GST/HST partner rebate

As an individual who is a partner in a partnership, you may qualify for the GST/HST partner rebate if:

• the partnership is a GST/HST registered partnership; and
• you personally paid GST/HST on expenses that:
  • you did not incur on the account of the partnership; and
  • you deducted from your share of the partnership income on your income tax return and the partnership did not repay you.

As a partner, you can only claim a rebate to the extent that the partnership could have claimed an input tax credit (ITC) if it had incurred the expense directly and paid GST/HST in the last reporting period of its fiscal year that ended in the calendar year for which you are claiming the rebate.

If a partnership provides only exempt goods and services, such as providing exempt medical services, it cannot claim any ITCs. This means, you would not be eligible to claim a GST/HST partner rebate for the expenses you deducted from your share of the partnership income.

Examples of expenses subject to GST/HST are vehicle costs, meals, and entertainment. You can also get a GST/HST rebate for capital cost allowance (CCA) you claim on certain types of property (e.g., if you claim CCA for a vehicle you bought to earn partnership income, and you paid GST/HST when you bought the vehicle).

Use the chart “Other amounts deductible from your share of net partnership income (loss)” on Line 9943 of Form T2124 or Line 9943 of Form T2032 to claim expenses for which the partnership did not reimburse you and any other deductible amounts.

Forms and publications

• Business and Professional Income guide (T4002)
• GST/HST Rebate for Partners guide (RC4091)
• Form GST370, Employee and Partner GST/HST Rebate Application
• Form T2032, Statement of Professional Activities
• Form T2124, Statement of Business Activities