Procurement cards

Develop strategies for determining your tax exposure

Procurement cards, also known as “P cards” or purchasing cards, have enjoyed growth in Canada as key elements in re-engineering the purchasing or procurement function. However, for organizations where tax compliance is centrally controlled and administered, the decentralization and local empowerment that procurements cards allow can lead to concerns about how they increase tax exposure.

For Goods and Services Tax (GST) and Quebec Sales Tax (QST) purposes, using procurement cards may lead to tax exposure if documentary requirements for claiming Input Tax Credits (ITCs) and Input Tax Refunds (ITRs) are not met. Eligible registrants may apply for approval to claim ITCs and ITRs based on an estimated amount of tax. Organizations with approved applications can take comfort that they are not at risk of exposure.

How PricewaterhouseCoopers can help

Our Indirect Tax team will review your current policies and procedures to determine your tax exposure. We will also help you with the application process to obtain exemption from the legislated documentary requirements for claiming ITCs and ITRs.

Contact one of our professionals to discuss your ITC and ITR claims.