Revenue Quebec Confirms ITR Restriction Phase Out Beginning January 1, 2018

Revenue Quebec has confirmed its intention to phase out the input tax refund (“ITR”) restrictions for large businesses, starting January 1, 2018.

At that time, large businesses will be able to claim ITRs at a rate of 25% of the QST paid on restricted expenses, which include expenses relating to specified motor vehicles and fuel, telecommunications, meals and entertainment, and energy not used in production. 

The allowable ITRs will increase by 25% each year, so large businesses will be able to claim ITRs at 50% in 2019, 75% in 2020, and 100% as of 2021.

Details on the phase out of the large business ITR restrictions were provided in the Quebec Budget 2015 Additional Information document.