Input Tax Credit Rebate

by David
(Spencerville, ON, Canada)

ITC Refund or GST/HST Rebate?

ITC Refund or GST/HST Rebate?

Is the Input Tax Credit Rebate (HST/GST Rebate) considered taxable farm income?

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David, I'm not up on farming except to know you do it on a cash basis, not an accrual basis ... and you have to be up on GST/HST exemptions.

I wasn't aware that farms had a GST rebate. If you are referring to a GST/HST refund, then no, I believe it is not income.

The general rule, as I understand it, is that all rebates, grants or government assistance is reported under "other income" if it cannot be applied to a specific expense. See input tax credit limitation.

As farmers often have special rules, I don't know if this general rule would apply to your situation. It would be best to speak with your accountant on this.

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