Enhanced Public Service Body Rebates for Hospitals, Schools, and Public Colleges in New Brunswick

New Brunswick has announced that it has entered into a Reciprocal Taxation Agreement with the Government of Canada that will provide eligible hospital authorities, school authorities, and public colleges in the province with a 100% public service body (PSB) rebate for the provincial component of the HST payable on qualifying purchases of goods and services, effective April 1, 2024. This enhanced rebate is in addition to the PSB rebate for the federal component of the HST available to eligible entities.

Previously, these entities were not eligible for a PSB rebate of the provincial component of HST paid. However, they were eligible for a 100% government entity GST/HST rebate administered by the province.

The enhanced PSB rebate for the provincial component of the HST will apply to claim periods ending on or after April 1, 2024. However, the enhanced rebate will not apply to:

• HST that became payable before April 1, 2024;
• Amounts deemed to have been paid (e.g., on an employee reimbursement or allowance) or collected prior to April 1, 2024; or
• Amounts required to be added when determining an entity’s net tax due to a branch or division of the entity becoming a small supplier division before April 1, 2024, or where an entity ceases to be a registrant before April 1, 2024.

In summary, effective April 1, 2024, eligible hospital authorities, school authorities, and public colleges in New Brunswick can apply for PSB rebates using the following percentages:

Further details on the enhanced PSB rebate in New Brunswick can be found here.

If you have any questions about the availability or calculation of PSB rebates, please contact Ryan TaxDirect® at taxdirect@ryan.com or 1.800.667.1600.