Who can claim the GST/HST rebate on employment expenses with Form GST370, and how is it calculated?
For 2025 expenses, an employee can claim the GST/HST rebate on Form GST370 if they deducted the expenses on their return and their employer is a GST/HST registrant other than a listed financial institution. The rebate is 5/105 of eligible amounts paid with GST, or 13/113 to 15/115 with HST, claimed on line 45700 and taxed when received.
Who can claim the GST370 rebate, and who can't?
An employee qualifies when three things line up: they paid GST/HST on employment expenses, they deducted those expenses on their income tax return, and their employer is a GST/HST registrant. If the employer isn't registered, or is a listed financial institution, there's no rebate canada.ca. The rule sits in section 253 of the Excise Tax Act, which also allows only one application per calendar year
laws-lois.justice.gc.ca.
A listed financial institution includes banks, trust companies, credit unions, insurers, investment dealers, money lenders and investment plans laws-lois.justice.gc.ca. So a branch manager at a bank who files a T777 still gets nothing back.
| Your client | GST370? | Why |
|---|---|---|
| Employee of a registered corporation, expenses on the T777 | Yes | All three conditions met |
| Employee of a bank, credit union or insurer | No | Listed financial institution |
| Employee of an unregistered small supplier | No | Employer isn't a registrant |
| Partner in a registered partnership making taxable supplies | Yes, capped | Can't exceed the ITC the partnership could have claimed |
| Partner in a medical practice making only exempt supplies | No | The partnership couldn't claim an ITC either |
| Employee reimbursed for the expense | No, for the reimbursed part | Reimbursed amounts are excluded |
| Employee paid a reasonable, tax free allowance | No, for those expenses | Including CCA on the car |
| Employee paid a taxable allowance (T4 box 40) | Yes | The employer signs Part C |
Partners face one more limit: the partnership must use the expense to make taxable supplies, and the rebate can't exceed the input tax credit the partnership could have claimed in the last reporting period of its last fiscal year ending in the claim year canada.ca.
Which expenses carry GST/HST your client can get back?
| Expense | In the rebate? | Watch for |
|---|---|---|
| Office supplies, supplies, telephone and utilities | Yes | Personal use portion out |
| Travel and lodging in Canada | Yes | Most costs outside Canada carry no GST/HST |
| Meals and entertainment | 50% of what was paid | Long haul truck drivers: 80% in eligible travel periods |
| Motor vehicle fuel, repairs, parking | Yes, business use part | Personal kilometres out |
| CCA on a motor vehicle, musical instrument or aircraft | Yes, separate chart | Only if GST/HST was paid on the purchase |
| Workspace in the home | Yes, for taxable costs | Residential rent and mortgage interest carry no tax |
| Car insurance, licence and registration | No | Exempt supplies |
| Interest, salaries paid to an assistant | No | Exempt |
| Purchases from a small supplier that didn't charge tax | No | No GST/HST was paid |
| Expenses while the employer wasn't registered | No | Fails the registrant test |
That list follows the CRA's eligible and ineligible expense lists. The CRA also excludes any amount your client was or is entitled to have reimbursed, and the personal use portion of any expense canada.ca.
Allowances are the trap. A reasonable allowance isn't taxable, so the CRA treats the employee as not having paid the tax, and the expenses it covers drop out, CCA included. An unreasonable allowance is a taxable benefit, the employee is treated as having paid the tax, and the claim stands, but Part C of the form has to be completed canada.ca. The employer or an authorized officer, such as an immediate supervisor, controller or office manager, completes it
canada.ca. The deduction side of the same expenses runs through the T777 and the employer's T2200.
Which rebate fraction applies in each province?
| Tax paid on the expense | Rebate fraction | Where |
|---|---|---|
| GST at 5% | 5/105 | Alberta, BC, Manitoba, Saskatchewan, Quebec, the territories |
| HST at 13% | 13/113 | Ontario |
| HST at 14% | 14/114 | Nova Scotia from April 1, 2025 |
| HST at 15% | 15/115 | New Brunswick, Newfoundland and Labrador, PEI (and Nova Scotia before April 1, 2025) |
The fractions come from the CRA's calculation page. Separate fractions of 1/101, 2/102, 8/108, 9/109 and 10/110 apply only where the provincial part of the HST was paid on its own, for example on property brought into a participating province canada.ca.
The fraction follows the tax actually paid, not where your client lives. An Alberta employee who stays in a Toronto hotel paid 13% HST on that bill, so it goes in the 13/113 column. A Nova Scotia client's 2025 expenses split between 15% and 14% at April 1, 2025; the transition rules are on the HST rates page.
What does the rebate come to on a typical Ontario T777?
Your client is an Ontario commission salesperson with a GST/HST registered employer, no allowance and no reimbursements. Every purchase was in Ontario at 13% HST, and the car was bought from a dealer with HST. Their 2025 T777 shows:
| Expense (tax included) | Deducted on the T777 | In the rebate |
|---|---|---|
| Office supplies | $565.00 | $565.00 |
| Hotels on client trips | $1,130.00 | $1,130.00 |
| Client meals ($904 paid, 50%) | $452.00 | $452.00 |
| Fuel and repairs ($3,390 at 80% business use) | $2,712.00 | $2,712.00 |
| Car insurance ($1,800 at 80%) | $1,440.00 | $0 (exempt) |
| CCA on the car | $3,000.00 | $3,000.00 (Chart 2) |
Chart 1 (everything but CCA): $565 + $1,130 + $452 + $2,712 = $4,859. Rebate: $4,859 × 13/113 = $559.00.
Chart 2 (CCA): $3,000 × 13/113 = $345.13.
Total rebate: $904.13 on line 45700 of the 2025 return, with the form attached canada.ca. If the refund lands in 2026, your client reports $559.00 on line 10400 of the 2026 return and reduces the car's UCC at the start of 2026 by $345.13, instead of reporting that part as income
canada.ca. The insurance never enters the rebate even though it's fully deductible.
How is the rebate taxed once it arrives?
An employee includes the rebate in income for the year it's received, not the year of the expense: a 2024 rebate received in 2025 goes on the 2025 return, on line 10400 canada.ca.
The part tied to a vehicle, musical instrument or aircraft doesn't go on line 10400. It reduces the property's undepreciated capital cost at the start of the year it's received, which lowers CCA from then on. A partner reports the non CCA part on line 9974 of the business statement instead canada.ca.
If the CRA pays more than your client was entitled to, the excess has to be repaid, and interest runs on the balance at the prescribed rate canada.ca.
When is the GST370 deadline, and how is it filed?
Attach Form GST370 to the return for the year the expenses were deducted and enter the claim on line 45700. If it isn't filed with the return, send it to the tax centre with a letter. The deadline is four years after the end of the calendar year the expenses relate to, so 2025 expenses can be claimed until December 31, 2029. No receipts go with it canada.ca.
Records showing the GST/HST paid on each purchase, such as receipts, invoices and credit card statements, are kept for six years from the end of the year they relate to canada.ca.
Your client fills in Parts A, B and D, and one form covers both employee and partner expenses. Two shortcuts skip the charts: a claim for union, professional or similar dues only, and a tradesperson's or apprentice mechanic's tools deduction only, where the line 22900 amount goes straight onto the calculation lines canada.ca. The current form version is on the
canada.ca.
Sources
My client never claimed the GST370 for 2022. Is it too late?
No, not until December 31, 2026. The four years run from the end of the calendar year the expenses relate to, and a claim not filed with the return goes to the tax centre with a letter canada.ca. Only one application is allowed per calendar year
laws-lois.justice.gc.ca.
How does a Quebec employee recover the QST on the same expenses?
Through Revenu Québec, not the GST370. The QST rebate is claimed on line 459 of the Quebec return, using Form VD-358-V, and it's also reported on line 10400 of the federal return the year it's received, with the same UCC rule for vehicles and instruments canada.ca.
Does the employer have to sign the GST370?
Only if your client received an allowance that's taxable, shown in box 40 of the T4. Then the employer or an authorized officer completes Part C. Without an allowance, your client fills in Parts A, B and D alone canada.ca.
Can my client claim the rebate on a car bought privately?
No, not on the CCA. A private seller isn't a registrant and charges no GST/HST, and purchases from non registrants are outside the rebate canada.ca. The fuel, repairs and parking on that car still count for the business use part.
General information for the tax year shown, not advice for a specific client. Confirm the facts before you file or remit.