Claiming input tax credits (ITCs)

What you can claim

If you are registered, you can generally recover the GST/HST paid on purchases and expenses to the extent they are used in making taxable supplies: supplies, rent, professional fees, equipment, software and similar business costs. Purchases used partly for personal or exempt purposes must be apportioned.

Restrictions to know

• Meals and entertainment: generally only 50% of the tax is recoverable.
• Passenger vehicles: ITCs are limited by the same cost caps used for income tax.
• Club memberships for recreation or dining: not claimable.
• Personal expenses: never claimable, even if paid through the business.

Documentation

The information you need depends on the purchase amount. Above $100, the invoice must show the supplier's GST/HST registration number; at $500 or more it must also show your business name, the payment terms and a description of what you bought. See our guide to HST invoice requirements.

Time limit

For most registrants, ITCs must be claimed by the due date of the return for the last reporting period that ends within four years after the end of the period in which they could first have been claimed. The limit is two years for certain financial institutions.

Common mistakes

1. Claiming tax on purchases from suppliers who are not registered and did not charge GST/HST.
2. Claiming on zero-rated or exempt purchases where no tax was paid.
3. Claiming the same invoice twice, often after switching accounting systems.
4. Missing or invalid supplier registration numbers. You can verify these with the CRA's online GST/HST number confirmation tool.