Maximizing Input Tax Credits for Your Small Business

Input Tax Credits (ITCs) let your business recover the GST/HST paid on eligible business expenses. Done well, they return thousands of dollars a year. Done poorly, they're a silent drain on your bottom line.

Eligible expenses are broad: office supplies, software subscriptions, business meals (50%), vehicle expenses for business use, rent for a commercial space, and professional fees. The key is that the expense must be for a commercial activity — personal expenses don't qualify.

The most common missed claims are partial-use expenses. A vehicle used 70% for business means 70% of the GST/HST paid is claimable. The same logic applies to home office costs and shared phone plans. Without tracking the business-use percentage, you either over-claim (risky) or under-claim (costly).

Documentation is everything. The CRA requires that you retain the receipts and invoices supporting each ITC claim. A credit card statement alone isn't enough — you need the actual vendor receipt showing the GST/HST amount. This is where clean bookkeeping pays for itself.

There's also a time limit: you generally have four years to claim ITCs for a given reporting period. Many businesses leave older eligible claims on the table simply because no one went back to capture them.

We reconcile every ITC against actual receipts, track business-use percentages, and recover eligible claims from prior periods. Book a free consultation to see how much your business could be reclaiming.