Non-reimbursable coupons are normally distributed by retailers and have the following characteristics:

• They are not given to a third party for reimbursement.
• They entitle the customer to a specific discount (set amount or percentage) at the time of purchase.
• They apply only to taxable (excluding zero-rated) goods or services.

As a retailer, you can treat non-reimbursable coupons as reimbursable coupons, thereby simplifying your accounting. For the reporting period in which the coupon was accepted you will be able to claim input tax credits (ITCs) and input tax refunds (ITRs) for the taxes that were deemed to be included in the value of the coupon.

Non-reimbursable coupons can also be used to reduce the price of goods or services before the calculation of GST and QST. If you choose this method, you must deduct the value of the coupon from the sale price before calculating the GST and QST payable by the purchaser. In this case, you cannot claim ITCs and ITRs on the value of the coupons presented by the purchaser.