If, at any time, you register for the GST/HST and QST and you were a small supplier immediately before that time, you can claim input tax credits (ITCs) and input tax refunds (ITRs) for property you had on hand, immediately prior to registration, for consumption or use in your commercial activities.

As a rule, these ITCs and ITRs are equal to the basic tax content of the property at the time of registration.

If you register for the GST/HST and QST, you can also claim ITCs and ITRs for any GST/HST and QST paid before your registration on services to be provided after registration, as well as on rent, royalties or similar amounts paid in the course of your commercial activities for a period following your registration.

You can claim these ITCs and ITRs on the first GST/HST or QST return you file after becoming a registrant.