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

**Flag: Current** — Verified against the live source. Safe to cite.

**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

## Sources

- RC4082 (primary): https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4082/gst-hst-information-charities.html

Jurisdiction: FED · Verified 2026-08-27 · Review: legislative