Often Missed: The GST/HST Rebate

personal resources, such as their vehicle, home office, supplies, or professional memberships. What many do not realize is that if these expenses include GST or HST, and their employer is a GST/HST registrant, they may be entitled to recover part of the tax through the GST/HST Rebate for Employees. This rebate is claimed using Form GST370 and reported on line 45700 of the T1 tax return.  Here’s a primer for you to cover with your clients:

The Backdrop.  Employees cannot claim the CRA GST/HST rebate (Form GST370) on employment expenses if their employer is not a GST/HST registrant, the employer is a listed financial institution, or if they received a non-taxable (reasonable) allowance for the expenses. The expense must be deductible for income tax purposes, and no rebate is allowed if the expense was already reimbursed, refunded, or if the filing deadline has passed.

Who Is Eligible for the GST/HST Rebate? To qualify for the employee GST/HST rebate, all the following conditions must be met:

• You are an employee or a member of a partnership.
• You paid GST/HST on expenses your employer required you to pay.
  These expenses must be deductible on your tax return under line 22900 (employment expenses) or line 21200 (union/professional dues).
• Your employer is a GST/HST registrant.
  If the employer is not registered, no rebate is available.
• Your employer did not reimburse you for the full amount of GST/HST paid.
  If they reimbursed the tax portion, you cannot claim it again.
• You have a signed Form T2200 confirming the conditions of employment that require you to incur these expenses.

If these conditions are met, you may be able to recover the GST/HST paid on eligible expenses.

What Expenses Qualify? Eligible expenses must be deductible employment expenses. Common examples include:

• Vehicle expenses (fuel, maintenance, insurance, leasing)
• Travel expenses (meals, lodging, transportation)

• the GST/HST paid on eligible expenses for food, beverages, and entertainment; 80% for long haul trucker and 50% for all other eligible employees.
• Home office expenses that have a GST/HST component, e.g. Hydro, Gas, etc.
• Supplies used directly in employment duties
• Cell phone and internet costs required for work
• Annual professional dues, if required for employment.  It is important to note that union dues are often GST/HST‑exempt, so they typically do not generate a rebate.
• Employees who claim Capital Cost Allowance (CCA) on a vehicle, aircraft, or musical instrument may also claim a rebate on the GST/HST included in the cost of those assets.

How the Rebate Is Calculated. To claim the GST/HST rebate on employment expenses (e.g., cell phone, supplies, or vehicle fuel), you must have deducted these expenses on line 22900 of your return and have a signed T2200 form. Complete Form GST370 to calculate the GST/HST rebate and report it on line 45700. 

The calculation is based on the employment expenses you claimed on the T777 form and the GST/HST rate of your province. For expenses which you have paid a GST amount, claim a rebate of 5/105 (Alberta, British Columbia, Manitoba, Northwest Territories, Nunavut, Quebec, Saskatchewan, and Yukon). For expenses where you have paid an HST amount claim a rebate of:

• 13/113 (Ontario)
• 14/114 (Prince Edward Island)
• 15/115 (New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island)

Example for an employee in Ontario

1. Scenario: You are an Ontario employee who paid $1,130 for work-related supplies ($1,000 + $130 HST) in 2025.
2. Deduction: You deduct the full $1,130 as an employment expense on Form T777 and Line 22900.
3. Calculate Rebate (Form GST370): You claim a rebate of the 13% HST paid.

Formula:  Eligible Expenses x (13 /113)

             Calculation:   $1130 x (13/113) = $130

4. Claim: Enter $130 on Line 45700 of your T1 Income Tax Return.
5. Important Note: The $130 rebate must be reported as income on your 2026 tax return (next year)

Why This Rebate Matters.  Rebates may seem small, but can add up, especially for employees with multiple expenses. Many do not realize they can recover the HST/GST on work-related costs, missing out on potential savings. By understanding the rules and submitting Form GST370, employees can claim eligible tax relief. And, they can go back and recover the rebate from prior year misses too.

Tax specialists can make a big difference during the affordability crisis – the GST/HST rebate is one important way to do so.