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Ministry of Revenue - HST Information
Publication date: 2nd February 2010
Please find below information from the Ministry of Revenue regarding the HST - Information About Temporary Restrictions on Input Tax Credits for Large Businesses.
Harmonized Sales Tax
Information About Temporary Restrictions On Input Tax Credits For Large Businesses
February 1, 2010
The HST, which comes into effect on July 1, is central to Ontario's comprehensive tax plan to attract new business investment and help create 591,000 net new jobs within ten years. When fully implemented, Ontario businesses will benefit from the removal of roughly $4.5 billion a year in provincial sales tax.
As announced in the 2009 Ontario Budget, and consistent with the approach used in Québec, businesses with annual taxable supplies greater than $10 million and certain financial institutions will be temporarily restricted from claiming input tax credits (ITCs) for the provincial portion of the HST they pay on certain inputs: energy, except where used to produce tangible personal property for sale; certain telecommunications services; certain road vehicles and their fuel; and food, beverages and entertainment.
The temporary recapture of ITCs will only be in place for the first eight years that the HST is in effect. The rate of recapture will be 100 per cent for the first five years, and will then be reduced in equal increments over the following three years.
Information set out in Temporary Recapture of Input Tax Credits Requirement provides details to help businesses to comply with the tax changes.
To find out more about tax savings for businesses, visit www.ontario.ca/taxchange.
View:
• Prepare for Ontario's HST: Tax Tip #1 - Restricted Input Tax Credits
• HST Information Notice 5 - Temporary Recapture of Input Tax Credits Requirement
Questions?
Call: Canada Revenue Agency at 1 800 959-8287