The Canada Revenue Agency (CRA) has published updated web content to provide new information for shoppers and businesses on the goods and services tax/harmonized sales tax (GST/HST) break on certain items across Canada.
Whether you’re shopping as an individual or making a business-to-business purchase,?you should automatically receive this tax break on qualifying items at checkout.
What happens if I am accidentally charged GST/HST on qualifying items?
If you’re charged tax on a qualifying item by mistake by a supplier or retailer, don’t worry—simply ask the supplier or retailer for a refund of the GST/HST. In most cases, businesses should assist shoppers right away to correct the error.
If you’re unable to get a refund or credit from the supplier or retailer, you can apply for a GST/HST rebate for the amount of GST/HST charged to you in error. Please note that rebates are only issued for total amounts of $2.00 or more.
You can apply electronically using Form GST189 General Application for GST/HST Rebates and select Reason Code 1C – Amounts paid in error. This process applies across the entire supply chain, from manufacturer to wholesaler, wholesaler to retailer, and retailer to consumer.
Be sure to submit your rebate application to the CRA within two years after the day you paid or remitted the amount in error. Please note that you can send only one application per calendar month.
More details on the rebate process are available at GST/HST break – Canada.ca. Check this page regularly as we will update it as new information emerges.
Businesses can find technical information and answers to frequently asked questions on the CRA’s new webpage: Questions and Answers about the GST/HST tax break for all Canadians
Information on how to apply for a GST/HST rebate using a paper form will be made available soon.
