GST/HST rebate for partners

If you are an individual who is a member of a Partnership, you may be able to get a rebate for the GST/HST you paid on certain expenses.

You may qualify for this rebate if:

• the partnership is a GST/HST registrant; and
• you personally paid GST/HST on Expenses that:
  • you did not incur on the account of the partnership; and
  • you deducted from your share of the partnership Income on your income tax return.

However, special rules apply if your partnership paid you an allowance for those expenses.

Examples of expenses subject to the GST/HST are vehicle costs, meals, and entertainment.

The rebate may also apply to the GST/HST you paid on motor vehicles, musical instruments, and aircraft, for which you deducted Capital cost allowance (CCA).

The eligible portion of CCA is the part of the CCA that you deduct on your income tax return in the tax year, that relates specifically to a motor vehicle, musical instrument, or aircraft on which you paid GST/HST and that is eligible for the rebate to the extent that the partnership used the property to make taxable supplies.

If you deduct CCA on more than one property of the same class, you have to separate the portion of the CCA for the property that qualifies for the rebate from the CCA for the other property. If any part of the rebate relates to the CCA deduction for a motor vehicle, a musical instrument, or an aircraft, you have to reduce the Undepreciated capital cost (UCC) of the related property by that part of the rebate.

To claim your GST/HST rebate for partners, complete Form GST370, Employee and Partner GST/HST Rebate Application. If you receive this rebate, you have to include it in your income for the tax year in which you receive it.

Forms and publications

• Guide RC4091, GST/HST Rebate for Partners
• Guide T4002, Business and Professional Income
• Form GST370, Employee and Partner GST/HST Rebate Application
• Form T2125, Statement of Business or Professional Activities

Date modified:

2017-01-31