On April 7, 2022, the Government of Canada unveiled its
2022 federal budget ("Budget 2022") and announced certain
important commodity tax measures. Budget 2022 includes proposed
amendments to past proposals, as well as some completely new
rules.
The highlights of Budget 2022 from a commodity tax standpoint
are set out below. Readers may also be interested in Stikeman
Elliott's general
commentary on Budget 2022.
GST/HST Health Care Rebate
Under the current Goods and Services Tax/Harmonized Sales Tax
("GST/HST") rules, hospitals can generally claim an 83
percent rebate and charities and non-profit organizations can claim
a 50 percent rebate of the GST/HST that they pay on inputs used in
their exempt supplies. In 2005, the 83 percent rebate was expanded
to cover eligible charities and non-profit organizations that
provide health care services similar to those traditionally
performed in hospitals. One of the conditions to be eligible for
the expanded hospital
