What is it?

An Input Tax Credit (ITC) is an allowable deduction against the taxes payable for commercial activities.  The ITC is equal to 100% of the taxes paid on any material/supplies used in creating the final product or service.

Why is it important?

It is important to isolate commercial activity so that the value of the full ITC is realized.   This ensures the department is not paying more taxes than they are required.

Where do I find more information?