Employee GST/HST rebate
New Brunswick, Nova Scotia, Newfoundland and Labrador, Ontario, and Prince Edward Island (PEI) have harmonized their respective provincial sales taxes with the goods and services tax (GST) to create the harmonized sales tax (HST) in each of these provinces. For the rest of this section, the CRA refers to these provinces as the participating provinces.
As an employee, you may have incurred expenses in the course of your employment duties. Some of these expenses you paid may have included GST or HST. If you deducted these expenses from your employment income, you may be able to get a rebate of the GST or HST you paid on these expenses. Complete the GST370, Employee and Partner GST/HST Rebate Application, and claim the rebate on line 45700 of your income tax and benefit return.
How a rebate affects your income tax
When you receive a GST/HST rebate for your expenses, you have to include it in your income for the year you received it. Report the amount on line 10400 of your income tax and benefit return. For example, if in 2019 you received a GST/HST rebate that you claimed for the 2018 tax year, you have to include it on line 10400 of your 2019 return.
If any part of the GST/HST rebate is for a vehicle, aircraft or musical instrument you bought, it will affect your claim for capital cost allowance (CCA) in the year you receive the rebate. If this applies to you, reduce the undepreciated capital cost (UCC) of your vehicle, aircraft or musical instrument by the amount of the rebate at the beginning of the year in which you receive the rebate and do not include that part of the rebate on line 10400 of your income tax and benefit return. For more information, see the Example.
For more information, see How to complete Form GST370.
It is important for you to keep proper records to support your claim for a GST/HST rebate. For more information, see Keeping records.
Do you qualify for the rebate?
As an employee, you may qualify for a GST/HST rebate if all of the following conditions apply:
- you paid GST or HST on certain employment-related expenses and deducted those expenses on your income tax and benefit return
- your employer is a GST/HST registrant
You do not qualify for a GST/HST rebate in either of the following situations:
- your employer is not a GST/HST registrant
- your employer is a listed financial institution as defined in the Excise Tax Act (for example, an entity that was at any time during the year a bank, an investment dealer, a trust company, an insurance company, a credit union, or a corporation whose principal business was lending money)
You should file your Form GST370 with your income tax and benefit return for the year in which you deduct the expenses.
If you do not file your rebate application with your income tax and benefit return, send it along with a letter to your tax centre. Include details such as your social insurance number and the tax year to which the application relates.
If you do not file your rebate application when you file your return, you have up to 4 years from the end of the year to which the expenses relate to file an application. The CRA uses the calendar year in which you incur the expense to determine the 4-year period for employees.
You can only file one GST370, Employee and Partner GST/HST rebate application for each calendar year.
You cannot get a rebate of an amount if any of the following apply:
- the CRA previously refunded, remitted, or credited the tax to you
- you received or are entitled to receive a rebate, refund, or remission under any other section of the Excise Tax Act or any other act of Parliament for the same expense
- you received a credit note, or you issued a debit note, for an adjustment, refund, or credit that includes the amount
- the deadline for filing the rebate has passed
Overpayment of a rebate
If you receive an overpayment of a GST/HST rebate, you have to repay the excess. The CRA charges interest on any balance you owe.
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