If you are a small supplier and you decide to register for the GST and the QST, you can claim input tax credits (ITCs) and input tax refunds (ITRs) in respect of 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 and QST, you can also claim ITCs and ITRs for any GST 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 or QST return you file after becoming a registrant.