Tax Bulletin

December 2013

Elimination of the Simplified Method for QST Refunds for Expenses Incurred by Employees of a Large Business

For QST purposes, a large business (LB) is defined as a business whose total annual taxable supplies, combined with the total annual taxable supplies of its associates, exceed $10 million.

Starting January 1, 2014, large businesses will no longer be able to use the simplified method to calculate input tax refunds (“ITRs”) for the purpose of recovering part of the QST paid.

This method will be replaced by the simplified method already being used by small and medium-sized businesses. However, large businesses will be required to take ITR restrictions into account. This new method will be known as the “QST factor method”.