Hi, I'm working on entries into QuckBooks. I have a nonprofit company located in Manitoba, and they are not required to register or collect GST, but are permitted a partial rebate of GST paid. Periodically, the charity submits an application for refunds, listing the total of GST paid towards its operating expenses. 50% of this amount is eligible for rebate. Therefore, I have set up sales taxes in the program the way that it tracks refundable and non-refundable GST tax separately (2.5% each).

One day, the charity purchases t-shirts printed with event logos, for event participants, volunteers and fundraising. The bill totals $2500 plus $125 GST plus $200 PST. In this specific case, is 50% of the GST eligible for rebate? In other words, is this an operating expense for the nonprofit?

Thank you.