27 February 2019 Quebec’s further phasing out of ITR restrictions discussed Consistent with the amendments to the Act Respecting the Québec Sales Tax (the AQST) tabled on May 9, 2018, the restrictions on obtaining an input tax refund (ITR) applicable to large businesses have been gradually phased out since January 1, 2018. Accordingly, large businesses concerned must once again update their procedures as of January 1, 2019 and increase the rate of the ITRs they claim regarding restricted expenses from 25% to 50%. As a result, with respect to taxable benefits provided to employees in 2018, registered employers that are deemed to be large businesses are required to include in the calculation of their net tax to be remitted 25% of the tax arising from taxable benefits related to expenses subject to the restrictions applicable to ITRs. Document ID: 2019-0438 |
