A production company is entitled to recover GST paid in the course of carrying on a commercial activity, provided that it is registered as a GST vendor. Any commercial activity may choose to be GST registered. Garage Sales GST registrants are required to collect GST on all sales of tangible and intangible goods and services in Canada. This includes asset sales such as set dressings, props, wardrobe, etc. The net difference between GST collected and GST is either paid or refunded on a monthly, quarterly or annual basis.
Most productions opt for a monthly filing frequency since they are in a refund position.
Refund Timing Canada Customs and Revenue Agency undertakes to refund amounts due within 21 days from the GST filing date or they will pay interest on late refunds. No supporting documentation is required to be submitted. Support Documentation Correct GST documentation is required to validate GST refunds if requested by a GST auditor. The absence of commercial activities in Canada may invalidate GST refunds unless export can be verified. BC Provincial Sales Taxes may be avoided.