A corporation that makes in excess of $10,000,000 in revenues annually are considered by the Canada Revenue Agency to be a large corporation for GST/HST purposes. Large corporations are restricted from claiming input tax credits on the provincial portion of the HST in Ontario on telecommunications, electricity, most types of fuel, meals and entertainment and motor vehicles and related parts. ( Note that meals and entertainment and motor vehicles may be further restricted for GST purposes). For those of you who are required to restrict the provincial portion of the HST paid or payable in Ontario on these types of expenses, the rate of restriction dropped to 25% on July 1, 2017. Previously, the rate of restriction was 50%.
At this point, the CRA is expected to eliminate the requirement to restrict the provincial portion of the HST on July 1, 2018.
