Online Tax Strategies, November 2017

Phasing Out of Restrictions on the Granting of Input Tax Refunds to Large Businesses as of January 1, 2018

In 2012, further to an agreement with the Government of Canada to harmonize the GST/HST and QST, the Government of Quebec announced that it would eliminate restrictions on the granting of input tax refunds (ITR) for large businesses. In the March 2015 Quebec budget, the Finance Minister announced that the restrictions would be phased out as of January 1, 2018.

On October 25, 2017, Revenue Quebec published QST bulletin TVQ. 206.1.10 to implement the new provisions and clarify the application of the Quebec Sales Tax Act (QSTA) with respect to the phase out of the restrictions starting on January 1, 2018 and ending on January 1, 2021.

Enterprises that are currently large businesses or will become one in the coming months or even in the next four years should be aware that the new measures will impact them and should have a system in place to closely monitor their ITR claims for QST purposes.

Download the document below.