Non-reimbursable coupons are normally distributed by retailers. These coupons:
- are not given to a third party for redemption;
- entitle the buyer to a specific discount (set amount or percentage) at the time of purchase;
- apply only to taxable (excluding zero-rated) goods or services.
To simplify their accounting, retailers can treat non-reimbursable coupons the same way as reimbursable coupons. If they do this, they must total the value of all items purchased and add the GST and QST payable before deducting the value of the non-reimbursable coupon(s).
Non-reimbursable coupons can also be used to reduce the price of goods and services before the calculation of GST and QST. Retailers who choose this method must deduct the value of the coupon from the selling price before calculating the GST and QST payable by the buyer.
For more information, see the document General Information Concerning the QST and the GST/HST (IN-203-V).