Can I Claim HST on My GST Return

Can I Claim HST on My GST Return? A Simple Breakdown for Canadian Businesses

You paid HST on that new laptop. And the office supplies. And the software subscription. So where does all that money go, and can you actually get it back?

The short answer: yes, you can claim HST on your GST return through something called Input Tax Credits (ITCs). But the CRA has rules. Miss one, and you’re leaving money on the table, or worse, triggering an audit.

Here’s what we’ll cover:

How ITCs actually work (and what qualifies)
The difference between GST and HST claims
Documentation the CRA requires
Common mistakes that cost businesses money
How to file your claim the right way

If tax paperwork makes your head spin, you’re not alone. NRK Accounting helps Toronto and GTA businesses sort through the confusion, file accurately, and maximize every refund they’re owed.

How ITCs Actually Work (and What Qualifies)

An Input Tax Credit (ITC) lets you recover the GST/HST you paid on business purchases and expenses. Think of it as a refund mechanism built into Canada’s tax system.

The Basic Formula

You collect GST/HST from customers. You pay GST/HST on business expenses. The difference is what you owe (or what the CRA owes you).

What Qualifies for ITCs

To claim an ITC, your business must meet all of these conditions:

You’re registered for GST/HST during the reporting period
The purchase was for use in your commercial activities
You have proper supporting documentation (receipts, invoices)
You claim within four years of the fiscal year the expense applies to

**What Doesn’t Qualify**

The CRA won’t let you claim ITCs on:

Personal expenses
Club memberships (golf, fitness, dining)
Purchases made to produce exempt supplies

If you’re a startup, consider registering for GST/HST early. You can recover ITCs on startup costs that way. Wait too long, and that money’s gone.

The Difference Between GST and HST Claims

GST and HST aren’t different taxes. HST is simply GST combined with provincial sales tax into one streamlined rate. Same form. Same filing process. The CRA handles both.

Quick Breakdown by Province

Province	Tax Type	Rate
Ontario	HST	13%
Nova Scotia	HST	14%
New Brunswick, Newfoundland & Labrador, PEI	HST	15%
Alberta, Yukon, NWT, Nunavut	GST only	5%
BC, Saskatchewan, Manitoba	GST + PST	Varies
Quebec	GST + QST	14.975% combined

What This Means for Your ITC

You can claim ITCs for HST paid in a participating province even if your business operates elsewhere. Bought equipment in Ontario for your Alberta business? You can still recover that 13%.

PST is not recoverable. If you’re in BC, Saskatchewan, or Manitoba, you can only claim the federal GST portion (5%) as an ITC. The provincial piece becomes a business cost.

Tracking this across provinces gets complicated fast. NRK Accounting’s bookkeeping services help Toronto businesses separate what’s claimable from what isn’t, so nothing slips through the cracks.

Documentation the CRA Requires

No receipt? No credit. The CRA takes documentation seriously, and missing paperwork is one of the top reasons ITC claims get denied during audits.

What Your Invoice Must Include

The details vary based on the purchase amount:

Under $30:

Supplier’s name or business name
Date of purchase
Total amount paid (including tax)

$30 to $149.99:

Everything above, plus
Supplier’s GST/HST registration number
Description of goods or services

$150 and over:

All of the above, plus
Your business name (or your agent’s name)
Terms of payment

Common Documentation Mistakes

Using credit card statements alone (they show what you paid, not what you bought)
Missing GST/HST registration numbers on invoices
Faded or illegible receipts
Claiming ITCs under a different company name than what’s on the invoice

If a receipt doesn’t describe the purchase clearly, write on the back what it was for. You won’t remember six months later during an audit.

Keeping records organized isn’t glamorous work. But it protects your claims and keeps the CRA off your back. NRK Accounting’s HST filing and bookkeeping services ensure your documentation meets CRA standards before you hit “submit.”

Common Mistakes That Cost Businesses Money

The CRA doesn’t hand out warnings. One slip-up on your ITC claim can mean denied credits, penalties, or a full-blown audit. Here are the errors that trip up Toronto businesses most often.

1. Claiming Under the Wrong Name

One of the most common reasons the CRA denies ITCs is because the credit is claimed by someone other than the named recipient on the invoice.

This happens a lot with related companies. Company A buys supplies, but Company B pays the bill and tries to claim the credit. The CRA won’t allow it.

Fix it: Make sure the invoice matches the legal name of the business claiming the ITC.

2. Missing or Invalid GST/HST Numbers

If your supplier isn’t registered for GST/HST, you can’t claim ITCs on what you paid them. And if they gave you a fake registration number? The CRA will deny your claim and potentially hit you with penalties.

Fix it: Verify registration numbers through the CRA’s GST/HST registry before paying large invoices.

3. Claiming Personal Expenses

That laptop you bought for your home office, but also use to watch Netflix? The CRA sees mixed-use purchases differently than you do. You can only claim ITCs to the extent purchases are used in commercial activities.

4. Letting the Deadline Pass

Failing to file ITC claims within the statutory deadline permanently disqualifies you from claiming them. For most businesses, you have four years. Miss it, and that money’s gone.

5. Poor Record-Keeping

Poorly documented ITCs lead to audit troubles down the road. Faded receipts, missing invoices, and vague descriptions give the CRA every reason to deny your claim.

Pro tip: Digitize your receipts monthly. Cloud storage is cheap. CRA penalties aren’t.

How to File Your Claim the Right Way

Filing your GST/HST return isn’t complicated once you know the process. As of 2024, most registrants are required to file electronically. Paper returns now trigger penalties for most businesses.

Step 1: Gather Your Records

Before you touch the CRA portal, pull together:

Total sales revenue (before tax)
GST/HST collected from customers
GST/HST paid on business expenses (your ITCs)
Any adjustments or rebates

Step 2: Choose Your Filing Method

You have several options:

Method	Requirements
CRA My Business Account	No access code needed
GST/HST NETFILE (online form)	4-digit access code required
Accounting software (e.g., QuickBooks)	Uploads via Internet File Transfer
Phone (TELEFILE)	Access code required

Paper filing is only allowed for charities, selected financial institutions, or businesses with a CRA-approved exemption.

Step 3: Complete Your Return

For most small businesses, you only need to fill in three boxes:

Line 101: Total sales and revenues
Line 105: GST/HST collected
Line 108: Total ITCs claimed

Review the return, click submit, then save the confirmation as a PDF.

Step 4: Pay What You Owe (or Get Your Refund)

If your ITCs exceed the tax you collected, the CRA owes you. If not, payment is due by your filing deadline. Miss it, and interest starts piling up fast.

Know Your Deadlines

Filing Frequency	Deadline
Monthly or Quarterly	One month after the period ends
Annual	Three months after the fiscal year-end

Pro tip: Keep your records for six years, just in case the CRA asks for copies.

Filing GST/HST returns and tracking ITCs takes time that most business owners don’t have. NRK Accounting handles HST filing, bookkeeping, and CRA compliance for small businesses across Toronto and North York. If you’d rather focus on running your business than chasing deadlines, reach out for a free consultation.

Get Your HST Claims Right With NRK Accounting

Claiming HST on your GST return isn’t complicated once you understand the rules. Track your purchases, keep your documentation tight, verify supplier registration numbers, and file on time. Do that, and you’ll recover every dollar you’re entitled to.

Key takeaways:

ITCs let you recover GST/HST paid on legitimate business expenses
You can claim HST from any province, but PST is never recoverable
Documentation requirements vary by purchase amount (under $30, $30-$149, $150+)
The CRA denies claims most often due to wrong names on invoices and missing records
Electronic filing is mandatory for most businesses as of 2024
You have four years to claim missed ITCs before they’re gone for good

NRK Accounting helps Toronto and North York businesses file accurate GST/HST returns, track ITCs, and stay on the CRA’s good side. Whether you need monthly bookkeeping or just want someone to handle your HST filings, we’re open seven days a week with virtual consultations available.