Time limits for claiming ITCs

Most registrants claim their input tax credits (ITCs) when they file their GST/HST return for the reporting period in which they made their purchases. You may have ITCs that you did not claim when you filed the return for the corresponding reporting period. In general, we allow you to claim any unclaimed ITCs in your returns that meet the following condition:

• Your ITCs must be claimed in a GST/HST return filed by the due date of the return for the last reporting period that ends within four years after the end of the reporting period in which the ITC could have first been claimed.

Example
You are a quarterly filer and you buy office furniture in the reporting period October 1, 2005, to December 31, 2005, for which you can claim an ITC. The due date of the return is January 31, 2006. You can claim your ITCs in any future return filed before January 31, 2010.

The time limit for claiming ITCs for a reporting period is reduced from four to two years for:

• listed financial institutions (other than a corporation that is deemed to be a financial institution because it has made an election to have certain supplies deemed to be financial services and that election is in effect); and
• persons with annual taxable supplies of goods and services of more than $6 million for each of the two preceding fiscal years.

However, the two-year limit does not apply to the following persons even if they fall into the second category listed above (these persons have four years to claim their ITCs):

• charities; and
• persons whose supplies of goods and services (other than financial services) during either of the two preceding fiscal years are at least 90% taxable supplies.

Under the two-year limit, you can claim your ITCs in any subsequent return that is filed within two years of the end of the fiscal year that includes the return in which the ITC could have first been claimed.

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

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