How to Track GST/HST on Your Business Expenses
Claiming input tax credits (ITCs) is one of the most valuable tax advantages for self-employed Canadians. Here's how to track GST/HST correctly so you never leave money on the table.
Marcus Chen
Tax Specialist
If you're registered for GST/HST (which is mandatory once your revenue exceeds $30,000 in any 12-month period), you're entitled to claim input tax credits (ITCs) for the GST/HST you paid on business expenses. This effectively means the government refunds you the sales tax on legitimate business purchases — a significant benefit worth hundreds or thousands of dollars annually.
Understanding GST vs. HST by Province
- Ontario, New Brunswick, Nova Scotia, PEI, Newfoundland & Labrador: 15% HST
- British Columbia, Manitoba, Saskatchewan: 5% GST + provincial sales tax (PST) — PST is NOT recoverable as an ITC
- Alberta, Yukon, NWT, Nunavut: 5% GST only — no provincial sales tax
- Quebec: 5% GST + 9.975% QST — QST is claimed separately through Revenu Québec
What You Need on a Receipt to Claim an ITC
The CRA has tiered documentation requirements based on the purchase amount. For purchases under $30, a simplified receipt showing the vendor name, date, and total is sufficient. For purchases between $30 and $149.99, the vendor's GST/HST registration number must also be present. For purchases of $150 or more, you also need the buyer's name or trade name, and a description of the goods or services.
Important: PST paid in BC, Manitoba, or Saskatchewan cannot be claimed as an input tax credit — only the federal GST portion is recoverable. Quebec's QST must be claimed separately on your QST return with Revenu Québec.
Filing Period: Annual vs. Quarterly vs. Monthly
When you register for GST/HST, the CRA assigns you a reporting period based on your revenue. Businesses with under $1.5 million in taxable supplies generally file annually. Between $1.5 million and $6 million, quarterly filing applies. Over $6 million requires monthly filing. You can elect to file more frequently if it helps your cash flow — particularly useful if you often receive large refunds.
- Annual filers: return due June 15 (for calendar-year reporters), payment due April 30
- Quarterly filers: return and payment due one month after each quarter ends
- Keep all GST/HST-eligible receipts in a dedicated folder or app category
- Reconcile your ITC claims against your expense records before each filing