GST/HST to Indians are met.

For more information refer to GST/HST Notice 337, Ka:’yu:’k’t’h’/Che:k’tles7et’h’ First Nations: End of the First Nations Goods and Services Tax (FNGST) on Their Lands.

Fuel Charge – reporting on biofuels and hydrogen

Under the Greenhouse Gas Pollution Pricing Act (the Act), a registered distributor may report and pay a charge on a reduced volume of certain types of fuels using specific formulas:

• When the proportion of biogasoline contained in a quantity of gasoline exceeds 10%, the number of litres to be reported is determined by the formula in subsection 8(5) of the Act;
• When the proportion of biodiesel contained in a quantity of light fuel oil exceeds 5%, the number of litres to be reported is determined by the formula in subsection 8(6) of the Act;
• When a quantity of aviation fuel contains a proportion of bio-aviation fuel, the number of litres to be reported is determined by the formula in section 1.2 of the Fuel Charge Regulations (the Regulations) for the purposes of subsection 8(8) of the Act;
• When a quantity of marketable natural gas or non-marketable natural gas contains a proportion of biomethane, the number of cubic metres to be reported is determined by the formula in subsection 8(7) of the Act;
• When a quantity of marketable natural gas or non-marketable natural gas contains a proportion of hydrogen, the number of cubic metres to be reported is determined by the formula in subsection 1.3(1) of the Regulations for the purposes of subsection 8(8) of the Act; and
• When a quantity of marketable natural gas or non-marketable natural gas contains a combined proportion of biomethane and hydrogen, the number of cubic metres to be reported is determined by the formula in subsection 1.3(2) of the Regulations for the purposes of subsection 8(8) of the Act.

The reduction in volumes is not shown on the prescribed schedules and must be supported in the registered distributor’s records.

For more information on the fuel charge program, go to Fuel charge.

Changes to reporting lines when electronically filing your GST/HST Return

Effective May 13, 2024, the Canada Revenue Agency has changed the way your business must electronically report the net tax calculation on the following forms:

• GST34, Goods and Services Tax/Harmonized Sales Tax (GST/HST) Return
• RC7200, Goods and Services Tax/Harmonized Sales Tax (GST/HST) and Quebec Sales Tax (QST) Return for Selected Listed Financial Institutions

The following new reporting lines have been added to GST/HST NETFILE and My Business Account:

GST34 and RC7200

• Line 103 – GST/HST collected or collectible
• Line 104 – Adjustments to be added to the net tax
• Line 106 – GST/HST paid or payable (ITCs)
• Line 107 – Adjustments to be deducted when determining the net tax

Lines 105 and 108 are no longer fillable fields. Line 105 will be automatically calculated based on the amount you entered on new lines 103 and 104. Line 108 will be automatically calculated based on the amount you entered on new lines 106 and 107 (for regular filers), or line 107 (for simplified filers).

RC7200

• Line 203 – QST collected or collectible
• Line 204 – Adjustments to be added to the net tax
• Line 206 – QST paid or payable (ITRs)
• Line 207 – Adjustments to be deducted when determining the net tax

For the QST portion of the RC7200, lines 205 and 208 are no longer fillable fields. Line 205 will be automatically calculated based on the amount you entered on new lines 203 and 204. Line 208 will be automatically calculated based on the amount you entered on new lines 206 and 207.

For more information on completing your GST/HST return, go to Instructions for completing a GST/HST Return.

Prescribed rates of interest

The prescribed annual rate of interest in effect from July 1, 2024 to September 30, 2024 on overdue amounts payable to the Minister is 9%. The prescribed annual rate of interest on amounts owed by the Minister (such as, rebates or refunds) is 5% for corporate taxpayers and 7% for non-corporate taxpayers. These rates are applicable to income tax, excise taxes, GST/HST, underused housing tax (UHT), air travellers security charge (ATSC), luxury tax, fuel charge (under the Greenhouse Gas Pollution Pricing Act) and excise duties on wine, spirits, tobacco, cannabis and vaping products.

The prescribed annual rate of interest respecting excise duty on beer products, on overdue amounts payable for the indicated period, is set at 7%. Refund interest rates are not applicable for amounts owed by the Minister (such as, rebates or refunds) for excise duty that is in relation to beer products.

Prescribed interest rates for previous years are available on Canada.ca at Prescribed interest rates.

Forms and publications

All GST/HST, underused housing tax, luxury tax, fuel charge, excise duties, and excise taxes and other levies technical publications can be found on the Technical tax information webpage on Canada.ca. To access all forms and publications go to Forms and publications, and for a list of new and revised publications go to the Canada Revenue Agency publications listed by number webpage. To access guides, returns and elections relating to the GST/HST go to GST/HST-related forms and publications.

To receive email notification as soon as a document is published on the Canada.ca website, go to Canada Revenue Agency electronic mailing lists and subscribe to the RSS feed for all new Canada Revenue Agency (CRA) publications and forms, or subscribe to any number of mailing lists for different types of publications.

Contact us

The Excise and GST/HST News is published quarterly and highlights recent developments in the administration of the GST/HST, the QST for SLFIs, the First Nations goods and services tax (FNGST) and the First Nations tax (FNT), the air travellers security charge (ATSC), the underused housing tax, the fuel charge, and the luxury tax as well as excise taxes and duties. If you would like to receive a link to each new edition of the Excise and GST/HST News as it is published, subscribe to the electronic mailing list. This publication is provided for information purposes only and does not replace the law, either enacted or proposed. Please note that any commentary in this newsletter regarding proposed measures should not be taken as a statement by the CRA that such measures will in fact be enacted into law in their current form. Comments or suggestions about the newsletter should be sent to the Editor, Excise and GST/HST News, GST/HST Rulings Directorate, Legislative Policy and Regulatory Affairs Branch, CRA, 5th Floor, Place de Ville, 320 Queen Street, Ottawa K1A 0L5.