Since we’ve been talking about it, it will officially happen on January 1, 2021: the total elimination of restricted ITRs for large businesses! As of January 1, 2021, large businesses will have the same treatment as other businesses in terms of claiming the QST paid on all their expenses. Be sure to adjust your accounting system. In summary, expenses subject to ITR restrictions include: Road vehicles weighing less than 3,000 kg that must be registered under the Highway Safety Code to operate on public roads (“restricted vehicles”); Gasoline used to power the engines of restricted vehicles except for diesel; Improvements
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If you qualify as a large business for QST purposes, remember that you can claim 75% of the QST that is paid or has become payable since January 1, 2020 on expenses subject to input tax refund (“ITR”) restrictions. ITR restrictions are gradually eliminated by 25% per year starting in 2018. As a result, a large business can claim a portion of the QST paid on the restricted expenses as follows: 2018 : 25 %; 2019 : 50 %; 2020 : 75 %; 2021 and subsequent years: 100%. In summary, expenses subject to ITR restrictions include: Road vehicles weighing less than
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If your business is a large business for QST purposes, remember that you can claim 50% of the QST paid since January 1, 2019 on expenses subject to input tax refund (“ITR”) restrictions. ITR restrictions are gradually eliminated by 25% per year starting in 2018. As a result, a large business can claim a portion of the QST paid on the restricted expenses as follows: 2018 : 25 %; 2019 : 50 %; 2020 : 75 %; 2021 and subsequent years: 100%. In summary, expenses subject to ITR restrictions include: Road vehicles weighing less than 3,000 kg that must be
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