Can I get a refund if my HST input tax credits are larger than the HST I collected?

Yes. If your input tax credits (ITCs) in a reporting period exceed the HST you collected (output tax), you have a negative net tax balance — and the CRA owes you a refund. This refund is called a "net tax credit." Filing your return correctly and on time triggers the refund.

Refunds are common for businesses that are predominantly zero-rated exporters (who collect no HST on sales but pay HST on Canadian inputs), businesses in a pre-revenue or startup phase with large capital expenditures, or businesses that make a major purchase in a given period.

The CRA processes most HST refunds relatively quickly but may select your return for review, especially if the refund is large or if you are a new registrant. During a review, the CRA asks you to provide supporting documentation (invoices, bank statements) before releasing the refund. Monthly filers benefit from faster access to refunds than annual filers, which is one reason businesses with frequent refund positions often switch to monthly filing.