MEC Credit Notes

MEC has issued credit notes to eligible members by email or mail, as required by the Canada Revenue Agency. Credit notes cannot be redeemed for cash, nor used for purchases. Most MEC members do not need to take any action upon receipt of their credit note.*

Your credit note contains information about patronage dividends from 2001 to 2012, and the sales tax (GST/HST/QST) portion of each dividend. Each dividend represents your share of MEC's total declared patronage dividend for the year, based on the amount you spent at MEC. In turn, your patronage dividend is applied to the purchase of additional shares in the Co-op. Those shares represent your ownership in MEC.

We used the term "patronage dividends" on your credit note and this page, as that's the term the Canada Revenue Agency uses. However, in MEC Rules, we call them "patronage returns."

*GST/HST/QST registrants (i.e., businesses) should consult tax advisors for appropriate treatment of the tax adjustment and patronage dividend amounts shown on their credit notes in their respective GST/HST/QST and income tax filings.

Credit Note FAQ

Are credit notes issued to all MEC members?

No. Credit notes are only issued to eligible MEC members. Eligibility is based on three criteria:

• You're a Canadian resident (including those living abroad)
• You made purchases at MEC between 2001 and 2012
• You're not tax exempt

How do I know if I've been issued a credit note?

If you're eligible to receive a credit note, we issued one to you by mail or email. If you recently moved or changed email addresses, you may not have received your credit note.

If you haven't received your credit note, or to update your contact information, call us at 1.800.474.7704.

"Credit note" sounds like something that can be redeemed for cash. Can it be?

No. Credit notes cannot be redeemed for cash, nor used for purchases. Your credit note shows the amount of your patronage dividend, which is applied to the purchase of additional shares in MEC.

What's a patronage dividend?

In years when MEC earns a surplus, we return that surplus to members, based on the amount they spent at MEC that year. In your credit note, the portion of the surplus that's returned to you is called a patronage dividend. Your patronage dividend is applied to the purchase of additional shares in the Co-op.

We used the term "patronage dividend" on the credit notes and this page, as that's the term the Canada Revenue Agency uses. However, in MEC Rules, we call it a "patronage refund."

Does MEC declare a patronage dividend every year?

While patronage dividends are only declared in years that MEC earns a surplus, we plan for and strive to generate a surplus every year. See MEC Rules for more information on when patronage dividends (called "patronage returns" in the Rules) are declared.

What do credit notes have to do with patronage dividends?

Credit notes are the way MEC tells members about their patronage dividends. The Canada Revenue Agency considers your patronage dividend a sales rebate. When you originally purchased items at MEC, you paid sales tax on those items. The Canada Revenue Agency requires us to provide you with information about your patronage dividends and the tax you paid on the amount that's being refunded as a patronage dividend.

Do I have to declare anything from the credit note on my income tax return?

Most MEC members do not need to take any action upon receipt of their credit note. GST/HST/QST registrants (i.e., registered businesses) should consult their tax advisors for appropriate treatment of the tax adjustment and patronage dividend amounts noted in their credit note in their respective GST/HST or QST and income tax filings.

Is it possible to opt out of receiving credit notes?

No. MEC is legally required by the Canada Revenue Agency to send credit notes to eligible members. We will issue credit notes every year that a patronage dividend is allocated. So you can't opt out of receiving credit notes, but you can choose to receive them by email.

Still have questions?

Phone us at 1.800.474.7704.