The GST/HST rates to use depend on:

• Location (the last establishment of the registrant at which the employee ordinarily worked, or which the employee generally reported in the tax year; or, where the shareholder resides at the end of the tax year)
• If the benefit is an automobile operating expense benefit or some other type of benefit
• If you are a large business on December 31, 2022, for the purpose of the recapture of input tax credits for the provincial part of the HST

Large businesses located in Ontario or Prince Edward Island (PEI)

If you are considered a large business, the GST/HST calculations may be different. If you cannot claim an input tax credit for the GST/HST you may not have to remit the GST/HST on that benefit.

When the location is in Ontario or PEI, the percentage may be different if the registrant is a large business. In general, a person is considered a large business if the person is a registrant and:

• Person has a threshold amount for the recapture of input tax credits (RITCs) of more than $10 million in their last fiscal year that ended before the recapture period.
• Person is one of the following financial institutions, or a person that is related to one of the following financial institutions: a bank; a credit union; a corporation that is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as a trustee; an insurer or any other person whose principal business is providing insurance under insurance policies; a segregated fund of an insurer, an investment plan, or the person is the Canada Deposit Insurance Corporation.

Learn more: GST/HST Technical Information Bulletin B-104, Harmonized Sales Tax – Temporary Recapture of Input Tax Credits in Ontario and British Columbia

If you are, or were, a large business, and the benefits relate to a motor vehicle that was subject to the RITC for the provincial part of the HST paid or payable on that vehicle you are considered to have collected, for 2022, the GST/HST as a percentage of the value of the benefits as follows:

• 4/104, if the recapture rate was 100% on the last day of the last reporting period in which you reported the RITC for the provincial part of the HST paid or payable on that motor vehicle
• 6/106, if the recapture rate was 75% on the last day of the last reporting period in which you reported the RITC for the provincial part of the HST paid or payable in Ontario on that motor vehicle
• 6.5/106.5, if the recapture rate was 75% on the last day of the last reporting period in which you reported the RITC for the provincial part of the HST paid or payable in Prince Edward Island on that motor vehicle
• 8/108, if the recapture rate was 50% on the last day of the last reporting period in which you reported the RITC for the provincial part of the HST paid or payable in Ontario on that motor vehicle
• 9/109, if the recapture rate was 50% on the last day of the last reporting period in which you reported the RITC for the provincial part of the HST paid or payable in Prince Edward Island on that motor vehicle
• 10/110, if the recapture rate was 25% on the last day of the last reporting period in which you reported the RITC for the provincial part of the HST paid or payable in Ontario on that motor vehicle
• 11.5/111.5, if the recapture rate was 25% on the last day of the last reporting period in which you reported the RITC for the provincial part of the HST paid or payable in Prince Edward Island on that motor vehicle
• 12/112, if the recapture rate was 0% on the last day of the last reporting period in which you reported the RITC for the provincial part of the HST paid or payable in Ontario on that motor vehicle
• 14/114, if the recapture rate was 0% on the last day of the last reporting period in which you reported the RITC for the provincial part of the HST paid or payable in Prince Edward Island on that motor vehicle