Form GST118 Election or Revocation of an Election for a Financial Institution to Use the Prescribed Percentage - Canada

Form GST118 is used in Canada for financial institutions to elect or revoke their election to use the prescribed percentage method for calculating their input tax credit recoveries. This method allows financial institutions to simplify their calculations for claiming GST/HST input tax credits.

The Form GST118 Election or Revocation of an Election for a Financial Institution to Use the Prescribed Percentage in Canada is filed by the financial institution itself.

Form GST118 Election or Revocation of an Election for a Financial Institution to Use the Prescribed Percentage - Canada - Frequently Asked Questions (FAQ)

Q: What is Form GST118? A: Form GST118 is a document used in Canada for election or revocation of an election for a financial institution to use the prescribed percentage.

Q: What is the prescribed percentage? A: The prescribed percentage is the percentage of the harmonized sales tax (HST) that a financial institution may claim as input tax credits.

Q: Who can use Form GST118? A: Form GST118 is specifically for financial institutions in Canada.

Q: What is the purpose of using the prescribed percentage? A: Using the prescribed percentage allows financial institutions to claim input tax credits on the HST paid.

Q: When should I use Form GST118? A: You should use Form GST118 when you want to elect or revoke an election to use the prescribed percentage.

Q: Do I need to file Form GST118 every year? A: No, once you make the election or revoke the election, it remains in effect until you make another election or revoke it.

Q: Are there any conditions for using the prescribed percentage? A: Yes, there are specific conditions outlined by the CRA that must be met in order to use the prescribed percentage.

Q: Can I make changes to the prescribed percentage election? A: Yes, you can make changes to the prescribed percentage election by completing and submitting a new Form GST118.

Q: What should I do if there are changes in my financial institution's circumstances? A: You should notify the CRA of any changes in your financial institution's circumstances that may affect the prescribed percentage election.