Revenu Québec Interpretation Bulletins re: Input Tax Refunds and Expense Reimbursements and Allowances

Revenu Québec has released updated versions of three interpretation bulletins to reflect the increase in the rate of QST to 8.5% that took effect January 1, 2011, and the additional increase of QST to 9.5%, that will take effect January 1, 2012.  These bulletins discuss the application of the Minister’s administrative policy regarding the simplified calculation methods that may be used by employers to determine input tax refunds in respect of employee expense reimbursements and allowances.

Large businesses may use a specified percentage applied to the amount of the expenses being reimbursed or allowances paid to employees, members or volunteers.  This method, which was formerly referred to as the “4.1% method”, has been renamed the “LB simplified method”.  For expenses incurred after December 31, 2010 and before January 1, 2012, the specified percentage will be 4.5%, increasing to 5% for expenses incurred after December 31, 2011.   

These bulletins replace the previous versions that were released on June 30, 2009:  

TVQ 211-3/R3, “Input tax refunds in respect of expense allowances”
TVQ 211-5/R1, “Simplified calculation method for input tax refunds in respect of expense allowances”
TVQ 212-1/R4, “Simplified calculation methods for input tax refunds in respect of expense reimbursements”