Form GST23 "Election and Revocation of the Election by a Public Sector Body (Other Than a Charity) to Have Its Exempt Memberships Treated as Taxable Supplies" - Canada

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Download Form GST23 "Election and Revocation of the Election by a Public Sector Body (Other Than a Charity) to Have Its Exempt Memberships Treated as Taxable Supplies" - Canada

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when completed
Election and Revocation of the Election by a Public Sector Body
(Other than a Charity) to have its Exempt Memberships Treated as Taxable Supplies
Use this form to elect or revoke an election to have the GST/HST apply to otherwise exempt memberships if you are a public service body
other than a charity. This form must be completed by the public service body’s head office and kept with its books and records for a period of
six years from the end of the year to which it relates.
Note
Do not use this form if you want to treat your exempt professional memberships as taxable. Use Form GST24, Election and Revocation
of the Election to Tax Professional Memberships.
This election is not available to charities.
Section A – Identification
Legal name
Business number
R T
Type of public sector body (tick one box only)
Government
Non-profit organization
Municipality
School authority
Hospital authority
Public college
University
Section B – Membership information
Classes of memberships
If you have different classes of supplies of memberships that do not have the same fees, rights, and privileges as other classes, you can make this election on
a class-by-class basis.
Which classes of memberships do you wish to treat as taxable? (attach a list if necessary)
All
Other
Section C – Election
The public sector body elects to have the memberships or classes of memberships specified in Section B treated as taxable supplies.
Year
Month
Day
Effective date of this election:
I,
, certify that the information given on this form and on any attached document is, to the best of my
(print name)
knowledge, true, correct, and complete in every respect, and that I am authorized to sign on behalf of the registrant.
Signature
Year
Month
Day
Section D – Revoking the Election
(Complete this section to revoke a previously made election.)
The public sector body revokes the election to have the memberships or classes of memberships specified in Section B treated as taxable supplies.
Year
Month
Day
Effective date of this revocation:
I,
, certify that the information given on this form and on any attached document is, to the best of my
(print name)
knowledge, true, correct, and complete in every respect, and that I am authorized to sign on behalf of the registrant.
Signature
Year
Month
Day
Personal information is collected under the Excise Tax Act to administer tax, rebates, and elections. It may also be used for any purpose related to the enforcement of the Act such
as audit, compliance and collection activities. It may be shared or verified with other federal, provincial, territorial or foreign government institutions to the extent authorized by law.
Failure to provide this information may result in interest payable, penalties or other actions. Under the Privacy Act, individuals have the right to: access their personal information;
request corrections; or, file a complaint to the Privacy Commissioner of Canada regarding the handling of the individual's personal information. Refer to Personal Information Bank
CRA PPU 241 on Info Source at canada.ca/cra-info-source.
GST23 E (18)
(Ce formulaire est disponible en français.)
Clear Data
Protected B
when completed
Election and Revocation of the Election by a Public Sector Body
(Other than a Charity) to have its Exempt Memberships Treated as Taxable Supplies
Use this form to elect or revoke an election to have the GST/HST apply to otherwise exempt memberships if you are a public service body
other than a charity. This form must be completed by the public service body’s head office and kept with its books and records for a period of
six years from the end of the year to which it relates.
Note
Do not use this form if you want to treat your exempt professional memberships as taxable. Use Form GST24, Election and Revocation
of the Election to Tax Professional Memberships.
This election is not available to charities.
Section A – Identification
Legal name
Business number
R T
Type of public sector body (tick one box only)
Government
Non-profit organization
Municipality
School authority
Hospital authority
Public college
University
Section B – Membership information
Classes of memberships
If you have different classes of supplies of memberships that do not have the same fees, rights, and privileges as other classes, you can make this election on
a class-by-class basis.
Which classes of memberships do you wish to treat as taxable? (attach a list if necessary)
All
Other
Section C – Election
The public sector body elects to have the memberships or classes of memberships specified in Section B treated as taxable supplies.
Year
Month
Day
Effective date of this election:
I,
, certify that the information given on this form and on any attached document is, to the best of my
(print name)
knowledge, true, correct, and complete in every respect, and that I am authorized to sign on behalf of the registrant.
Signature
Year
Month
Day
Section D – Revoking the Election
(Complete this section to revoke a previously made election.)
The public sector body revokes the election to have the memberships or classes of memberships specified in Section B treated as taxable supplies.
Year
Month
Day
Effective date of this revocation:
I,
, certify that the information given on this form and on any attached document is, to the best of my
(print name)
knowledge, true, correct, and complete in every respect, and that I am authorized to sign on behalf of the registrant.
Signature
Year
Month
Day
Personal information is collected under the Excise Tax Act to administer tax, rebates, and elections. It may also be used for any purpose related to the enforcement of the Act such
as audit, compliance and collection activities. It may be shared or verified with other federal, provincial, territorial or foreign government institutions to the extent authorized by law.
Failure to provide this information may result in interest payable, penalties or other actions. Under the Privacy Act, individuals have the right to: access their personal information;
request corrections; or, file a complaint to the Privacy Commissioner of Canada regarding the handling of the individual's personal information. Refer to Personal Information Bank
CRA PPU 241 on Info Source at canada.ca/cra-info-source.
GST23 E (18)
(Ce formulaire est disponible en français.)
Clear Data
General information
The head office has to complete this form. Keep it with your
What is an exempt membership?
organization's records while the election is in effect and for six years
Sales of memberships made by public sector bodies, excluding
after the end of the year to which the election relates. You have to
charities, can be exempt or taxable depending on the type of benefits
make it available for audit. For more information, see Guide RC4081,
the members are entitled to. The following benefits are permitted
GST/HST Information for Non-Profit Organizations, or
when determining whether sales of memberships made by public
call 1-800-959-5525.
sector bodies are exempt:
Effect of this election
• an indirect benefit that is intended to accrue to all members
collectively (for example, a trade association that substantially
If you elect to have the exempt memberships of your public sector
improves sales or lobbying by a ratepayers' association on behalf
body treated as taxable supplies, you have to take them into account
of all members);
in determining if you have to register for GST/HST and in
determining your reporting period.
• the right to receive services supplied by the public sector body
that are in the nature of investigating, conciliating, or settling
If you make this election, you may be able to claim an input tax
complaints or disputes involving members;
credit to recover the GST/HST you paid or owe on purchases and
expenses related to these supplies.
• the right to vote at or participate in meetings;
Effect of a revocation of this election
• the right to receive or acquire goods and services for an additional
To revoke a previously made election, complete Section D of
fee equal to their fair market value;
this form.
• the right to receive a discount for goods or services sold by
If you revoke a previously made election to have the exempt
the organization when the total value of all the discounts is
memberships of your public service body treated as taxable
insignificant (less than 30%) in relation to the membership fee.
supplies, the GST/HST will no longer apply to your supplies of these
For example, a $100 membership fee provides members with a
memberships as of the effective date of revocation. Also, you will no
$5 discount for 10 admissions to the theatre. This membership
longer be eligible to claim input tax credits for the GST/HST paid or
would be taxable since the total value of the discounts is
owing on goods and services acquired to make those supplies.
significant (30% or more) in relation to the membership fee
whether or not the discounts are used; or
Duration of this election
• the right to receive periodic newsletters, reports, or other
An election will remain in effect until the date you provide in
publications if:
Section D of this form.
– the value of the newsletters, reports, and publications is
What is a membership?
insignificant (less than 30%) in relation to the membership
A membership is a right granted by person A to person B for
fee; or
services provided by, or for the use of facilities operated by,
– the newsletters, reports, and publications provide information
person A. These services or facilities are not available, or are
on the organization's activities or financial status, except if their
available but not to the same extent or for the same fee or charge,
value is significant in relation to the membership fee and a fee
to persons that are not granted the same rights as members.
is ordinarily charged to non-members.
A membership also includes a right that is conditional on the
purchase or ownership of a share, bond, debenture, or other security.
Memberships in a club are taxable if the main purpose of the club is
to provide dining, recreational, or sporting facilities to its members,
such as a membership in a golf club for public sector bodies
(excluding charities).
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