Business Startup Expenses and HST
by Hans Verbeek
Open for Business
HST input credit for a start up business in B.C.
I am in the process of setting up a new business. I am incurring expenses, but do not have any HST payables because there is no revenue stream yet. I am on quarterly reporting. It may take up to two or three reporting periods before a revenue stream will generate HST payables.
Can I claim my input credits during this period? Some of the input credits may be substantial as I pay for leasehold and capital expenses?
You may want to consider registering voluntarily for GST/HST so you can claim your HST input tax credits on your start up costs
As you can only recover ITCs from the time you register, make sure you read the tip on capital assets