A financial institution other than a qualifying financial institution may, under certain conditions, elect to use the following percentages to determine its input tax credits (ITCs) and input tax refunds (ITRs):

• 12% for banks
• 10% for insurers
• 15% for securities dealers

The election must be made using form FP-2118-V, Election or Revocation of an Election for a Financial Institution to Use the Prescribed Percentage. If no election is made, the financial institution must determine its ITCs and ITRs using an allocation method recognized by Revenu Québec and the Canada Revenue Agency. The method must be fair and reasonable, and must be the only method used throughout the fiscal year.