Who can apply

GST/HST break

If your rebate application is for GST/HST paid on qualifying items that were purchased during the tax break period of December 14, 2024 to February 15, 2025, go to Form GST189: Rebate under reason code 1C – GST/HST break.

Eligibility

You can apply for a rebate of an amount if:

  • You paid or remitted it as or on account of GST/HST or net tax that you should not have paid or remitted, or that was more than you had to pay or remit

  • You paid it as penalty, interest or any other similar obligation that was not payable or remittable

The HST rate can vary from one participating province to another. For the list of all applicable GST/HST rates, go to GST/HST calculator (and rates)

  • Exceptions – Amount paid in error

    If you believe you paid an amount as GST/HST in error to a supplier, you can request a refund or credit of the amount from the supplier, instead of applying for a rebate under reason code 1C. This is often the simplest way for you to recover the amount. If the supplier gives you a refund or credit, you are no longer eligible for a rebate because the amount you paid in error has already been refunded or credited to you. If you cannot get a refund or credit from the supplier (for example, if the supplier refuses to refund the amount or goes out of business), you can apply for a rebate of that amount under reason code 1C.

    You are not entitled to a rebate for amounts paid or remitted in error if:

    • The amount has been taken into account as tax or net tax in an assessment
    • The amount paid was tax, net tax, penalty, interest or any other amount assessed
    • The amount is the result of an appraisal or reappraisal of the value of goods, or a determination that the GST/HST applies to the goods by the Canada Border Services Agency (CBSA)
    • You are entitled to obtain a rebate, refund or remission of the amount through another program or means
  • Exceptions – Amount collected in error

    If you collected an amount as or on account of GST/HST that you should not have collected, include that amount in the calculation of your net tax. You are not entitled to claim a rebate for amounts you collected in error as GST/HST. To correct this error, refund or credit the amount to your customer and issue your customer a credit note for the amount. You can then reduce your net tax owing by the amount you refunded or credited to your customer. Include the amount of the adjustment on line 107 of your GST/HST return in the reporting period in which you issued the credit note.

  • Exceptions – Customs duties and GST/HST paid in error on imported commercial goods

    If you are not a GST/HST registrant

    If you overpaid duties and the GST or the federal part of the HST on imported commercial goods, and you are not a GST/HST registrant, you can recover the overpayment by requesting an adjustment to your CBSA Commercial Accounting Declaration (CAD).

    CBSA will refund the duty part of the claim and the CRA will send you a rebate for the GST or the federal part of the HST.

    If only the GST or the federal part of the HST was overpaid at the time of importation because the goods were not subject to customs duty, request an adjustment to your CBSA CAD. Once the CBSA approves your request, you can recover the overpayment by filing Form GST189. However, if the problem relates to a redetermination of tariff classification or reappraisal of the value for duty of the goods, CBSA will ask the CRA to pay you the rebate of the GST or the federal part of the HST you are entitled to after they have reviewed and approved your request.

    If you are a GST/HST registrant

    If you are a GST/HST registrant, request an adjustment to your CBSA Commercial Accounting Declaration (CAD) for an overpayment of customs duties, GST or the federal part of the HST on imported goods. Once the CBSA approves your request, you may file Form GST189 to recover the GST or the federal part of the HST on imported goods. If the rebate claim involves a customs issue such as a redetermination of tariff classification or reappraisal of value for duty, do not file Form GST189 until CBSA approves your adjustement request. Then use the CBSA decision to support your claim for the rebate of the GST or the federal part of the HST.

    If you have claimed an input tax credit to recover the amount you paid in error as the GST or the federal part of the HST on imported goods, you cannot claim a rebate for the same amount.

    For information on imports and the CBSA CAD, go to Canada Border Services Agency.

    Special rebate and refund procedures for imported goods

    You may be able to claim a rebate of all or part of the GST or the federal part of the HST paid on imported goods when:

    • The goods have been damaged or destroyed

    • The goods are of an inferior quality, defective or not what was ordered

    • The goods have been imported on consignment, approval or a sale-of-return basis, and have been exported within 60 days for the purpose of returning them to the supplier

    If you paid an amount as customs duties and GST/HST in error in respect of imported non‑commercial goods, use:

    CBSA Form B2G, CBSA Informal Adjustment Request

Claim conditions

You cannot claim a rebate of GST/HST paid if any of the following statements are true:

In the case of bankruptcy, you will not be paid a rebate that you were entitled to claim before the appointment of a trustee in bankruptcy unless you have filed all returns and remitted all outstanding amounts for the reporting periods that ended before the appointment.

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