A GST/HST input tax credit (ITC) lets a registered business recover the GST/HST it paid or owes on property and services acquired for use in its commercial activities. The credit is claimed on the GST/HST return and offsets the tax collected on the business's taxable supplies, so that the tax is ultimately borne by the final consumer rather than by registrants in the supply chain.
Eligibility depends on the inputs being used in commercial activities, on the registrant claiming within the applicable time limit, and on holding documentation that meets the Input Tax Credit Information Regulations. For supplies above set dollar thresholds, the documentation must include the supplier's name and registration number, the date, the amount, and a description of what was supplied. Missing or incomplete documentation, and claims relating to exempt supplies or personal use, are common reasons ITCs are denied on audit.