Applying a Tax Refund to the Payment of Tax Owing
You may wish to use a GST refund or rebate (such as a refund for an amount of tax paid in error or a rebate for public service bodies) for a given period to offset the net GST payable for the same period. To do so, you must complete the appropriate application and file it along with your GST return.
Similarly, if your QST return shows net QST payable, and you are claiming a QST refund or rebate (such as a refund for an amount of tax paid in error or a rebate for public service bodies), you may deduct the refund or rebate from the amount owing, and remit or claim the difference, as applicable. Here again you must complete the appropriate application and file it with your return.
If you are using the combined GST–QST return (form FPZ-500-V), you may use a QST refund to offset GST payable, and vice versa. In this case, you would remit the difference to Revenu Québec, or claim it as a refund, as applicable. However, offset with respect to GST and QST is normally not allowed by Revenu Québec if a registrant
- has other debts to the federal or Québec government (even if a tax debt agreement has been reached)
- has failed to file a return for a previous reporting period
You collected $1,200 in GST and $2,400 in QST. You are entitled to an ITC of $1,750 and an ITR of $150.
|Refund of net GST||($550)|
|Net QST payable||$2,250|
|Net QST to be remitted||$2,250|
|Refund of net GST||−||$550|
|Amount of remittance||$1,700|