GST/HST rebate for employees and partners
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GST/HST rebate for employees and partners
Notice to reader
The information on this page replaces the information in Guide RC4091, GST/HST Rebate for Partners, which has been discontinued.
On this page
Find out about the GST/HST rebate for employees and partners
Find out how the GST/HST rebate affect your income tax
Find out if you are eligible for the rebate
Determine what expenses qualify for the rebate
Information you need to complete Form GST370
How to complete Form GST370
When to file and where to send your rebate application
What to do with an overpayment of the rebate
What information to include with the rebate application and what records to keep
Find out about the GST/HST rebate for employees and partners
The employee and partner GST/HST rebate allows certain employees and partners (who are individuals) to recover the GST/HST they have paid on eligible expenses, such as office supplies, travel, meals, and entertainment.
Employees and partners can apply for the rebate using Form GST370, Employee and Partner GST/HST Rebate Application.
Find out how the GST/HST rebate affect your income tax
When you receive the GST/HST rebate for your expenses, you have to include it in your income for the year you received it. Use the following sections to determine how the GST/HST rebate affects your income tax depending on your situation.
Employee whose employer is a GST/HST registrant
Report the amount on line 104 of your income tax return. For example, if in 2016 you received the GST/HST rebate that you claimed for the 2015 tax year, you have to include it on line 104 of your 2016 income tax return.
If any part of the GST/HST rebate is for a vehicle, musical instrument, or aircraft you bought, it will affect your claim for capital cost allowance (CCA) in the year you receive the rebate. If this applies to you, reduce the undepreciated capital cost (UCC) of your vehicle, musical instrument, or aircraft by the amount of the rebate at the beginning of the year in which you receive the rebate. Do not include that part of the rebate on line 104 of your income tax return.
Partners
Partner of a GST/HST registered partnership
Report the amount of the rebate you receive that relates to eligible expenses, other than capital cost allowance (CCA), on line 9974 of your applicable business statement.
If any part of the GST/HST rebate is for a vehicle, musical instrument, or aircraft you bought, it will affect your claim for CCA in the year you receive the rebate. If this applies to you, reduce the undepreciated capital cost (UCC) of your vehicle, musical instrument, or aircraft by the amount of the rebate at the beginning of the year in which you receive the rebate. Do not include that part of the rebate on line 9974 of your applicable business statement.
Example
In 2015, Myriam, who is a partner in a partnership, received an $85 GST/HST rebate. Of the rebate, $56.28 relates to a CCA deduction for her motor vehicle. At the end of 2015, the UCC for her vehicle was $21,652. Her UCC for the beginning of 2016 will be $21,595.72 ($21,652 - $56.28). The remaining $28.72 ($85 - $56.28) will be reported on line 9974 as self-employed income on her applicable business statement.
Find out if you are eligible for the rebate
Use the following sections to determine if you are eligible for the GST/HST rebate depending on your situation.
Employee whose employer is a GST/HST registrant
As an employee, you may qualify for the GST/HST rebate if:
- you paid the GST/HST on certain employment-related expenses and deducted those expenses on your income tax return; and
- your employer is a GST/HST registrant.
You do not qualify for the GST/HST rebate if your employer:
- is not a GST/HST registrant; or
- is a listed financial institution.
Partners
Partner of a GST/HST registered partnership
As an individual who is a member of a partnership, you may be eligible for the GST/HST 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.
To be eligible for the rebate, you must have paid the GST/HST on the expense or acquisition and the partnership must use it to make taxable supplies.
As a partner, you can only claim a rebate to the extent that the partnership could have otherwise claimed an input tax credit (ITC) if it had incurred the expense directly. This means that if your partnership cannot claim any ITCs because it provides only exempt supplies (for example, doctors providing exempt medical services), you would not be eligible to claim a GST/HST rebate for the expenses you deducted from your share of the partnership income.
The rebate is limited to the amount that would qualify for an ITC if the partnership had incurred the expenses and paid GST/HST in the last reporting period of its last fiscal year that ended in the calendar year for which you are claiming the rebate.
Determine what expenses qualify for the rebate
Use the following sections for common examples of eligible expenses, non-eligible expenses, and the eligible portion of capital cost allowance on motor vehicles, musical instruments, and aircraft for which you may claim the GST/HST rebate.
List of some purchases and expenses for which you may be eligible to claim the rebate
- advertising and promotion
- fuel costs (except for motor vehicles)
- leasing expenses
- legal, accounting, and other professional fees
- lodging
- maintenance and repairs
- meals and entertainment (allowable part only)
- motor vehicle expenses (allowable part only)
- office expenses
- parking
- rent
- supplies
- telephone and utilities
- travel
- work-space-in-the-home expenses
Non-eligible expenses
List of some purchases and expenses for which you cannot claim the rebate
- expenses on which you did not pay the GST/HST, such as:
- most expenses you incurred outside Canada (for example, gasoline, accommodation, meals, and entertainment)
- acquisitions of zero-rated goods and services (goods and services that are subject to the GST/HST, but at a rate of 0%), including basic groceries, prescription drugs, medical devices, most agriculture and fish products, and certain expenses that farmers and fishers incur
- acquisitions of exempt goods and services (goods and services that are not subject to the GST/HST) including most health and dental care services, most educational services, medical underwriting fees, insurance premiums, bonding premiums, mortgage interest, residential rents, interest, and motor vehicle licence and registration fees
- salaries
- expenses you incurred when your employer or your partnership was not a GST/HST registrant
- expenses for which your employer or your partnership paid you an allowance that is not reported in Part C of Form GST370, Employee and Partner GST/HST Rebate Application (for example, an allowance that was not included in your income as a taxable benefit because it was a reasonable allowance)
- any personal-use portion of an eligible expense
- 50% of the GST/HST paid on eligible expenses for food, beverages, and entertainment (for long-haul truck drivers, 20% of the GST/HST paid on these expenses that were incurred during eligible travel periods)
- an eligible expense or part of an eligible expense, for which you received, or are entitled to receive, a reimbursement from your employer or your partnership
- expenses of a partner that relate to the partnership's supplies of exempt goods or services (if you are a member of a partnership that sells exempt goods or services as well as taxable goods or services, subtract the amount of expenses relating to the exempt sales from the total expenses)
- expenses of a partner that relate to the partnership's supplies of exempt goods or services may be calculated on a percentage basis (for example, by estimating the percentage of the expenses that relate to exempt goods or services) or by specifically identifying those expenses that relate to exempt goods or services supplied by the partnership
Capital cost allowance
The eligible portion of capital cost allowance on motor vehicles, musical instruments, and aircraft for which you may claim the rebate
You can claim a rebate of the GST/HST you paid on the acquisition of a motor vehicle, musical instrument, or an aircraft, based on the amount of capital cost allowance (CCA) you deducted on that property for a tax year.
If you are a partner, the GST/HST rebate on the CCA is also limited to the extent the partnership uses that 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.
Example 1
Ian is a partner of a partnership. The partnership is registered for the GST/HST and has a December 31 year-end. Under the partnership agreement, Ian is required to personally pay his motor vehicle expenses. For 2015, Ian did not receive any allowance or reimbursement for these expenses. His expenses were incurred in many provinces across Canada. For 2015, Ian's motor vehicle expenses were as follows:
| Expenses | Amount |
|---|---|
| Licence and registration fees | $260 |
| Fuel (Ontario at 13% HST) | $1,000 |
| Fuel (Prince Edward Island at 14% HST) | $560 |
| Fuel (Manitoba at 5% GST) | $670 |
| Fuel (Nova Scotia at 15% HST) | $1,000 |
| Total Fuel | $3,230 |
| Insurance | $750 |
| Interest expenses | $1,500 |
| Maintenance and repairs (Prince Edward Island at 14% HST) | $467 |
| Maintenance and repairs (Manitoba at 5% GST) | $533 |
| Total Maintenance and repairs | $1,000 |
| Car washes (Nova Scotia at 15% HST) | $84 |
| Capital cost allowance (CCA) (Ontario at 5% GST) | $3,060 |
| Total car expenses | $9,884 |
| Kilometres driven to earn his share of partnership income | 25,000 |
| Personal kilometres driven | 5,000 |
| Total kilometres driven | 30,000 |
Ian is now ready to calculate his GST/HST rebate. To claim the rebate, he has to complete Form GST370.
He completes Part A. Before he can complete Part B, he has to complete Chart 1 and Chart 2 of Form GST370 to calculate his GST/HST eligible expenses. Make sure you review your expenses and your CCA and place them on Chart 1 and Chart 2 under the GST/HST rate that is applicable for the expense or CCA.
He enters in column 2A, 2B, 2C, 2D, and/or 2E of Chart 1 the part of any expenses included in the applicable box of column 1 of Chart 1 that is not eligible for the rebate.
Ian did not enter any amounts in the black areas of the chart, as these expenses were not subject to the GST/HST, and are therefore not eligible for the rebate.
Ian enters the amounts from Chart 1 (columns 3A, 3B, 3C, 3D, and 3E) and Chart 2 (column 3A) to Part B on page 1 of Form GST370.
Ian does not have to complete Part C of Form GST370 as he did not receive an allowance for the use of his motor vehicle. Ian enters $487.75 on line 457 of his 2015 income tax return. He also attaches Form GST370 to his income tax return and keeps a copy for his records.
Ian will include $366.32 (the amounts from the line "Total eligible expenses" on Chart 1) as follows (1,002 X 5/105) + (833 X 13/113) + (855 X 14/114) + (903 X 15/115) on his 2015 income tax return. This amount is the part of the rebate he will receive in 2015 that relates to eligible expenses other than CCA.
He will then reduce his undepreciated capital cost (UCC) for the beginning of 2016 by $121 (the amounts from the line "Capital cost allowance (CCA) on motor vehicles, musical instruments, and aircraft" on Chart 2 as follows (2,550 × 5/105).
Example 2
Patrick is a partner in an Alberta partnership. The partnership is registered for the GST/HST and has a December 31 year-end. Under the partnership agreement, Patrick is required to personally pay his motor vehicle expenses. Patrick paid 5% GST on his expenses.
The following are his 2015 motor vehicle expenses for which he did not receive any allowance or reimbursement:
| Items | Amount |
|---|---|
| Total eligible expenses other than CCA | $3,150.84 |
| CCA | $5,100.00 |
| Total eligible expenses including CCA | $8,250.84 |
Patrick calculates the GST/HST rebate that he is entitled to: $8,250.84 X (5/105) = $392.90
He will file Form GST370 and include $392.90 on line 457 of his 2015 income tax return.
Patrick calculates the GST/HST rebate related to his eligible expenses other than CCA: $3,150.84 X (5/105) = $150.04
When filing his 2016 income tax return, he will include $150.04 on line 9974 in Part 6 of his 2016 Form T2125, Statement of Business or Professional Activities.
Patrick also calculates the amount of the GST/HST rebate that relates to CCA: $5,100 X (5/105) = $242.86
When filing his 2016 income tax return, he will reduce the 2016 beginning UCC of his motor vehicle by $242.86 in column 2 of Area A of his 2016 Form T2125.
Note
Special rules apply if your employer or partnership paid you an allowance in respect of the property. For more information, see Allowance.
You may also be entitled to a rebate if you purchased your motor vehicle, musical instrument, or aircraft outside a participating province and brought the property into a participating province. An additional calculation may be required in this case. For more information, see Situation 5 – Property and services brought into a participating province.
Information you need to complete Form GST370
Before completing Form GST370, you need to calculate the expenses you deducted on your income tax return. Depending on your situation, you calculated these amounts on specific forms which you filed with your income tax return. Once these calculations are completed, you can then use these amounts to complete Form GST370.
| Your situation | Form to be used to calculate the expenses before completing GST370 |
|---|---|
|
An employee (whose employer is a GST/HST registrant) |
Form T777, Statement of Employment Expenses If applicable, Form TL2, Claim for Meals and Lodging Expenses |
|
An individual who is a member of a partnership that is a GST/HST registrant and you have incurred eligible expenses which included the GST/HST |
Most businesses expenses – Form T2125, Statement of Business or Professional Activities Rental expenses – Form T776, Statement of Real Estate Rentals Farming expenses – Form T2042, Statement of Farming Activities Farming expenses for those participating in the AgriStability and Agrilnvest programs – Form T1163, Statement A – AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Individuals Fishing expenses – Form T2121, Statement of Fishing Activities |
How to complete Form GST370
You have to complete Parts A, B, and D of Form GST370. If applicable, an authorized officer of your employer or your partnership has to complete Part C. You can only file one rebate application for each calendar year.
If you are claiming a GST/HST rebate for both employee and partner expenses, use only one application form and combine your expenses.
Part A – Identification
Part B – Rebate calculation
Part C – Declaration by claimant's employer or partnership
Part D – Certification
Part A – Identification
If you are the claimant, enter your name and social insurance number in the boxes provided. The "Tax year of claim" should be the same year as the income tax return for which you are claiming the GST/HST rebate. Also enter the name of the employer or partnership (include the trading or operating name, if applicable) and its business number.
Part B – Rebate calculation
Calculate your rebate based on the expenses you deducted on your income tax return. These expenses include the GST/HST, provincial sales tax, and tips (if the tips are included in your bill and you paid the GST/HST on them).
You can claim a rebate of 5/105 of the eligible expenses on which you paid the GST. The rebate amounts of the eligible expenses on which you paid HST are:
- 12/112 for expenses on which you paid 12% HST
- 13/113 for expenses on which you paid 13% HST
- 14/114 for expenses on which you paid 14% HST
- 15/115 for expenses on which you paid 15% HST
See the following situations to determine how to calculate your rebate. For your rebate calculation, use only the expenses you deducted on your income tax return.
Not all union, professional, or similar dues that you claimed on line 212 of your income tax return are subject to the GST/HST. Your receipt for these dues should show whether the GST/HST was charged. If these dues are the only expense you deducted, do not complete the charts of the form.
| Your situation | This means |
|---|---|
| If you paid the GST | Enter on lines 1 and 3 of Part B the amount of the expense including the GST minus any amount you were reimbursed. Multiply the amount on line 3 by 5/105 and enter the result on line 4. |
| If you paid HST | Enter in column 3B, 3C, 3D, and/or 3E of lines 5 and 7 of Part B the amount of the expense including the HST minus any amount you were directly reimbursed. Add the amounts from columns 3B, 3C, 3D, and 3E of line 7, and enter the total on line 8. Multiply the amounts from columns 3B, 3C, 3D, and 3E of line 7 by the corresponding HST rate and enter the results on lines 9, 10, 11, and 12 respectively. Finally, add the amounts from lines 9, 10, 11, and 12, and enter the result on line 13. |
Add lines 4 and 13, and enter the result on line 16. The amount on line 16 is your total rebate claim. Enter this amount on line 457 of your tax return. Do not forget to sign and date your application in Part D.
Before completing Part B, complete Chart 1 and Chart 2 (if applicable) on page 2 and 3 of the form to determine your total expenses that are eligible for the GST rebate.
Enter in column 1A of Chart 1 the expenses you deducted on your income tax return. You calculated these amounts on the following forms and other documents that you filed with your income tax return:
- Employees:
- Partners:
- Form T2125, Statement of Business or Professional Activities
- Form T776, Statement of Real Estate Rentals
- Form T2042, Statement of Farming Activities
- Form T1163, Statement A – AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Individuals
- Form T2121, Statement of Fishing Activities
Also, if applicable, enter in column 1A of Chart 1 the union, professional, or similar dues you claimed on line 212 of your income tax return and on which you paid the GST, minus any amount you were reimbursed. Your receipt for these dues should show whether the GST was charged.
Do not enter any amount in the black areas of Chart 1, since these expenses are not eligible for the rebate.
Enter in column 2A of Chart 1 the amount of any expenses included in column 1A that is not eligible for the rebate. For each expense, subtract the amount in column 2A from the amount in column 1A. Enter the result in column 3A. Total the expenses in column 3A, and enter the result in the "Total eligible expenses" box of column 3A.
If you deducted CCA for a motor vehicle, musical instrument, or aircraft on which you paid the GST, enter the total amount of this CCA in column 1A of Chart 2. If you claimed CCA for a motor vehicle, musical instrument, or aircraft, subtract any non-eligible CCA in column 2A from your total CCA in column 1A. Enter the result in column 3A.
Copy the "Total eligible expenses" amount from column 3A of Chart 1 and column 3A of Chart 2 to lines 1 and 2 respectively of Part B on the front of the form. Add line 1 and line 2 in Part B, and enter the result on line 3. Multiply line 3 by 5/105, and enter the result on line 4.
If situation 5 does not apply to you, copy the amount from line 4 to line 16. This is your total rebate claim. Enter this amount on line 457 of your income tax return. Do not forget to sign and date your application in Part D.
Before completing Part B, complete Chart 1 and Chart 2 (if applicable) on page 2 and 3 of the form to determine your total expenses that are eligible for the HST rebate.
Enter in column 1B, 1C, 1D, and/or 1E of Chart 1 (depending on the HST rate(s) applicable to you) the expenses you deducted on your income tax return. You calculated these amounts on the following forms or other documents that you file with your income tax return:
- Employees:
- Partners:
- Form T2125, Statement of Business or Professional Activities
- Form T776, Statement of Real Estate Rentals
- Form T2042, Statement of Farming Activities
- Form T1163, Statement A – AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Individuals
- Form T2121, Statement of Fishing Activities
Also, if applicable, enter in column 1B, 1C, 1D, and/or 1E of Chart 1 the union, professional, or similar dues on which you paid the HST and that you claimed on line 212 of your income tax return, minus any amount you were reimbursed. Your receipt for these dues should show whether the HST was charged.
Do not enter any amount in the black areas of Chart 1, since these expenses are not eligible for the rebate.
Enter in column 2B, 2C, 2D, and/or 2E of Chart 1 the part of any expenses included in the applicable box of column 1 of Chart 1 that is not eligible for the rebate. For each expense, subtract the amount in column 2 from the corresponding amount in column 1. Enter the results in column 3B, 3C, 3D, and/or 3E of Chart 1 as applicable. Total the expenses in column 3B, 3C, 3D, and/or 3E, and enter the result(s) in the appropriate "Total eligible expenses" box(es) of column 3 of Chart 1.
If you deducted CCA for a motor vehicle, musical instrument, or aircraft on which you paid the HST, enter the total amount of this CCA in column 1B, 1C, 1D, and/or 1E of Chart 2. If you claimed CCA for a motor vehicle, musical instrument, or aircraft, subtract any non-eligible CCA in column 2B, 2C, 2D, and/or 2E as applicable from your total CCA in the corresponding row of column 1. Enter the result in column 3B, 3C, 3D, and/or 3E of Chart 2 as applicable.
Copy the "Total eligible expenses" amount from column 3B, 3C, 3D, and/or 3E of Chart 1 to column 3B, 3C, 3D, and/or 3E of line 5 (depending on the HST rates applicable to your situation) of Part B on page 1 of the form. Enter the amounts from column 3B, 3C, 3D, and/or 3E of Chart 2 to column 3B, 3C, 3D, and/or 3E of line 6 (depending on the HST rates that apply to your situation) of Part B on page 1 of the form. Add columns 3B, 3C, 3D, and 3E of line 5 and line 6 of Part B, and enter the results on the corresponding columns of line 7. Add the totals from the applicable columns on line 7, and enter the result on line 8.
Multiply column 3B of line 7 by 12/112, and enter the result on line 9. Multiply column 3C of line 7 by 13/113, and enter the result on line 10. Multiply column 3D of line 7 by 14/114, and enter the result on line 11. Multiply column 3E of line 7 by 15/115, and enter the result on line 12. Total lines 9, 10, 11, and 12, and enter the result on line 13.
If situation 5 does not apply to you, copy the amount from line 13 to line 16. This is your total rebate claim. Enter this amount on line 457 of your income tax return. Do not forget to sign and date your application in Part D.
Before completing Part B, complete Chart 1 and Chart 2 (if applicable) of the form to determine the total expenses that are eligible for the GST/HST rebate. You calculated these amounts on the following forms or other documents that you file with your income tax return:
- Employees:
- Partners:
- Form T2125, Statement of Business or Professional Activities
- Form T776, Statement of Real Estate Rentals
- Form T2042, Statement of Farming Activities
- Form T1163, Statement A – AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Individuals
- Form T2121, Statement of Fishing Activities
Separate the expenses on which you paid the GST from those expenses on which you paid the HST. Enter the expenses on which only the GST applies in column 1A of Chart 1, and the expenses on which the HST applies in column 1B, 1C, 1D, and/or 1E (depending on the HST rate(s) applicable to you) of Chart 1.
Also, if applicable, enter in column 1A, 1B, 1C, 1D, and/or 1E of Chart 1 the union, professional, or similar dues on which you paid the GST/HST and that you claimed on line 212 of your income tax return, minus any amount you were reimbursed. Your receipt for these dues should show whether the GST/HST was charged.
Do not enter any amount in the black areas, since these expenses are not eligible for the rebate.
Enter in column 2A, 2B, 2C, 2D, and/or 2E of Chart 1 the part of any expenses included in the applicable box of column 1 that is not eligible for the rebate. For each expense, subtract the amount in column 2 from the corresponding amount in column 1 and enter the result in column 3A, 3B, 3C, 3D, and/or 3E. Enter the total of each column 3A, 3B, 3C, 3D, or 3E in the appropriate "Total eligible expenses" box(es) of column 3 of Chart 1.
If you deducted CCA for a motor vehicle, musical instrument, or aircraft on which you paid the GST/HST, enter the total amount of the CCA in column 1A, 1B, 1C, 1D, and/or 1E of Chart 2. If you claimed CCA for a motor vehicle, musical instrument, or aircraft, subtract any non-eligible CCA in column 2A, 2B, 2C, 2D, and/or 2E as applicable from your total CCA in the corresponding row of column 1. Enter the result in column 3A, 3B, 3C, 3D, and/or 3E of Chart 2 as applicable.
Copy the "Total eligible expense" amount from column 3A of Chart 1 and column 3A of Chart 2 to lines 1 and 2 respectively of Part B on page 1 of the form. Add line 1 and line 2 in Part B, and enter the result on line 3. Multiply line 3 by 5/105, and enter the result on line 4.
Copy the “Total eligible expenses” amount from column 3B, 3C, 3D, and/or 3E of Chart 1 to column 3B, 3C, 3D, and/or 3E of line 5 (depending on the HST rates applicable to your situation) of Part B on page 1 of the form. Copy the amount from column 3B, 3C, 3D, and /or 3E of Chart 2 to column 3B, 3C, 3D, and/or 3E of line 6 (depending on the HST rates applicable to your situation) of Part B on page 1 of the form. Add columns 3B, 3C, 3D, and 3E of line 5 and line 6 of Part B and enter the result on the corresponding columns of line 7. Add the totals from the applicable columns on line 7 and enter the result on line 8.
Multiply column 3B of line 7 by 12/112, and enter the result on line 9. Multiply column 3C of line 7 by 13/113, and enter the result on line 10. Multiply column 3D of line 7 by 14/114, and enter the result on line 11. Multiply column 3E of line 7 by 15/115, and enter the result on line 12. Total lines 9, 10, 11, and 12 and enter the result on line 13.
If situation 5 does not apply to you, add lines 4 and 13, and enter the result on line 16. This is your total rebate claim. Enter this amount on line 457 of your income tax return. Do not forget to sign and date your application in Part D.
You may be eligible to claim a rebate of 1/101, 2/102, 3/103, 7/107, 8/108, 9/109, or 10/110 for eligible expenses deducted on your income tax return for which you paid the provincial part of HST separately. This excludes any expenses for which you paid the HST.
You may have paid all or part of the applicable provincial part of HST separately in situations where one of the following applies:
- You purchased goods in a non-participating province and brought them into a participating province.
- You purchased goods in a participating province and brought them into another participating province for which the rate of HST is higher.
- You imported commercial goods from outside Canada into a participating province.
- You had goods delivered or made available to you in a participating province, or sent by mail or courier to you at an address in a participating province from a non-registered non-resident of Canada.
If you were not a GST/HST registrant, and one of the situations above applies, you had to pay the provincial part of the HST by filing Form GST489, Return for Self-Assessment of the Provincial Part of Harmonized Sales Tax (HST).
In the case of a motor vehicle, you may have paid the provincial part of the HST separately in situations where:
- you paid the GST when you purchased the vehicle from a registrant in a non-participating province and brought the vehicle into a participating province;
- you purchased the vehicle in a participating province and brought the vehicle into another participating province for which the rate of HST is higher; or
- you purchased your vehicle from someone who was outside Canada and we collected the GST at the border.
The provincial part of the HST was payable when you registered your vehicle at a provincial motor vehicle registry office in a participating province. For more information, see GST/HST and specified motor vehicles.
Note
The provincial motor vehicle tax is imposed and administered by provincial governments and is separate from the GST/HST. Provincial governments determine the rate of this tax. Since it is not a federal tax, it is not eligible for any GST/HST rebate.
Before completing Part B, complete Chart 3 on page 3 of the form to determine the total expenses eligible for the GST and HST rebate. Enter, in column A, B, C, D, E, F, and/or G of line 1 of Chart 3 (depending on the HST rates applicable to your situation), the total amounts of the expenses you deducted on your income tax return (excluding CCA and the non-eligible portion of the expenses, if applicable).
If you deducted CCA on your income tax return for a motor vehicle, a musical instrument, or an aircraft (on which you paid the provincial part of HST separately), enter the amounts of the CCA, minus the portion that is not eligible for the rebate, directly in column A, B, C, D, E, F, and/or G of line 2 of Chart 3 (depending on the HST rates applicable to your situation).
Add lines 1 and 2 and enter the result in column A, B, C, D, E, F, and/or G of line 3.
Add the amounts from columns A, B, C, D, E, F, and G of line 3 and enter the total on line 4. Copy the amount from line 4 to line 14 in Part B on page 1 of the form. Multiply the amount from line 3 of column A by 1/101, the amount from column B by 2/102, the amount from column C by 3/103, the amount from column D by 7/107, the amount from column E by 8/108, the amount from column F by 9/109, and the amount from column G by 10/110, and enter the results on lines 5, 6, 7, 8, 9, 10, and 11 respectively. Finally, add the amounts from lines 5, 6, 7, 8, 9, 10, and 11 and enter the result on line 12. Copy the amount from line 12 to line 15 in Part B on page 1 of the form.
Add any amounts you have on lines 4, 13, and 15 and enter the result on line 16. This is your total rebate claim.
Enter this amount on line 457 of your income tax return. Do not forget to sign and date your application in Part D.
If the only expenses you claimed on line 229 of your income tax return were for the cost of tools bought as a tradesperson and/or an apprentice mechanic (see Chapter 7), and neither Situation 4 nor Situation 5 applies to you, do not complete the charts on pages 2 and 3 of Form GST370.
If you paid the GST, enter on lines 1 and 3 of Part B the amount of the expense you claimed on line 229 of your tax return. Multiply the amount on line 3 by 5/105, and enter the result on line 4.
If you paid the HST, enter in column 3B, 3C, 3D and/or 3E of lines 5 and 7 of Part B the amount of the expense minus any amount you were directly reimbursed. Add the amounts from columns 3B, 3C, 3D, and 3E of line 7, and enter the total on line 8. Multiply the amounts from columns 3B, 3C, 3D, and 3E of line 7 by the corresponding HST rate, and enter the results on lines 9, 10, 11, and 12 respectively. Finally, add the amounts from lines 9, 10, 11, and 12, and enter the result on line 13.
Add lines 4 and 13, and enter the result on line 16. The amount on line 16 is your total rebate claim. Enter this amount on line 457 of your income tax return. Do not forget to sign and date your application in Part D.
Part C – Declaration by claimant's employer or partnership
You may be eligible to claim the GST/HST rebate for expenses for which you received an unreasonable allowance. If so, an authorized officer of your employer or partnership has to complete Part C. An authorized officer includes an immediate supervisor, controller, or office manager.
Examples
Example 1 - Reasonable allowance
Luc is a member of a partnership that is a GST/HST registrant. Luc incurred eligible automobile leasing expenses of $5,500. The partnership paid him a reasonable motor vehicle allowance of $3,100 for the use of his automobile.
Since Luc received a reasonable allowance for his automobile, he cannot claim the GST/HST rebate for the leasing cost. In addition, he cannot claim the rebate for any other automobile expenses he incurred, including gasoline and repairs.
Example 2 - Unreasonable allowance
The employer pays to Dany a monthly motor vehicle allowance based on a flat-rate that is not related to the number of kilometres driven. It is a taxable benefit and has to be included in the employee's income.
The employer will report this monthly flat-rate allowance in box 14, "Employment income" and in the "Other information" area under code 40 at the bottom of Dany's T4 slip. Dany will include this amount in his income and he would be eligible to claim the GST/HST rebate on those eligible employment expenses. He would also be required to complete Part C and have the signature of his employer or authorized officer.
Examples
Luc is a member of a partnership that is a GST/HST registrant. Luc incurred eligible automobile leasing expenses of $5,500. The partnership paid him a reasonable motor vehicle allowance of $3,100 for the use of his automobile.
Since Luc received a reasonable allowance for his automobile, he cannot claim the GST/HST rebate for the leasing cost. In addition, he cannot claim the rebate for any other automobile expenses he incurred, including gasoline and repairs.
Example 2 - Unreasonable allowance
The employer pays to Dany a monthly motor vehicle allowance based on a flat-rate that is not related to the number of kilometres driven. It is a taxable benefit and has to be included in the employee's income.
The employer will report this monthly flat-rate allowance in box 14, "Employment income" and in the "Other information" area under code 40 at the bottom of Dany's T4 slip. Dany will include this amount in his income and he would be eligible to claim the GST/HST rebate on those eligible employment expenses. He would also be required to complete Part C and have the signature of his employer or authorized officer.
| Situation | Reason | |
|---|---|---|
| You received a reasonable allowance |
You cannot claim the GST/HST rebate. |
It is not a taxable benefit and is not included in your income for income tax purposes. You are not considered to have paid the GST/HST. |
| You received an unreasonable allowance | You may be eligible to claim the GST/HST rebate. | It is a taxable benefit and generally included in your income for income tax purposes. You are considered to have paid the GST/HST. |
This rule also applies when your employer or partnership pays you an allowance relating to motor vehicles, musical instruments, or aircraft. You cannot claim the rebate based on the CCA you deducted for these properties if the employer or partnership pays you a reasonable allowance.
For more information, see GST/HST Memorandum 9.3 – Allowances.
Part D – Certification
Sign the certification area. If you don't, it may delay or invalidate your GST/HST rebate claim.
When to file and where to send your rebate application
After completing Form GST370, attach a copy to your income tax return and enter the amount of your claim on line 457 of your income tax return. Keep a copy of the completed form for your records.
You should file your rebate application with your income tax return for the year in which you deduct the corresponding expenses for income tax purposes.
If you do not file your rebate application with your income tax return, send it to your tax centre.
Also, if you do not file your rebate application when you file your tax return, you have up to four years from the end of the year to which the expenses relate to file an application. We use the calendar year in which you incur the expense to determine the four-year period. For example, if you incur an eligible expense and deduct it from your share of the partnership income in the 2015 tax year, you have until December 31, 2019, to file the GST/HST rebate application relating to that expense.
Note
If you are filing a rebate application for employment expenses that relate to a tax year prior to 2015, you should refer to Chapter 10 of the version of Guide T4044, Employment Expenses, that relates to that year for instructions on how to complete Form GST370.
Find out what are the rebate restrictions
You can only file one Form GST370, Employee and Partner GST/HST Rebate Application, for each calendar year. You cannot receive a rebate of an amount if one of the following applies:
- the amount was previously rebated, credited, refunded, or remitted to you.
- you received or are entitled to receive a rebate (other than this type of rebate), refund, or remission of the amount.
- you received a credit note or you issued a debit note for an adjustment, refund, or credit that includes the amount.
- the deadline for filing the rebate has passed.
What to do with an overpayment of the rebate
If you receive an overpayment of the GST/HST rebate, you have to repay the excess. You can find payment methods by going to Remit (pay) the GST/HST (including instalment payments). Interest will be charged on an overdue amount equal to the basic rate plus 4%. The basic rate is based on the average rate of return on 90 day Treasury Bills, adjusted quarterly, and rounded up to the nearest whole percentage. To get the current interest rate, see Prescribed interest rates.
What information to include with the rebate application and what records to keep
You have to keep adequate books and records to support your claim for the GST/HST rebate. Generally, these are the same records you need to support your deductions for income tax purposes. They include receipts, invoices, credit card statements, cancelled cheques, and written agreements. The records to support your claim should contain the information we need to determine the GST/HST you paid on each purchase you made (for example, they should provide the amount of the GST/HST you paid, or indicate the amount you paid including the GST/HST).
You do not have to send us these records with your GST/HST rebate application. However, you have to keep them for six years after the end of the year to which they relate, in case we ask to see them.
- Date modified:
- 2019-04-15