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.