Many insurance and financial institutions have a high compliance burden from indirect taxes, owing to the need to distinguish between taxable and exempt supplies and the restriction that many face in reclaiming all the VAT paid on their inputs. Insurance companies, banks, and security dealers in Canada now face new indirect tax GST/HST and Quebec sales tax (QST) challenges. With increased costs for non-compliance (such as penalties) and increased audit activities by the tax authorities, insurance companies banks, and security dealers need to understand and apply all the complex tax rules that apply to their specific facts and circumstances. Many taxpayers are still dealing with changes introduced in past years, including significant GST/HST amendments, changes to Canada Revenue Agency policies, new HST rates, and new compliance obligations. These institutions and their advisers need to ensure that their VAT administration has been adapted to incorporate the new requirements.
Related Posts
Canada cuts PIT, lifts first-time home buyer GST, removes federal fuel charge
Canada’s Department of Finance confirmed that the Making Life More Affordable for Canadians Act (Bill C‑4) obtained royal assent and entered into force on 12 March 2026. The bill introduces key measures to reduce costs, helping Canadians save
Read MoreCanada: CRA sets Q2 2026 interest rates on tax overdue, refund amounts
The Canada Revenue Agency (CRA) has announced on 24 February 2026 the prescribed annual interest rates that will apply to any amounts owed to the CRA and to any amounts owed by the CRA to individuals and corporations. These rates will be in
Read MoreCanada, Kosovo begin income tax treaty talks
According to a statement from Kosovo’s Ministry of Industry, Entrepreneurship, and Trade, representatives from Kosovo met with the Ontario Chamber of Commerce on 5 March 2026 to discuss investment opportunities and strengthening economic
Read MoreEU, Canada strengthen CETA partnership with new investment, trade measures
The European Commissioner for Trade and Economic Security, Maroš Šefčovič and the Canadian Minister for International Trade, the Honourable Maninder Sidhu, co-chaired the fifth meeting of the Joint Committee of the European Union (EU)-Canada
Read MoreEU, Canada launch negotiations for a digital trade agreement
The EU Commissioner for Trade and Economic Security, Maros Sefcovic, and Canada's Minister for International Trade, Maninder Sidhu, launched negotiations for an EU-Canada Digital Trade Agreement (DTA) on 6 March 2026. Building on nine years of
Read MoreAustralia, Canada agree to revise tax treaty framework
Australian Prime Minister Anthony Albanese and Canadian Prime Minister Mark Carney issued a joint statement on 5 March 2026 at the outset of Carney's first official visit to Australia. The two leaders have committed to modernising the two
Read More