How to Calculate RITC

How to Calculate RITC
RITCs are a recapture of HST credits claimed by large businesses.

Enter the your gross input tax credits (ITCs) and adjustments for the reporting period on line 1,400 of your GST/HST Netfile return. This is equivalent to the eligible tax paid on eligible expenses for your business that can be claimed by you as a credit.

Enter the total amount of recaptured ITCs for each province for the reporting period on line 1,401 of your GST/HST Netfile return. This is the total amount of the specific ITCs the government has indicated must be paid back by businesses. Review the government's tax bulletin on the subject to get details on what must be paid back.

Confirm the GST/HST Netfile program has correctly determined the recapture rate, which will automatically appear on line 1,402. The calculation is done by multiplying the amount on line 1,401 by the recapture rate. For the first five years of the program, the recapture rate is 100 percent. For year six, it is 75 percent; for year seven, it is 50 percent; and for year eight it is 25 percent.