When you use only a percentage for your business, you have to reduce the input tax credit accordingly. The general time limit for claiming an input tax credit is under four years. However, for specified persons, the time limit is two years. Specified persons include all listed financial institutions and large registrants who must be reporting on a monthly basis. There are special rules for meals, entertainment and passenger vehicles.
Restrictions also apply to items bought for personal use.
You can claim the amount of tax actually paid or payable, or the amount of tax that you would pay if you bought the property at its fair market value at the time of registration, whichever is less. You can also claim input tax credits on certain business operating expenses that you paid before registering that apply to the time after registering. Keep receipts and records showing the tax paid or payable in case we ask to see them. To do this, write to your tax services office to request an adjustment. If the adjustment increases the balance you owe, send a cheque or money order payable to the Receiver General with your letter.