How to Calculate GST Rebate

by Dan Howard ; Updated July 27, 2017
Canada charges a federal goods and services tax (GST) on most purchases.

Most good and services that are purchased in Canada are subject to a seven-percent goods and sales tax (GST), in addition to any provincially mandated taxes. Some purchases are exempt from GST, with the most common exemption being a purchase of goods for commercial use by a business located outside of Canada. For exempt purchases, the GST must be paid at the time of the sale, but may be refunded at a later date. The Canada Revenue Agency provides forms that may be used to calculate the amount of GST rebate due and to file for a rebate.

Step 1

Locate and photocopy your receipts for all purchases for which you paid GST. You'll need these for calculation purposes and to mail in with your rebate application.

Step 2

Obtain a copy of Form GST189, the general application for rebate of GST/HST, from the Canada Revenue Agency (see Resource section). Fill in the first page of the application with information about your business and the reason you are claiming an exemption from GST.

Step 3

Calculate the amount of GST rebate that you are due. If you are claiming an exemption because you paid GST in error, because you are not a Canadian resident, because you are a member of a Native American entity or because you are a non-resident who paid for an installation service in Canada, then you are due the full amount of GST that you paid.

If you are claiming an exemption for any other reason, then you are only due rebate for a portion of the GST that you paid. There is no set formula for partial rebates, as there are different methods for determining partial rebates based on your purchases and the specific exemption that you are claiming. Download the General Application for GST/HST Rebates from the Canada Revenue Agency (see Resource section), and review the specific requirements for calculation for your exemption reason, located between pages eight and 23 of the application instructions.

Step 4

Write the total amount of rebate that you are due in Part C, Section I of the GST189 form.

Step 5

Fill out the remainder of the GST189 rebate form and return the form along with your original receipts to:

Summerside Tax Centre 275 Pope Rd. Summerside PE C1N 6A2

About the Author

Dan Howard is a sports and fitness aficionado who holds a master's degree in psychology. Howard's postgraduate research on the brain and learning has appeared in several academic books and peer-reviewed psychology journals.

Photo Credits

  • A businessman calculating expenses at tax time image by Christopher Meder from Fotolia.com
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