News and Insights

Update to CRA’s Guide RC4082, “GST/HST Information for Charities”

Tax Development Sep 26, 2012

This guide, which explains how GST/HST applies to registered charities and registered Canadian amateur athletic associations, was recently updated to reflect the proposed change announced in the 2012 federal budget to allow a GST/HST rebate for books given away free by prescribed literacy organizations. In addition, this guide includes information on the Canada Revenue Agency’s (CRA) new online services available for use by charities. 

Under the existing legislation, a rebate of the GST and the federal portion of the HST on certain printed books and audio recordings of those books, may be claimed by prescribed charities and prescribed non-profit organizations whose primary purpose is the promotion of literacy.  However, this rebate was not available on printed books acquired for resale or to be given away free of charge.  In an effort to promote literacy, the federal government proposed in its 2012 budget, to extend this rebate to include printed books and qualifying materials, acquired or imported by a prescribed charity or qualifying non-profit organization, to be given away.  This measure will apply to GST or the federal portion of HST that becomes payable in respect of eligible items after March 29, 2012.  For more information, please refer to our March 2012 Tax Development, “Federal Budget 2012”.      

Recent improvements to the CRA’s online services have made it easier for businesses and charities to manage their accounts, file or adjust returns, file elections, and submit enquires for online responses within 10 business days.  

CRA RC4082