Mutual fund trailing commissions: postponement of GST/HST and QST to 2028

Postponement of the effective date

The effective date originally set for July 1, 2026 has been postponed to January 1, 2028. The CRA granted this additional time to allow industry members to make the necessary adjustments to their systems and procedures.

Early application and transitional provisions

Although mandatory compliance has been deferred, early application of these changes remains encouraged. Dealers who have already begun collecting GST/HST and QST on trailing commissions in anticipation of the original July 1, 2026 effective date may continue to do so.

Transitional provisions apply to dealers who have voluntarily applied the taxes prior to January 1, 2028:

• Dealers who voluntarily collect GST/HST and QST on trailing commissions before January 1, 2028 will be entitled to claim input tax credits (ITCs) and input tax refunds (ITRs) in respect of taxes paid on their business inputs, to the extent those taxes are attributable to the supplies of services in question.
• In return, the CRA and Revenu Québec will ensure that dealers claiming such ITCs or ITRs have also collected and remitted the applicable GST/HST and QST on the supplies to which those inputs are attributed.

GST/HST and QST registration

Dealers who registered for GST/HST and QST purposes in anticipation of the July 1, 2026 deadline do not need to cancel their registration. Those who are considering registering may do so now on a voluntary basis.

Contact information

For further information regarding the changes described in this tax update, or to discuss your particular situation, please contact Catherine Bouchard, Jordan Laforest-Claveau or your Forvis Mazars advisor directly.