Since HST has been implemented on July 1, there have still been some instances when departments have applied the GST rebate to purchases instead of the new HST rebate. The old GST rebate on purchases was 67% and the new HST rebate on purchases is 73.77%. The net difference between the two rebates is 6.77%.
For purchases that were being charged 13% HST and only claiming 67% rebate, Queen’s was effectively paying 6.77% extra on these purchases. To get this rebate back, financial services has done a journal entry to reclaim the 6.77% on all transactions that were charged 13% HST, but that only claimed the 67% GST rebate.
On your statement of operations this will show as a negative expense, which is beneficial to your department.
The line description on your expense account will be: 6.77% HST rebate recovery
Please ensure that going forward; all purchases made by Queen’s are claiming the HST rebate which is 73.77%.
Queen's Financial Services