This extension applies where dealers have not claimed input tax credits (ITCs) for GST/HST paid on related business inputs. Where such ITCs have been claimed, dealers will be required to collect and remit GST/HST on services related to mutual fund trailing commissions from the day the supplies are made. These rules are confirmed in a recently updated GST/HST Notice and are intended to help the industry adapt to the CRA’s updated position (new position) to consider these services as GST/HST taxable services (instead of exempt financial services). The updated Notice confirms the extended enforcement date and provides details on dealers’ GST/HST collection obligations during the transition period prior to January 1, 2028.
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