CPA PEP Prep Q&A

HST on Event Meal, eligible 13% ITC or 6.5% ITC

 
Picture of Suzie L
HST on Event Meal, eligible 13% ITC or 6.5% ITC
by Suzie L Send a message - 4 Mar 2019, 11:02 PM
 

Hi Everyone,

I understand that there are exception for 50% deductible limit for meal and entertainment, i.e. when meals are paid for Christmas party, it's 100% deductible.

But how about the HST Input Tax Credit?

Is it deductible at 13% rate, or subject to 50% rate and only 6.5% eligible for ITC?


Thank you,

Suzie

 
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Picture of Vivian Wu
Re: HST on Event Meal, eligible 13% ITC or 6.5% ITC
by Vivian Wu Send a message - 4 Mar 2019, 11:39 PM
 

I believe it is subject to the 50% rate.

 
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Picture of Prashant Borda
Re: HST on Event Meal, eligible 13% ITC or 6.5% ITC
by Prashant Borda Send a message - 4 Mar 2019, 11:56 PM
 

For CFE purpose,  only consider GST @ 5%,   each province has different rates and  it will NOT  be tested.

 
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Picture of Esther Zhang
Re: HST on Event Meal, eligible 13% ITC or 6.5% ITC
by Esther Zhang Send a message - 30 Mar 2019, 11:09 PM
 

HST ITC is 13%, it’s the HST paid regardless what the expenses are for.

 
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Picture of Irfan Parihar
Re: HST on Event Meal, eligible 13% ITC or 6.5% ITC
by Irfan Parihar Send a message - 21 May 2019, 10:29 AM
 

ITCs on meals: always 50% of the HST or GST rate used. Hope this helps.

 
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