P-216 Registration of a Partner 24 April 1996

Entitlement of corporate partner to register based on partnership’s commercial activity

The Department will permit a partner (other than an individual) to voluntarily register for GST/HST purposes beginning April 24, 1996, notwithstanding the fact that the partner is not engaged in any commercial activity in Canada other than the commercial activity engaged in by it as a member of the partnership.

Reduction for partnership reimbursements

A partner's entitlement to ITCs is subject to the restrictions as set out in subsection 272.1(2). Where a member of a partnership (other than an individual) incurs an expenditure in relation to the activities of the partnership and the partner is reimbursed by the partnership, the partner's claim for ITCs will be reduced to the extent of the ITC portion of the reimbursement and the partnership will be entitled to claim an ITC for the GST included in the reimbursement.

A partnership will not be entitled to claim an ITC in respect of an expense reimbursed to a partner where the partner has already claimed an ITC in respect of the same expense by virtue of paragraph 272.1(2)(b).