Passenger vehicles and aircraft

If you are a corporation, see Passenger vehicles and aircraft (corporation).

However, individuals and partnerships usually claim input tax credit (ITC) for passenger vehicles and aircraft based on the capital cost allowance (CCA) claimed for income tax purposes. If the use in commercial activities is 10% or less, you cannot claim any ITC. If the use in commercial activities is 90% or more, you can claim a full ITC.

You usually calculate your CCA for income tax purposes at the end of your fiscal year. Once you have calculated your CCA, calculate your ITC by using one of the following formulas:

For tax years ending on or after July 1, 2010

• CCA x 5/105, if you paid GST on the purchase.
  
  
• The applicable formula if you paid HST on the purchase:
  • CCA × 12/112 in British Columbia (BC);
  • CCA × 15/115 in Nova Scotia; or
  • CCA × 13/113 in the remaining participating provinces.
  
  
  
• If you paid the provincial part of the HST after bringing the vehicle or aircraft into a participating province from another participating province with a lower HST rate:
  • CCA × 3/103 into Nova Scotia from BC;
  • CCA × 2/102 into Nova Scotia from a participating province other than BC; or
  • CCA × 1/101 into a participating province other than Nova Scotia.
  
  
  
• If you paid the provincial part of the HST after bringing the vehicle or aircraft into a participating province from a non-participating province or importing it into Canada:
  • CCA x 7/107 in BC;
  • CCA × 10/110 in Nova Scotia; or
  • CCA × 8/108 in the remaining participating provinces.

For other tax years, see Formulas for previous tax years for the applicable rates.

Forms and publications

• Guide RC4022, General Information for GST/HST Registrants
• GST/HST Memoranda Series Chapter 8-1, General Eligibility Rules
• GST/HST Memoranda Series Chapter 8-2, General Restrictions and Limitations