Below is a list of questions we get most from clients.
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To claim your HST rebate, start by contacting the CRA (1.800.959.5525) to register your business. Do so under your personal name as a sole-proprietorship. The CRA representative will ask you a few questions before registration, below you will find our suggested responses:
- Nature of Business – Ontario Microfit Program (generation and sale of electricity produced through solar panels to Local Distribution Company)
- Registration Type – Voluntary Registration
- Expected Annual Sale (Turnover) – Less than $20,000 per year
- Effective Date – Date of registration
- Frequency of Filing – Quarterly
Once your business is registered with the CRA you should receive a 4-digit security code. If you are not provided this please ask the CRA representative, as you will need both your business number and access code to file your HST. For all costs related to your solar project, ensure to provide all receipts / and invoices to your accountant for filing. Your HST return can be filed once all invoices related to your project are complete. HST returns are filed on a quarterly basis, any quarters where partial invoices have been issued should be filed as a NIL return until all invoices are complete.
You can claim the HST on expenses related to your solar project including:
- Your total system cost
- Taxes on any payments you receive from your Local Distribution Company
- Additional costs* related to your solar project, which can include:
- Hydro meter relocations
- Downspout relocations
- Gas valve extensions
- Any expense listed on Part 5 of the T2125 form (Statement of Business or Professional Activities)
It is the taxpayers’ responsibility to provide evidence of costs incurred that which are directly related to generating income from their solar system.