What is the difference between an input tax credit and a rebate?

If you are registered for the GST, you can claim an input tax credit (ITC) to recover all the GST you pay on purchases related to any taxable goods and services you provide. The ITC is a refund of the full amount of the GST. If you are not registered, you cannot claim input tax credits.

However, you may be eligible to claim a rebate on some of your purchases if you are a charity, a qualifying non-profit organization, or have municipality status. The rebate is a percentage of the GST paid, depending on the status of the housing provider. You do not have to be registered in order to claim a rebate.

Refer to chapter two of the GST Guide for Social Housing Providers for more information on rebates and input tax credits.