Lots of HST questions came up from my clients recently. When you buy capital assets to be used for your business, how much ITCs (HST to be received) you could claim?
For example: You bought a computer for $2,000 plus the GST/HST. You will use the computer 60% in your commercial activities and 40% for personal use. How much HST can you claim back?
Refer to the chart below - Since you will use the computer more than 50% in your commercial activities, you can claim an ITC for the full amount of the GST/HST you paid for the computer.
| % of use in commercial activities |
Corporations |
Partnershis and Individuals |
| <=50% |
None |
None |
| >50% |
100% |
100% |
ITCs for acquisition of capital personal property - Passenger vehicles and aircraft
| % of use in commercial activities |
Corporations |
Partnerships and individuals |
| <=10% |
None |
None |
| >10% and <= 50% |
None |
** CCA |
| >50% and <= 90% |
100% |
** CCA |
| >90% |
100% |
100% |
** CCA x 13/113, if you paid 13% HST in Ontario
CCA x 15/115, if you paid 15% HST in Nova Scotia, New Brunswick, Newfoundland and Labrador, or Price Edward Island