The federal government already offered a rebate of a portion of the GST paid by certain Public Service Bodies. This now applies to the federal portion of HST, and Ontario will now also offer a rebate on the provincial portion.

Public Service Body Rebate – The Harmonized Sales Tax actually consists of two components; the 5% federal component and the provincial component, which is 8% in each participating province except BC, which has a 7% provincial component. 

The federal government offers a rebate of a portion of the GST paid by certain Public Service Bodies.  The rate of rebate depends on the type of organization and will apply to the federal portion of the HST upon harmonization.   

Ontario will offer a rebate on the provincial portion of the HST, and has undertaken a study to determine a rebate rate that should result in an economically neutral net result.  With the exception of municipalities, all of the rates are more favorable than the federal rebate.  The comparison of the rebates is outlined below: