What is the recaptured input tax credit (RITC) requirement for large Ontario businesses?

Ontario's recaptured input tax credit requirement was a rule that required certain larger GST/HST registrants, referred to as "specified persons," to repay, or "recapture," the provincial portion of the input tax credits they claimed on specific categories of expense — but the rule was phased out in stages and completely eliminated as of July 1, 2018, so no recapture obligation exists today, rather than simply keeping the full benefit of the Ontario component of HST paid on those particular costs the way other registrants can. It was introduced as part of Ontario's HST harmonization and applies only to the Ontario provincial component of the tax, not the federal portion.

The requirement targets a defined, relatively narrow list of expense categories, rather than every business cost, energy, telecommunication services, certain road vehicles and related expenses, and meals and entertainment are the kinds of categories typically affected, though the exact scope should be confirmed against current CRA guidance rather than assumed. Registrants who don't fall within the "specified person" threshold aren't subject to recapture at all, regardless of what they spend on those categories.

Because whether a business is a "specified person," and exactly which expenses require recapture, depends on figures and categories that need to be verified rather than assumed from general knowledge, a larger Ontario business should confirm its status and obligations with a tax advisor rather than guessing based on the general shape of the rule.