News and Insights

CRA GST/HST Policy Statement P-184

Tax Development Apr 28, 2010

The Canada Revenue Agency has revised this policy statement to reflect the new factors that may be used by registrants when claiming input tax credits in relation to reimbursements for expenses incurred by employees, partners or volunteers, where credit cards have been used to make purchases.  

Effective July 1, 2010, Ontario and British Columbia will become participating provinces with HST rates of 13% and 12% respectively.  The factors allowed for HST in Ontario will be 12/112 and for HST in British Columbia will be 11/111.  The factors allowed for HST in New Brunswick and Newfoundland and Labrador will remain at the current rate of 12/112.  

In addition, the rate of HST will increase in the province of Nova Scotia from 13% to 15%, effective July 1, 2010.  With this rate increase, the proposed factor allowed for HST in Nova Scotia will be 14/114.  

This policy statement does not address the issue of extracting the provincial component of HST that will be subject to the input tax credit recapture requirement in Ontario and British Columbia on certain types of expenses.  

The appendix includes a chart of GST/HST rates and factors, with their effective dates.  

CRA P-184