Detailed Calculation of GST/HST and Return Concerning a Taxable Real Property, Taxable Carbon Emission Units or Taxable Imported Supplies

About this content

This content is a plain-language restatement of the official Revenu Québec publication: FPZ-34.G(2019-10).pdf, produced to help citizens and entrepreneurs better understand their tax obligations. It does not constitute legal or tax advice. Refer to the official document for any decision.

Who this document is for

This document is intended for any person registered for GST/HST who must file the GST/HST Return, namely form FPZ-34. It applies in particular to registrants who must:

• calculate goods and services tax (GST) or harmonized sales tax (HST);
• determine their input tax credits (ITCs);
• report tax adjustments for a reporting period;
• report instalment payments already made;
• report tax related to the acquisition of:
• a taxable real property;
• taxable carbon emission units;
• taxable imported supplies.

Context and purpose

The document explains how to use form FPZ-34.CD, entitled Detailed Calculation of GST/HST and Return Concerning a Taxable Real Property, Taxable Carbon Emission Units or Taxable Imported Supplies. This form accompanies the GST/HST return and is used to detail the calculations needed to establish the net tax for a reporting period. It also makes it possible to report certain taxes that should not be included in the regular GST/HST calculation, but rather be reported separately, including those related to certain real properties, emission units or imported supplies. The explanations given in the document are administrative and informational in nature. They do not replace the text of the Excise Tax Act, a Canadian federal act, or its regulations. When a registrant has collected HST or made an adjustment related to HST, that amount must be combined with the corresponding GST amount and entered in the appropriate box of the form. As a general rule, a registrant may claim ITCs for GST or HST paid or payable on eligible purchases and expenses.

Complete and detailed information

General structure of form FPZ-34.CD

Form FPZ-34.CD is used for two broad categories of information:

1. Part 1 – Detailed Calculation of GST/HST

• calculation of GST/HST;
• calculation of ITCs;
• reporting of tax adjustments, where applicable;
• reporting of instalment payments made.

2. Part 2 – Return Concerning a Taxable Real Property, Taxable Carbon Emission Units or Taxable Imported Supplies

• reporting of tax on the acquisition of a taxable real property;
• reporting of tax on the acquisition of taxable emission units;
• reporting of tax on certain taxable imported supplies.

Treatment of HST

If a registrant has collected HST or made an adjustment to an HST amount, that amount must be added to the corresponding GST amount. The GST/HST total thus obtained must be entered in the relevant box of the form. ITCs may generally be claimed for GST or HST paid or payable on eligible purchases and expenses.

Part 1 – Detailed Calculation of GST/HST

Part 1 is used to establish in detail the amounts related to GST/HST and ITCs for a reporting period. It also makes it possible to take into account applicable adjustments and instalments already paid.

Line 101 – Total supplies

On line 101, enter the total supplies of goods and services made during the period. The amount to enter must be determined:

• without including GST/HST;
• without including QST;
• based generally on the revenue recorded in the accounting books or records.

Special rule for the quick method of accounting

When a registrant uses the quick method of accounting, the amount entered on line 101 must include GST/HST.

Line 103 – Tax collectible

On line 103, enter the total GST/HST collectible for the reporting period. This total includes GST/HST:

• collected;
• receivable;
• deemed collected for the period in question. You must also include GST/HST calculated on the self-supply of a residential complex.

Amounts not to include on line 103

Line 103 must not include GST/HST payable in respect of:

• the acquisition of a taxable real property;
• the acquisition of taxable emission units;
• taxable imported supplies.

These amounts must be reported in Part 2, on lines 114 and 115.

Line 104 – Adjustments to add to tax collectible

On line 104, enter the total of the amounts that must be added to GST/HST collectible in order to calculate the net tax for the period. The examples mentioned are:

• GST/HST recovered following the collection of a bad debt that had been written off;
• the difference between:
• a full ITC already claimed for meal and entertainment expenses;
• and the percentage allowed for this type of expense, namely 50 %.

Line 106 – Input tax credits

On line 106, enter the total ITCs:

• that relate to the reporting period in question;
• that were not claimed in a previous period;
• that concern eligible purchases or expenses used to make:
• taxable supplies;
• zero-rated supplies. It is permitted to enter on this line the GST/HST giving entitlement to an ITC in respect of the acquisition of:
• a taxable real property;
• taxable emission units. In this case, the amount corresponds to the amount reported on line 114.

Exclusion of deemed ITCs

The total entered on line 106 must not include deemed ITCs for acquired used property. The only exception mentioned concerns deposits on beverage containers.

General time limit for claiming an ITC

As a general rule, a registrant has four years to claim an ITC.

Line 107 – Amounts to add to ITCs

On line 107, enter the total of the amounts that may be added to the ITCs claimed on line 106. The amounts that may be included include, in particular:

• GST/HST included in a written-off bad debt;
• the GST rebate granted by a builder to an individual purchaser of a new dwelling, when that rebate corresponds to a GST refund;
• the GST/HST credit or refund granted to a non-resident of Canada for taxable installation services provided in Canada;
• certain adjustments related to pension plans, when a pension entity and eligible employers make a joint election;
• the 1 % credit applicable under the quick method of accounting, when the conditions are met.

Credit granted by a builder for a new dwelling

When a builder grants an individual purchaser of a new dwelling a GST credit as a refund, the builder must attach to the return the purchaser’s rebate application. The form mentioned is:

• Tax Refund Granted by the Builder for a New Dwelling (FP-2190.C).

Credit or refund to a non-resident of Canada

A registrant may include on line 107 the GST/HST credit or refund granted to a non-resident of Canada for the supply of taxable installation services in Canada. In this situation, the rebate application of the non-resident to whom the service was provided must be attached to the return.

Quick method of accounting

If the registrant has filed form:

• Election or Revocation of the Election to Use the Quick Method of Accounting (FP-2074), and has received written confirmation of the election, the registrant may claim a 1 % credit. This 1 % credit applies:
• to the first $30,000;
• of eligible taxable supplies;
• including GST/HST;
• for each fiscal year. However, when a registrant uses this method, the registrant cannot claim ITCs for operating expenses.

Pension plans and pension entities

When a pension entity jointly elects with the eligible employers of a pension plan to transfer all or part of its pension rebate to one or more eligible employers, each eligible employer may claim an adjustment in its tax return. This adjustment corresponds to the eligible employer’s determined share. To determine the amount, each eligible employer must complete, as applicable:

• Part 5 of form Election and Application for a GST/HST and QST Refund for a Pension Entity (FP-4607);
• or Part 6 of the same form.

Line 110 – Instalment payments

Line 110 concerns registrants who file an annual return. If such registrants have made GST/HST instalment payments, they must enter the total of those instalments on line 110.

Line 111 – Refunds used to reduce an amount owing

On line 111, it is possible to enter an amount from certain refund forms already completed. The amount entered must correspond to a refund that the registrant may use to reduce an amount payable. The forms mentioned are:

Form	Title
FP-2066	Application for a GST/HST and QST Refund for Public Service Bodies
FP-189	General Application for a GST/HST Refund
FP-524	GST Rebate for a New Residential Rental Property
FP-4607	Election and Application for a GST/HST and QST Refund for a Pension Entity
When an amount is entered on line 111, the completed refund application form must accompany the return.
If the registrant is required to file the return electronically, the refund form must be sent separately by mail.
Some of the forms mentioned may also be transmitted using Revenu Québec’s online services.

Important restriction for line 111

An amount may be entered on line 111 only to reduce a positive amount entered on line 109.

Line 113 – Result of Part 1

The amount on line 113 must be transferred to the corresponding box in the detachable part of form FPZ-34. Then, the amounts entered in the boxes of that detachable part must be added, taking into account the signs:

• plus (+);
• minus (–). If the result is positive, it must be entered in the “Balance to be paid” box of the detachable part of the form. If the result is negative, it must be entered in the “Refund claimed” box.

Part 2 – Return concerning a taxable real property, taxable carbon emission units or taxable imported supplies

Part 2 is used to report taxes related to:

• the acquisition of a taxable real property;
• the acquisition of taxable emission units;
• taxable imported supplies. It applies when the taxable real property or the taxable emission units were acquired to be used or supplied primarily in the course of the registrant’s commercial activities. The term primarily means here more than 50 %.

Definition of an emission unit

An emission unit is a right, credit or similar instrument that simultaneously meets the following criteria.

First criterion: issuance or creation by an eligible authority

The unit must be issued or created by, or on behalf of, one of the following persons or entities:

• a government;
• the government of a foreign country;
• the government of a political subdivision of a country;
• a supranational organization;
• an international organization;
• a board, commission or other entity established by one of the above bodies;
• an agency under one of those bodies. These persons or entities are referred to in the document as regulatory bodies.

Second criterion: use in a mechanism or agreement related to greenhouse gases

The unit must be capable of being used to meet a requirement set out in a mechanism or agreement that meets one of the following conditions:

• it is implemented by, or on behalf of, a regulatory body, for the purpose of regulating greenhouse gas emissions;
• it is prescribed by regulation.

Third criterion: representation of a specified amount of emissions

The unit must represent a precise amount of greenhouse gas emissions, expressed in carbon dioxide equivalent. The example given is:

• one metric tonne of carbon dioxide equivalent.

Instruments that do not meet the definition

A right, credit or similar instrument does not meet the third criterion if it does not represent a specified amount of greenhouse gas, even if it otherwise meets requirements related to an emissions regulatory mechanism. The example given is that of an instrument required to carry out certain manufacturing activities producing greenhouse gas emissions, but which does not represent a specified amount of greenhouse gas. Such an instrument does not satisfy the third criterion.

Regulated property

An emission unit may also be a regulated property. However, at the time the document was published, no property is prescribed by regulation.

Filing dates for the return

Parts 2 and 3 of the form must be filed within the prescribed time limits.

General rule

The return must be filed no later than:

• one month after the last day of the reporting period;
• or, in the case of an annual return, three months after the end of the business’s fiscal year.

Business individual with an annual return ending on December 31

For a business individual whose filing frequency is annual and whose reporting period ends on December 31, the filing deadline is June 15 of the following year. However, if that individual has to pay a GST/HST balance owing, payment must be made no later than April 30.

Due date falling on a non-business day

If the filing deadline falls on:

• a Saturday;
• a Sunday;
• a public holiday; the return and payment are considered received on time if they are received on the next business day.

Date the return is received

The date the return is received depends on the transmission method.

Transmission method	Date considered as the date received
In-person filing	Date on which the return is stamped by Revenu Québec
Mail submission	Postmark date

Date payment is received

The date payment is received varies according to the payment method used.

Payment made at a financial institution

When payment is made at a financial institution, the date of receipt corresponds to the date the payment is made. This includes payments made:

• at the financial institution counter;
• using the financial institution’s online payment service;
• at an automated teller machine.

Return mailed with a cheque or money order

If the return is mailed with a cheque or money order, the date payment is received corresponds to the date on which the return is stamped by Revenu Québec.

Post-dated cheque

When payment is made by post-dated cheque, the date payment is received corresponds to the date on which the cheque may be cashed.

Cheque or money order sent separately

If the cheque or money order is not sent with the return, the date payment is received corresponds to the date on which the cheque or money order is stamped by Revenu Québec.

Detailed instructions for Part 2

Line 113 – Carry forward the result of Part 1

On line 113 of Part 2, enter, where applicable, the amount from line 113 of Part 1.

Line 114 – Taxable real property or taxable emission units

On line 114, determine the value of:

• the taxable real property acquired;
• or the taxable emission units acquired. This line applies to acquisitions made to use or supply these properties primarily in the course of the registrant’s commercial activities. To calculate the GST or HST to be reported and remitted:

1. determine the value of the real property or emission units;
2. multiply this value by the applicable GST or HST rate at the time of purchase;
3. enter the result on line 114.

Line 115 – Taxable imported supplies

On line 115, determine the value of the consideration for certain taxable imported supplies. This line applies in particular to:

• taxable imported supplies of a service;
• taxable imported supplies of an intangible property;
• certain property subject to the direct delivery rules. To calculate the GST or HST to be reported and remitted:

1. determine the value of the supplies in question;
2. multiply this value by the applicable GST or HST rate;
3. enter the result on line 115.

Special rule for financial institutions

A financial institution that performs this calculation may have to apply special rules relating to imports.

Line 116 – Final result of Part 2

On line 116, add lines 113 to 115, respecting the signs:

• plus (+);
• minus (–). The amount obtained on line 116 must then be transferred to box 113 of the detachable part of form FPZ-34. The amounts in the boxes of this detachable part must then be added, taking into account the plus (+) or minus (–) signs. If the result is positive, it must be entered in the “Balance to be paid” box. If the result is negative, it must be entered in the “Refund claimed” box.

Special cases and exceptions

Use of the quick method of accounting

When a registrant uses the quick method:

• the amount on line 101 must include GST/HST;
• the registrant may claim a 1 % credit on the first $30,000 of eligible taxable supplies, GST/HST included, for each fiscal year, if the election has been confirmed in writing;
• the registrant cannot claim ITCs for operating expenses.

Acquisition of a taxable real property or taxable emission units

GST/HST related to the acquisition of a taxable real property or taxable emission units must not be included on line 103. It must instead be reported in Part 2, mainly on lines:

• 114 for taxable real property or taxable emission units;
• 115 for taxable imported supplies, as applicable. However, the GST/HST giving entitlement to an ITC in respect of the acquisition of a taxable real property or taxable emission units may be entered on line 106, in connection with the amount on line 114.

Deemed ITCs for used property

Deemed ITCs for acquired used property must not be included in the total on line 106. The only exception mentioned concerns deposits on beverage containers.

Meals and entertainment

When a full ITC has been claimed for meal and entertainment expenses, an adjustment may be required to take into account the percentage actually allowed. The allowed percentage indicated is 50 %.

Bad debts

Two situations related to bad debts are mentioned:

• GST/HST recovered when a written-off bad debt is collected may be added to tax collectible on line 104;
• GST/HST included in a written-off bad debt may be added to ITCs on line 107.

Refund for new dwelling granted by the builder

When a builder grants an individual purchaser of a new dwelling a GST credit as a refund, that amount may be included on line 107. The purchaser’s refund application must accompany the return. The related form is FP-2190.C.

Refund granted to a non-resident

A GST/HST credit or refund granted to a non-resident of Canada may be included on line 107 when it relates to taxable installation services performed in Canada. The non-resident’s refund application must accompany the return.

Pension plans

When a pension entity and eligible employers of a pension plan make a joint election to transfer all or part of the pension rebate, each eligible employer may claim an adjustment in its tax return. The adjustment is calculated based on the employer’s determined share. The applicable form is FP-4607, Parts 5 or 6, as applicable.

Business individual filing annually

For a business individual whose annual reporting period ends on December 31:

• the return must be filed no later than June 15 of the following year;
• if a GST/HST balance is owing, payment must be made no later than April 30.

Due date on Saturday, Sunday or public holiday

When a due date falls on a Saturday, Sunday or public holiday, the return and payment are deemed received on time if they are received on the next business day.

Post-dated cheque

A payment by post-dated cheque is not considered received on the date the cheque is mailed or received. It is considered received on the date on which the cheque may be cashed.

Financial institution and taxable imported supplies

A financial institution calculating the tax applicable to taxable imported supplies may have to take special import rules into account when they apply.

Procedures and steps

Completing Part 1 of the form

Step 1 – Enter supplies on line 101

Enter the total supplies of goods and services, generally according to accounting revenue.

• Exclude GST/HST and QST.
• Include GST/HST if the quick method of accounting is used.

Step 2 – Calculate tax collectible on line 103

Enter the total GST/HST:

• collected;
• due;
• deemed collected. Include tax on the self-supply of a residential complex. Do not include amounts related to the acquisition of a taxable real property, taxable emission units or taxable imported supplies.

Step 3 – Add adjustments on line 104

Enter the amounts to be added to tax collectible, including:

• GST/HST arising from the collection of a written-off bad debt;
• adjustments related to meal and entertainment expenses when the ITC claimed exceeds the allowed percentage of 50 %.

Step 4 – Enter ITCs on line 106

Enter the eligible ITCs for the period, as well as those not claimed in a previous period. Include only ITCs related to purchases or expenses used to make taxable or zero-rated supplies. Do not include deemed ITCs for used property, except for beverage containers.

Step 5 – Add eligible amounts on line 107

Add the amounts that may increase the ITCs, including:

• GST/HST included in a written-off bad debt;
• GST credit granted by a builder to a purchaser of a new dwelling;
• refund granted to a non-resident for taxable installation services in Canada;
• 1 % credit under the quick method, if applicable;
• adjustment related to a pension plan, if applicable. Attach the required forms where the document provides for them.

Step 6 – Enter instalment payments on line 110

If the return is annual and GST/HST instalment payments have been made, enter their total on line 110.

Step 7 – Enter certain refunds on line 111

Enter, where applicable, an amount from one of the following forms:

• FP-2066;
• FP-189;
• FP-524;
• FP-4607. This amount may only be used to reduce a positive amount entered on line 109. The completed refund form must accompany the return, or be mailed if the return must be filed electronically.

Step 8 – Carry forward line 113

Carry the amount from line 113 to the corresponding box in the detachable part of form FPZ-34. Add the amounts in this part taking the plus and minus signs into account. Enter the result:

• in “Balance to be paid” if it is positive;
• in “Refund claimed” if it is negative.

Completing Part 2 of the form

Step 1 – Carry forward line 113 from Part 1

Enter on line 113 of Part 2 the amount from line 113 of Part 1, where this applies.

Step 2 – Calculate the tax on a taxable real property or taxable emission units

For line 114:

1. determine the value of the taxable real property or taxable emission units;
2. verify that they are acquired to be used or supplied primarily, that is, more than 50 %, in commercial activities;
3. multiply the value by the GST or HST rate in force at the time of purchase;
4. enter the result on line 114.

Step 3 – Calculate the tax on taxable imported supplies

For line 115:

1. determine the value of the consideration for the taxable imported supplies in question;
2. apply the GST or HST rate;
3. enter the result on line 115. Financial institutions must take into account special import rules when they apply.

Step 4 – Calculate line 116

Add lines 113, 114 and 115, respecting the plus and minus signs. Transfer the result from line 116 to box 113 of the detachable part of form FPZ-34. Add the amounts in the detachable part:

• enter a positive result in “Balance to be paid”;
• enter a negative result in “Refund claimed”.

Forms mentioned

Number	Form name	Context of use
FPZ-34	GST/HST Return	Main return to be filed by the registrant
FPZ-34.CD	Detailed Calculation of GST/HST and Return Concerning a Taxable Real Property, Taxable Carbon Emission Units or Taxable Imported Supplies	Form covered by the document
FP-2190.C	Tax Refund Granted by the Builder for a New Dwelling	To be attached when the builder grants the purchaser a GST credit related to a new dwelling
FP-2074	Election or Revocation of the Election to Use the Quick Method of Accounting	Used to elect or revoke the quick method; the 1% credit requires written confirmation of the election
FP-4607	Election and Application for a GST/HST and QST Refund for a Pension Entity	Used notably for refunds or adjustments related to pension plans; Parts 5 or 6 as applicable
FP-2066	Application for a GST/HST and QST Refund for Public Service Bodies	May provide an amount to enter on line 111
FP-189	General Application for a GST/HST Refund	May provide an amount to enter on line 111
FP-524	GST Rebate for a New Residential Rental Property	May provide an amount to enter on line 111

Recordkeeping and supporting documents

Any person who operates a business or who must withhold or collect an amount under a tax law must keep:

• records;
• accounting books;
• an annual inventory. Records, books and supporting documents substantiating the information they contain must be kept for six years after the last year to which they relate. Records kept in electronic or computerized form must also be kept for the same period, on that same type of medium, in an intelligible form. The registrant must take the necessary measures to ensure and maintain the integrity of those records throughout their entire life cycle.

Signature

Any return must be signed by the registrant or by a person authorized to represent the registrant.

Confidentiality

The personal information entered in form FPZ-34.CD is protected by the Act respecting access to documents held by public bodies and the protection of personal information. It is kept in personal information bank ARC PPU 241.

Important warnings

Penalty for late filing

Under the Excise Tax Act, a penalty may apply when a return is filed late for a reporting period. This penalty applies to any amount owing for that period. It corresponds to 1 % of the total amounts owing for the period. An additional penalty of 0.25 % per month of delay is added to this penalty, up to a maximum of 12 months.

Interest on unpaid amounts

Any amount not paid by the due date bears interest. The applicable interest rate is the rate determined by regulation.

False statement

Filing a false return constitutes an offence. A person who commits this offence may be subject to a criminal prosecution.

Failure to keep or retain records

Failure to comply with the obligations relating to the keeping, retention, intelligibility and integrity of records constitutes an offence. A person in default may be subject to a criminal prosecution.

Legal disclaimer

The information provided in the document has no legal interpretive value for the Excise Tax Act or its regulations.

ITC: general deadline

An ITC must generally be claimed within four years.

Line 111: limited use

An amount entered on line 111 may only be used to reduce a positive amount entered on line 109.

Quick method: restriction on operating expenses

When a registrant uses the quick method of accounting and claims the 1 % credit, the registrant cannot claim ITCs for operating expenses.

Summary

The FPZ-34.CD form is used by GST/HST registrants who must detail their tax calculations, ITCs, adjustments and instalments related to form FPZ-34. Part 1 is used to calculate the current net tax, notably from lines 101, 103, 104, 106, 107, 110, 111 and 113. Part 2 is used to report separately the tax on taxable real properties, taxable emission units and certain taxable imported supplies, notably on lines 114, 115 and 116. Emission units must in particular represent a specified amount of greenhouse gas, such as one metric tonne of carbon dioxide equivalent. Returns are generally due one month after the end of the reporting period, or three months after the end of the fiscal year for an annual return, with a special rule on June 15 and April 30 for certain business individuals. ITCs are generally claimable within a period of four years, but several exclusions and conditions apply, notably for used property and the quick method. Late filing results in a penalty of 1 %, plus 0.25 % per month late up to 12 months, and unpaid amounts bear interest. Records and supporting documents must be kept for six years, and false statements or failures to meet recordkeeping obligations may lead to criminal prosecution.