GST/HST Info Sheet GI-062

May 2010

Harmonized Sales Tax for Ontario, British Columbia and Nova Scotia - Point-of-Sale Rebate on Feminine Hygiene Products

The governments of Ontario, British Columbia and Nova Scotia have each announced that they will provide a point-of-sale rebate of the provincial part of the HST payable on qualifying feminine hygiene products. The CRA and the Canada Border Services Agency (CBSA) will administer these rebates on behalf of the governments of Ontario, British Columbia and Nova Scotia.

In this publication:

"Consumer" means an individual who acquires or imports qualifying feminine hygiene products for the individual’s personal consumption or use, or for the personal consumption or use of another individual.

"Provincial part of the HST" means the 8% Ontario part of the HST, the 7% British Columbia part of the HST or the 10% Nova Scotia part of the HST.

"Qualifying feminine hygiene products" means goods designated by the governments of Ontario, British Columbia and Nova Scotia as qualifying feminine hygiene products and satisfying prescribed conditions. More information is available under the heading "Goods qualifying for the rebate".

"Rebate" means the point-of-sale rebate of the provincial part of the HST payable on qualifying feminine hygiene products, which will be provided by the governments of Ontario, British Columbia and Nova Scotia.

"Recipient" of qualifying feminine hygiene products means the person who is liable to pay for the feminine hygiene products. When no amount is due, it means the person to whom the feminine hygiene products are delivered or made available. A recipient could be a wholesaler, retailer or consumer.

Who would be eligible for the rebate

The rebate will be available to all persons that:

• are recipients of qualifying feminine hygiene products sold in Ontario, British Columbia or Nova Scotia;
• are resident in Ontario, British Columbia or Nova Scotia and that import qualifying feminine hygiene products in circumstances where the provincial part of the HST will be payable on the importation; and
• receive delivery or possession of qualifying feminine hygiene products in, or bring qualifying feminine hygiene products into, Ontario, British Columbia or Nova Scotia in circumstances where the provincial part of the HST will be payable on the feminine hygiene products.

The rebate will be available at any point in the distribution chain of the qualifying feminine hygiene products. For example, the rebate will be available to persons that are wholesalers, retailers or consumers of qualifying feminine hygiene products.

Goods qualifying for the rebate

The following goods will be qualifying feminine hygiene products for purposes of the rebate:

• sanitary napkins;
• tampons;
• sanitary belts; and
• other goods marketed exclusively for purposes similar to the purposes for which sanitary napkins, tampons and sanitary belts are marketed (e.g., menstrual cups).

The following goods will not be qualifying feminine hygiene products for purposes of the rebate, and therefore, no rebate will be available in respect of the provincial part of the HST payable on these goods:

• deodorants;
• douches;
• sprays;
• syringes; and
• feminine wipes.

How to claim the rebate

Recipients of qualifying feminine hygiene products sold in Ontario, British Columbia or Nova Scotia will receive their rebate by:

• being paid or credited the rebate amount by the registrant supplier (e.g., a producer, wholesaler or retailer) at the point of sale; or
• filing a rebate claim with the CRA.

Rebate amount paid or credited by registrant suppliers

Generally, recipients of qualifying feminine hygiene products sold in Ontario, British Columbia or Nova Scotia will automatically have their rebate paid or credited to them at the point of sale by the registrant supplier that sold the feminine hygiene products to them.

The rebate amount that a registrant supplier will pay or credit to the recipient will equal the amount of the provincial part of the HST that will be payable by the recipient on the sale of the qualifying feminine hygiene products.

A registrant supplier that pays or credits the rebate amount at the point of sale will collect only the 5% federal part of the HST on the sale of the qualifying feminine hygiene products. Information on how a registrant supplier discloses the rebate amount paid or credited is available under the heading "How registrant suppliers show the rebate on their invoices".

Filing rebate claims with the CRA

If the registrant supplier does not pay or credit the rebate amount at the point of sale, then the recipient of the qualifying feminine hygiene products sold in Ontario, British Columbia or Nova Scotia will be able to file a rebate claim with the CRA using Form GST189, General Application for Rebate of GST/HST.

The rebate amount that the CRA will pay to the recipient will equal the amount of the provincial part of the HST that the recipient paid on the sale of the qualifying feminine hygiene products. The recipient will have to file Form GST189 within four years after the day the provincial part of the HST became payable.

If the registrant supplier does not pay or credit the rebate amount at the point of sale and the recipient of the qualifying feminine hygiene products sold in Ontario, British Columbia or Nova Scotia is a registrant acquiring the feminine hygiene products for use or supply in the course of a commercial activity, then the recipient will be able to claim an input tax credit (ITC) to recover the 5% federal part of the HST paid. The recipient will also be able to file a rebate claim with the CRA, using Form GST189, to recover the provincial part of the HST paid. The recipient will have to file this form within four years after the day the provincial part of the HST became payable.

Residents importing qualifying feminine hygiene products

Generally, persons that are resident in Ontario, British Columbia or Nova Scotia and that import qualifying feminine hygiene products in circumstances where the provincial part of the HST will be payable on the importation will automatically have their rebate deducted by the CBSA from the HST payable.

The rebate amount that the CBSA will deduct will equal the amount of the provincial part of the HST that will be payable by the person on the imported qualifying feminine hygiene products. The CBSA will, therefore, collect only the 5% federal part of the HST on the imported qualifying feminine hygiene products.

Similarly, where a non-resident supplier (e.g., a non-resident producer, wholesaler or retailer) that is not registered for GST/HST purposes sends qualifying feminine hygiene products by mail or courier to an address in Ontario, British Columbia or Nova Scotia, the CBSA will automatically deduct the rebate amount from the HST payable on the importation and collect only the 5% federal part of the HST.

Persons bringing qualifying feminine hygiene products into Ontario, British Columbia or Nova Scotia

In certain circumstances, a person that brings qualifying feminine hygiene products into Ontario, British Columbia or Nova Scotia will have to self-assess the provincial part of the HST on these feminine hygiene products. Generally, the person will be eligible for a rebate equal to the amount of the provincial part of the HST payable by the person on the qualifying feminine hygiene products.

Rebate for registrants

If the person is a registrant, the person will account for the provincial part of the HST self-assessed on the qualifying feminine hygiene products brought into Ontario, British Columbia or Nova Scotia on its regular GST/HST return for the reporting period in which the tax became payable.

The person will receive the rebate by claiming a deduction for the rebate amount on the return for the reporting period in which the tax became payable.

Rebate for non-registrants

If the person is not a registrant, the person will normally account for the provincial part of the HST self-assessed on the qualifying feminine hygiene products brought into Ontario, British Columbia or Nova Scotia on Form GST489, Return for Self-Assessment of the Provincial Portion of the Harmonized Sales Tax (HST), no later than the last day of the month after the calendar month in which the tax became payable.

How registrant suppliers show the rebate on their invoices

When disclosing the HST on an invoice or receipt issued in respect of the sale of qualifying feminine hygiene products to which the registrant supplier has paid or credited the rebate amount at the point of sale, the registrant supplier may show:

• the total amount of the HST payable (or the total HST rate) with the rebate amount paid or credited shown separately;
• the total HST payable as an amount net of the rebate amount paid or credited; or
• the total price of the qualifying feminine hygiene products that includes HST at a net rate of 5%.

How registrant suppliers account for the rebate on their GST/HST returns

A registrant supplier that pays or credits the rebate amount at the point of sale will have two options for accounting for the rebate amount on its GST/HST return.

First, the registrant supplier may account for the total HST collected or collectible (i.e., 13% for Ontario, 12% for British Columbia and 15% for Nova Scotia) on line 103 of the return, and claim an adjustment for the rebate amount paid or credited on line 107.

Second, the registrant supplier may show the net amount as the HST collected or collectible (i.e., 5%) on line 103, and not claim an adjustment for the rebate amount paid or credited on line 107.