Canada Sales Tax: Claiming input tax credits (ITC)

The ability to recover Goods and Services Tax (GST) in commercial activities is a fundamental aspect of Canada’s value-added tax system. The documentary requirements for claiming input tax credits (ITCs) are outlined in the Input Tax Credit Information Regulations. While it is generally preferred to have documentation issued by the supplier, a recent court case confirmed that purchaser-produced documentation can be acceptable as long as it meets the technical requirements. Taxpayers should be prepared to discuss the case with auditors if they rely on internally produced documentation for ITC claims.

Source: dmainc.com

---

---