Share with your friends

Canada: Reminder for employers, indirect tax on employee benefits

Canada: Reminder for employers, indirect tax

Employers need to consider GST/HST and QST* regarding their employees' 2019 taxable benefits.


Related content

Many employers that offer taxable benefits to their employees must remit amounts of GST/HST and QST related to these benefits by 31 March 2020.

These amounts of indirect tax are due each year, and are an actual cost to employers because they are not collected from the employees.

When determining the proper amounts to remit, employers need to note that some of their 2019 calculations may be different from the prior year's calculations due to the phase-out period of the recaptured input tax credits for HST purposes in certain provinces and the phase-out of input tax refund restrictions for QST purposes in Quebec.

*GST/HST and QST = goods and services tax / harmonized sales tax and Quebec sales tax

Read a January 2020 report prepared by the KPMG member firm in Canada

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal