On October 25, 2017, Revenu Quebec issued an Interpretation and Administrative Bulletin, TVQ.206.1- 10, Particulars regarding the phasing out of the ITR restrictions applicable to large businesses that are to begin on January 1, 2018 (Bulletin). The document describes how the rules will apply concerning the ITR restrictions for large businesses that will gradually be phased out, beginning January 1, 2018. The Bulletin is subject to the National Assembly passing a bill to implement the measures.
Current rules concerning restrictions of ITRs for large businesses
Large businesses1 cannot claim an ITR for Quebec Sales Tax (QST) paid in respect of the following goods and services acquired in the course of their commercial activities:
• road vehicles of less than 3,0000 kg that must be registered under the Highway Safety Code to travel on public highways;
• fuel (other than diesel fuel) used d to power the engine of such a road vehicle;
• any property or service (improvement) relating to such a road vehicle that is acquired or brought into Quebec within 12 months after the vehicle was acquired or brought into Quebec.
• electricity, gas, combustibles or steam used for a purpose other than to produce movable property intended for sale;
• telephone service and other telecommunication services, except for 1-8000 services and Internet services; and
• food, beverages or entertainment whose deductibility is limited under the Taxation Act (Quebec).
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