A VAT refund guide to Canada

How to get VAT Refunds from Canada for your business
Businesses registered in countries outside of Canada can claim VAT refunds on any costs incurred in Canada.
The below information details the requirements needed to be eligible for a VAT refund. This includes claimable expense types, Canada VAT rates, deadlines and claiming periods.
Canada

Which countries have reciprocity with Canada?

All countries can claim but registration is needed

Learn more about how reciprocity works within VAT by clicking below.

What expenses are claimable in Canada?

Entertainment

Entertainment
5%-15%
Accommodation
5%-15%

Events

Admission to Fairs & Exhibitions
5%-15%
Training Courses & Seminars
5%-15%

Travel Related

Hiring of Means of Transport
5%-15%
Public Transport
5%-15%
Taxis
5%-15%

General Expenses

Goods
5%-15%
Inter-company charges
5%-15%
Office Expenses
5%-15%
Marketing Costs
5%-15%
Professional Fees & AP invoices
5%-15%

Additional Information

Current VAT Rate 5%
Categories Entertainment, Events, Travel Related, General expenses
VAT in local language Taxe sur les produits et services (TPS) for GST, Taxe de vente harmonisée (TVH) for HST and Taxe de vente provinciale (TVP) for PST
VAT number format 123456789RT0001 or 123456789
Exemptions None
Filing Schedule

Monthly and quarterly returns are due one month following the end of the return period

Annual returns are due 3 months following the end of the return period

Key Deadlines No deadline prescribed by tax office
Threshold

Non-Simplified: CAD 500 or more

Simplified: CAD 100 to 499.99

Super simplified: Less than CAD 100

Electronic Invoicing Currently, electronic invoicing is voluntary

Frequently Asked Questions

What types of business expenses qualify for a GST refund in Canada?

Eligible expenses for a Canada GST refund typically include accommodation, meals, local transport, trade show participation, and conference fees. Businesses can check their eligibility based on the Canada GST tax rate and specific industry regulations.

How long does it take to receive a GST refund in Canada?

The refund processing time varies, but businesses applying for a GST tax return in Canada can expect it to take anywhere from a few months to a year, depending on the accuracy of the claim and government processing times.

Do I need original receipts and invoices to reclaim GST in Canada?

Yes, most jurisdictions require original invoices with clearly stated tax amounts and business details. Some may accept digital copies. Ensuring compliance with the Canada GST tax rate and invoice requirements is essential for a successful refund claim.

Can I reclaim GST in Canada on business travel expenses like flights and taxis?

Flights are usually not GST-taxable, but local transport costs such as car rentals, train tickets, and taxis may be reclaimable depending on the Canada GST tax rate and provincial regulations.

Does GST reclaim apply to trade shows and conferences in Canada?

Yes, many businesses can claim a Canada GST refund on event registration fees, exhibition costs, and booth rentals. The applicable GST tax rate in Canada will determine the amount eligible for reclaim.

Can I reclaim GST on meals and entertainment expenses in Canada?

GST on meals is often only partially reclaimable, while entertainment expenses are generally non-reclaimable under GST tax Canada regulations.

Is there a deadline for submitting a GST refund application in Canada?

Deadlines vary, but claims for a Canada GST refund typically need to be submitted within 6 months to 1 year of the expense date, depending on business classification and tax jurisdiction.

What happens if GST was charged incorrectly on an expense in Canada?

If GST is applied incorrectly, you may need to request a corrected invoice from the supplier rather than submitting a reclaim. Checking the Canada GST tax rate ensures that your invoices are compliant.

Are there any minimum spend thresholds for GST refunds in Canada?

Yes, some businesses must meet a minimum GST amount before processing a claim. The threshold varies by jurisdiction, so companies should verify the Canada GST tax rate and requirements before applying for a refund.

Who is eligible for a GST refund in Canada?

Businesses and individuals who have paid GST on eligible expenses may qualify for a Canada GST refund. Foreign businesses attending trade shows or conferences can often reclaim GST. The eligibility criteria depend on the Canada GST tax rate and specific tax regulations.

How do I apply for a Canada GST refund as a business?

To claim a Canada GST refund, businesses must submit a GST/HST rebate application with supporting invoices and proof of payment. The process follows the guidelines set by the Canada Revenue Agency (CRA). Ensuring accurate calculations for a GST tax return is essential to meet compliance requirements.

How does GST tax work in Canada for foreign businesses?

Foreign businesses may need to register for GST tax Canada if they sell taxable goods or services in the country. They may also be eligible to reclaim GST on specific business expenses. The Canada GST tax rate varies by province, affecting refund eligibility and tax obligations.

Are there any exemptions or special rules for GST tax in Canada?

Yes, certain goods and services are exempt or zero-rated under GST tax Canada laws, including basic groceries, medical services, and exports. Businesses should check their eligibility for a GST tax return and determine if they qualify for special tax rules based on the Canada GST tax rate.

Need help with your VAT refund from Canada?

You don’t have to do this alone. We’ve been helping companies reclaim foreign VAT refunds for over 20 years. We have the knowledge and technology to process your refunds quicker as well as attend to any unforeseen VAT authority queries that may arise.

Download the latest VAT Rates Country Guide

Start your journey by exploring what you can claim.
Download the latest and full international VAT guide and never miss a deadline.