EMPLOYEE AND PARTNER GST/HST REBATE
1. Overview
The Employee and Partner GST/HST Rebate provides employees and partners with an opportunity to claim a rebate for GST/HST paid on eligible employment-related expenses. To apply for this rebate, individuals must use Form GST370, which calculates the rebate amount and ensures proper documentation for CRA compliance.
2. Eligibility
To qualify for the rebate, the following conditions must be met:
- Employees must have deducted employment expenses on their T1 return under Line 21200 (Annual Union, Professional, and Membership Dues) or Line 22900 (Other Employment Expenses).
- Partners must report income on Lines 13500 to 14300 and either work in a GST/HST-registered partnership or incur eligible expenses.
3. Eligible Expenses
The rebate applies to GST/HST paid on specific types of expenses, including:
- Motor vehicle expenses directly related to employment duties.
- Capital cost allowance (CCA) for vehicles or musical instruments used for work purposes.
- Meals and entertainment expenses, subject to the 50% limitation rule.
4. Application and Reporting
To apply for the rebate:
- Complete Form GST370, the Employee and Partner GST/HST Rebate Application.
- Include the rebate received as income on Line 10400 of your T1 return in the year the rebate is received.
- Ensure all receipts and documentation supporting the expenses are retained for CRA review.
5. Non-Eligible Expenses
Some expenses do not qualify for the rebate, including:
- Groceries, residential rents, and other personal living expenses.
- Medical expenses, vehicle licensing fees, and non-taxable items.
- Expenses incurred outside Canada.
6. Practical Examples
- Example 1: An employee incurs $1,500 in vehicle maintenance costs while traveling to client sites. The GST/HST paid on these expenses can be claimed using Form GST370.
- Example 2: A partner in a GST/HST-registered partnership purchases a musical instrument for $2,000 used exclusively for work. The GST/HST paid on the purchase qualifies for the rebate.
7. Additional Resources
8. Conclusion
By completing Form GST370 and meeting all CRA requirements, employees and partners can optimize their tax rebates, reducing the financial burden of work-related expenses. Ensure proper documentation and timely filing to benefit fully from this rebate program.
