Glossary
Input tax credit
An input tax credit lets a GST/HST-registered business recover the sales tax it paid on purchases used to run its commercial activities. At filing time you subtract these credits from the tax you collected on sales and remit only the net amount, which is what stops the same tax from stacking at every stage of supply. Keeping clean records and valid invoices is essential to claim them. Our GST, HST and PST guide explains which purchases qualify and how the credit is claimed.
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