Business -> Automobiles, Passenger Vehicles and Motor Vehicles -> GST/HST input tax credits on motor vehicle allowances
When an employer pays reasonable motor vehicle allowances to an employee for the reimbursement of the employee's motor vehicle expenses while on the job (see Tax free motor vehicle allowances), an input tax credit can be claimed.
The GST rate was reduced from 7% to 5% effective January 1, 2008, which changed the rates to be used for input tax credits on motor vehicle allowances.
The input tax credit amount for 2008 and later years is:
The input tax credit amount for July 1, 2006 to December 31, 2007 was:
The input tax credit amount prior to July 2006 was:
Canada Revenue Agency Resources:
- RC4022 General Information for GST/HST Registrants - see Input Tax Credits
Revised: January 31, 2021
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