Reason code 1C – Amounts paid in error

You may qualify to file a general rebate application if you paid or remitted an amount as or on account of GST/HST, net tax, penalty, or interest in error.

On this page:

• Are you eligible for the rebate?
• How do you claim your rebate?
• How do you calculate your rebate?
• Where do you send your rebate application?
• What is the due date to file your rebate application?
• What records do you include with your application and what records do you keep?

Are you eligible for the rebate?

You can apply for a rebate of an amount if one of these situations applies:

• You paid or remitted it as or on account of GST/HST or net tax that you should not have paid or remitted, or that was more than you had to pay or remit.
• You paid it as penalty, interest, or any other similar obligation that was not payable or remittable.

Exceptions

Exceptions - Amount collected in error

If you collected an amount as or on account of GST/HST that you should not have collected, you have to include that amount in the calculation of your net tax. You are not entitled to claim a rebate for amounts you collected as GST/HST in error.

To correct this error, refund or credit the amount to your customer and issue your customer a credit note for the amount. You can then reduce your net tax owing by the amount you refunded or credited to your customer. Include the amount of the adjustment on line 107 of your GST/HST return in the reporting period in which you issued the credit note.

Exceptions - Amount paid in error

If you believe you paid an amount as GST/HST in error to a supplier, you can request a refund or credit of the amount from the supplier, instead of applying for a rebate under reason code 1C. This is often the simplest way for you to recover the amount. If the supplier gives you a refund or credit, you are no longer eligible for a rebate because the amount you paid in error has already been refunded or credited to you. If you cannot get a refund or credit from the supplier (for example, if the supplier refuses to refund the amount or goes out of business), you can apply for a rebate of that amount under reason code 1C.

You are not entitled to a rebate for amounts paid or remitted in error if any of the following apply:

• the amount has been taken into account as tax or net tax in an assessment;
• the amount paid was tax, net tax, penalty, interest, or any other amount assessed; or
• the amount is the result of an appraisal or reappraisal of the value of goods, or a determination that the GST/HST applies to the goods by the Canada Border Services Agency (CBSA).

Exceptions - Rebate of GST/HST paid for goods imported

If you import goods on a consignment, approval, or sale-or-return basis and export them within 60 days without having used or consumed them in Canada, except on a trial basis, you can apply to the CBSA for a rebate of the GST/HST you paid on these goods when you imported them. Similarly, if goods you import to consume or use are of inferior quality, damaged, or defective, you may be entitled to a rebate through the CBSA of the GST/HST you paid when you imported them.

How do you claim your rebate?

To claim your rebate under reason code 1C, use Form GST189, General Application for Rebate of GST/HST.

How do you calculate your rebate?

For a full GST/HST rebate, use Method (b). Enter the rebate amount for each invoice in the “Actual GST/HST paid” column of Part F of the application.

For a partial GST/HST rebate or a rebate of an amount paid as a penalty or interest, use Method (c). Calculate the rebate amount for each invoice or transaction and enter it in the “Other” column of Part F of the application.

For details on how to calculate your total rebate, go to RC4033 -  General Application for GST/HST Rebates, under "Part C – Rebate claimed".

The HST rate can vary from one participating province to another. For the chart on the applicable GST/HST rates, go to GST/HST rates.

Where do you send your rebate application?

If you are filing a paper GST/HST return, send this completed rebate application with your return, to the address shown on your GST/HST return. Otherwise, send this completed rebate application to:

Summerside Tax Centre
275 Pope Road
Summerside PE C1N 6A2

What is the due date to file your rebate application?

You have to file your rebate application within two years after the day that you paid or remitted the amount in error.

You can submit only one rebate application per calendar month.

What records do you include with your application and what records do you keep?

When you apply for a rebate of amounts you paid or remitted in error, include the following information with your application:

• the reason the amount is not payable or remittable;
• details on how you calculated your claim; and
• copies of receipts for all purchases that you list.

We will not return any receipts or supporting documentation submitted with your application. We do not accept credit card slips or debit transaction slips as proof of purchase without a copy of the invoice or cash register receipt.

Forms and publications

• Guide RC4033, General Application for GST/HST Rebates
• Form GST189, General Application for Rebate of GST/HST
• Form GST288, Supplement to Forms GST189 and GST498

Date modified:

2015-07-21