Many large companies with monthly goods and services tax / harmonized sales tax (GST/HST) reporting periods will start recapturing the input tax credit with the new Ontario 75% recapture rate in their July 2015 GST/HST returns, generally due by 31 August 2015.
As a reminder, these businesses will still have to report 100% gross recaptured input tax credit amounts on Schedule B when they file their electronic GST/HST returns, and the Canada Revenue Agency’s systems will calculate the net recapture input tax credits. As a result, many businesses will need to recalculate their Ontario recapture amounts if their systems apply the 75% recapture rate to the expense at the time of data entry.
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