To be considered an non-profit organization (NPO) for GST/HST, the NPO must have at least 40% government funding. That funding does not necessarily need to be in the current year. It can be in the previous 2 years, or if the previous year was your first year in existence.
New changes to the GST523 form came out this year that is intended to streamline reporting by the NPO and increase accuracy of processing by the CRA. Although the new updated form is an additional page and collects more information, we welcome the update, as it will likely lead to less errors on the GST523 form.
We have come across many NPO’s that have simply completed their GST523 incorrectly, due to misunderstanding the instructions on the form or in the guide.
If you have had a GST523 form rejected or require assistance, please get in touch with us. There are often adjustments on the revenue calculations that are overlooked, or other methods of claiming your GST rebates other than the NPO line on the Public Service Body Rebate.