Simulation of recapture of input tax credits in Ontario and Prince-Edward-Island and restricted input tax refund in Quebec

For a simulation of the computation of the recapture of input tax credits in Ontario and in Prince-Edward-Island, and the restricted input tax refund in Quebec, see the page Tax Calculator for Travel Expenses.

  • Select Large in the dropdown Business size
  • Select either Meal allowance or Gas for cards in the dropdown Expense type
  • Select Ontario, Prince-Edward-Island or Quebec for the Jurisdiction
  • Insert any amount

The calculator will display:

  • The GST, HST and QST paid
  • The total paid
  • The ITC and ITR
  • The RITC (recapture of ITC)
  • The net expense

Large Businesses and the Temporary Recapture of Input Tax Credits in PEI

The 8 of November, 2012, the Department of Finance, Energy and Municipal Affairs of Prince Edward Island published the guide RTG: 186 Temporary Recapture of Certain Provincial Input Tax Credits, that outlines the rules regarding the temporary recapture of input tax credits that will generally apply to all large businesses that have taxable sales of more than $ 10 million dollars annually, starting April 1st, 2013.

Large Businesses & Temporary Recapture of Input Tax Credits in ON & BC

The major CRA document released on this topic is B-104, dated June 2010, and is called Harmonized Sales Tax – Temporary Recapture of Input tax Credits in Ontario and British Columbia. Under the HST, the phasing out of recaptured of input tax credits starts in Ontario on July 1, 2015. The recapture rate will go down from 100% to 75%. This lowering will have a positive financial impact for large businesses incurring specified properties and services in Ontario such as vehicles, fuel, energy, meals and entertainments and telecommunication. Instead of remitting the entirety of the provincial value added tax (8%), the remittance rate will be 75% of 8%. The 75% recapture rate is applicable to the period of July 1, 2015 to June 30, 2016. The RITC requirement will gradually phased out in Ontario to zero on July 1, 2018. A comparison analysis of the gradual elimination of the RITC is provided on our blog. The GSH/HST info sheet GI-171 provides additional information.

Large Businesses & Restrictions on Obtaining Input Tax Refund in Quebec

The rules applicable for Ontario, British Columbia and Prince Edward Island HST & the temporary recapture of input tax credits are based upon the restrictions on obtaining input tax refunds under the Quebec Sales Tax Act.

Phasing out of the restricted ITR

Will also be done over a 3 year period and will start on January 1st, 2018. See our blog for more details.