How to calculate the amount of the GST/HST you are considered to have collected

The amount of the GST/HST you are considered to have collected on a taxable benefit is based on a percentage of the value of the benefit for GST/HST purposes. The percentage rate you use depends on:

• the province or territory in which the employee ordinarily reported to work;
• if you are a large business on December 31, 2016, for the purpose of the recapture of input tax credits for the provincial part of the HST;
• if the benefit is an automobile operating expense benefit; or
• some other type of benefit.

Automobile operating expense benefits

If the last establishment where your employee ordinarily worked or to which he or she ordinarily reported in the year is located in a participating province (Prince Edward Island, New Brunswick, Newfoundland and Labrador, Nova Scotia, or Ontario), you are considered to have collected an amount equal to a percentage of the value of the benefit for GST/HST purposes, based on one of the following rates:

• 10.25% for Prince Edward Island, or 6.63% if you are a large business for the purposes of the recapture of input tax credits for the provincial part of the HST;
• 11% for Nova Scotia;
• 10% for New Brunswick and Newfoundland and Labrador;
• 9% for Ontario, or 7.2% if you are a large business on December 31, 2016, for the purpose of the recapture of input tax credits for the provincial part of the HST.

If the last establishment where your employee ordinarily worked or to which he or she ordinarily reported in the year is located in a non-participating province or territory (the rest of Canada), you are considered to have collected 3% of the value of the benefit for GST/HST purposes.

Benefits other than automobile operating expenses benefits

If the last establishment where your employee ordinarily worked or to which he or she ordinarily reported in the year is located in a participating province (Prince Edward Island, New Brunswick, Newfoundland and Labrador, Nova Scotia, or Ontario), you are considered to have collected, for 20152016, the GST/HST as a percentage of the value of the benefit as follows:

• 13.25/113.25 for Prince Edward Island;
• 14/114 for Nova Scotia;
• 12/112 for Ontario;
• 13/113 for New Brunswick and Newfoundland and Labrador.

If you are, or were, a large business, and the benefits relate to a motor vehicle that was subject to the recapture of input tax credits (ITC) for the provincial part of the HST paid or payable on that vehicle, for 2016 you are considered to have collected the GST/HST as a percentage of the value of the benefits as follows:

• 4/104, if the recapture rate was 100% on the last day of the reporting period in which you reported the RITC for the provincial part of the HST paid or payable on that motor vehicle;
• 6/106, if the recapture rate was 75% on the last day of the reporting period in which you reported the RITC for the provincial part of the HST paid or payable in Ontario on that motor vehicle; or,
• 8/108, if the recapture rate was 50% on the last day of the reporting period in which you reported the RITC for the provincial part of the HST paid or payable in Ontario on that motor vehicle.

If the last establishment where your employee ordinarily worked or to which he or she ordinarily reported in the year is located in a non participating province or territory, you are considered to have collected 4/104 of the value of the benefit for GST/HST purposes as calculated above.

However, when an employee or an employee’s relative has reimbursed an amount for a taxable benefit other than for a standby charge or the operating expense of an automobile, this reimbursed amount is consideration for a taxable supply. You are considered to have collected an amount equal to 5/105 for GST or one of the following for HST on a reimbursement:

• 13/113 for reimbursements paid before July 1, 2016, for New Brunswick and Newfoundland and Labrador;
• 15/115 for reimbursements paid on or after July 1, 2016, for New Brunswick, Newfoundland and Labrador ;
• 15/115 for Nova Scotia;
• 13/113 for Ontario;
• 14/114 for Prince Edward Island for reimbursements paid before October 1, 2016; and
• 15/115 for reimbursements paid on or after October 1, 2016.

In this situation, you have to include the GST/HST for this reimbursement in your GST/HST return for the reporting period that includes the date of the reimbursement. Additional information on the GST/HST implications on taxable benefits (other than automobile benefits) can be found in GST Memorandum 9.1 Taxable Benefits (Other than Automobile Benefits).

Date modified:

2016-12-08