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14 January 2021

Québec eliminates QST ITR restrictions for large businesses

Consistent with the amendments to the Act regarding the Québec sales tax tabled on May 9, 2018, Québec has eliminated the restrictions on obtaining an input tax refund (ITR) applicable to large businesses, effective January 1, 2021. Accordingly, large businesses concerned must once again update their procedures and systems as of January 1, 2021 and increase the rate of the ITRs they claim regarding restricted expenses from 75% to 100%. With respect to taxable benefits provided to employees in 2020, registered employers that are deemed to be large businesses must include, in calculating their net tax to be remitted, 75% of the tax arising from taxable benefits related to expenses subject to the ITR restrictions.

A Tax Alert prepared by Ernst & Young Canada, and attached below, provides additional details.

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ATTACHMENT

Full text of Tax Alert

Document ID: 2021-0090

 

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