160  /

Certain large businesses are not entitled to claim input tax refunds (ITRs) for QST paid on 

specified goods and services and may also be required to recapture some input tax credits 

(ITCs) claimed for the provincial component of the HST paid in respect of the same types of 

specified goods and services. A QST and GST/HST registrant is generally considered to be a 

large business for a given fiscal year if the value of the taxable sales made in Canada by the 

registrant and the registrant’s associates exceed $10 million during the immediately preceding 

fiscal year. Various financial institutions are also considered large business regardless of the 

value of their taxable sales.

The rules for the recapture input tax credits (RITCs) are similar to the restrictions for ITRs for 

QST purposes. However, one significant difference is that a business subject to these rules 

cannot simply forego claiming the ITCs subject to the RITCs. The business must claim the 

ITCs and recapture the ITCs in the appropriate reporting period. Large businesses are generally 

required to show the RITCs separately when filing their returns.

Specified Goods and Services Subject to ITR Restrictions and RITCs

Specified Goods

 and Services

Qué.

1

Ont.

2

P.E.I.

3

N.S.

N.B.

Nfld.

Qualifying motor 

vehicles under 3,000kg, 

fuel (other than diesel 

fuel) and some property 

or services relating to 

such vehicles 

ITR

restrictions

RITCs

RITCs

N/A

N/A

N/A

Electricity, gas, 

combustibles and steam

ITR

restrictions

RITCs

RITCs

N/A

N/A

N/A

Telephone and other 

telecommunication 

services (excluding 

services related to 

1-800, 1-888 or 1-877 

telephone services and 

Internet access)

ITR

restrictions

RITCs

RITCs

N/A

N/A

N/A

Meals and 

entertainment

ITR

restrictions

RITCs

RITCs

N/A

N/A

N/A

Restrictions on QST Input Tax Refunds and HST Recapture Input Tax 

Credit Requirements for Large Businesses and Financial Institutions

Notes

(1) The 

Québec ITR restrictions will continue to December 31, 2017. The restricted ITR 

restrictions will then be phased out from January 1, 2018 to December 31, 2021.

(2) The Ontario RITC requirements will continue to June 30, 2015. The RITC requirements will 

then be phased out from July 1, 2015 to July 31, 2018.

(3) The P.E.I. RITC requirements will continue to March 31, 2018. The RITC requirements will 

then be phased out from April 1, 2018 to March 2021.

© 2013 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms

affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Current as of May 3, 2013