NPO-09 — Charities use a special net tax calculation — this is a different regime from NPOs

Charities use a special net tax calculation — this is a different regime from NPOs, not a variation of it. A registered charity generally remits 60% of the GST/HST it was required to charge on most taxable supplies, whether or not it actually collected the tax, and claims ITCs only on certain items. 100% is remitted on taxable sales of capital and real property (including deemed sales), appropriations to members, taxable employee benefits, agent and auctioneer supplies, tax collected in error, and bad-debt recoveries on capital or real property. On the ITC side the charity claims 100% ITCs on purchases of, or improvements to, capital or real property used primarily (more than 50%) in commercial activities. Net tax is line 105 minus line 108