GST/HST input tax credits let you get back the GST/HST you pay on business costs. You claim them on line 106 of your return. Most registrants have 4 years to claim, but you still need the right paperwork.
Last updated October 30, 2026. Reviewed by Aryan Patel, founder of Senvora Group, a bookkeeping firm that supports CPA firms and business owners in Canada and around the world. Everything below comes from the CRA page on input tax credits and the related CRA pages listed in Sources, checked in October 2026. Senvora does not file taxes. This is general information, so confirm your own situation with a CPA.
Key takeaways
- An input tax credit, or ITC, is how a GST/HST registrant recovers the GST/HST paid or payable on purchases and expenses for commercial activities.
- You claim ITCs on line 106 of the GST/HST return.
- For most registrants the time limit is 4 years. Some larger businesses and listed financial institutions get 2 years.
- Meals and entertainment are limited. For most businesses, the CRA says the eligible share is 50%.
- Personal use costs never qualify. Mixed use costs are claimed by the share used in your business.
- No receipt, no credit. The CRA says you need sufficient documentary evidence before you claim.
What an input tax credit actually is
You charge GST/HST on your sales. You also pay GST/HST on your costs. An ITC lets you subtract the tax you paid on the business side from the tax you collected. What is left is your net tax.
New to Canadian bookkeeping rules? Our Canada bookkeeping guide puts GST/HST, payroll and T4 dates in one place.
The CRA page on input tax credits puts it simply. As a registrant, you recover the GST/HST paid or payable on purchases and expenses related to your commercial activities by claiming ITCs. If you want the filing dates for the return itself, see our GST/HST filing and payment deadlines guide.
Who can claim them
The CRA says you may be eligible if all of these apply:
- You acquired, imported or brought into a participating province property or a service for use in your commercial activities.
- You were a GST/HST registrant in the reporting period when the tax was paid or became payable.
- GST/HST was paid or payable by you on that purchase.
- You have sufficient documentary evidence before you claim.
- You claim within the time limit.
That second point matters. If you are not registered yet, you cannot claim. Our GST/HST registration and small supplier rule guide explains when registration becomes mandatory. The CRA also notes that no ITC is available for GST/HST on services or rent for periods before you registered.
What you can claim and what you need: a quick table
This table pulls the main cases together. The notes column shows where the rules get tricky.
| What you can claim | What you need | Notes |
|---|---|---|
| Rent, utilities, telephone and office expenses | A proper invoice or receipt that meets the thresholds below | If used only in commercial activities, you can generally claim the full GST/HST paid. |
| Professional fees, delivery and freight, maintenance and repairs | Invoice with the supplier details the CRA lists for the amount | The expense must be reasonable in quality, nature and cost for your business. |
| Fuel and motor vehicle operating costs | Receipts, plus a fair way to split business and personal use | Same percentage as most operating expenses. Capital vehicles have extra limits. |
| Meals and entertainment | Receipts showing the tax paid | Most businesses can claim 50% of the GST/HST on reasonable expenses. |
| Business use of home | Records of the space and how it is used | The CRA says the workspace must be your principal place of business and used 90% or more to earn business income, regularly, to meet clients. |
| Travel such as hotels, airfare and car rentals | Hotel, airline or rental invoices that meet the thresholds | Meals and entertainment on the trip follow the meals rule. |
| Club memberships | Not claimable in most cases | No ITC if the club mainly offers dining, recreation or sports. A resale exception exists for businesses that sell memberships. |
| Personal use items | Not claimable | Property or services for personal consumption, use or enjoyment do not qualify. |
The paperwork: what must be on the invoice
The CRA page on input tax credits lists the supplier information you need based on the invoice amount. Here it is in plain form.
| Invoice amount | What it must show | Notes |
|---|---|---|
| Under $100 | Supplier name or trade name, date, and total amount | You do not need a supplier GST/HST number at this level. |
| $100 to $499.99 | The same three items, plus the GST/HST amount (or a statement that the total includes it) and the supplier GST/HST registration number | No buyer name needed. |
| $500 or more | All of the above, plus the buyer name, a description of the goods or services, and the payment terms | Keep these invoices easy to find. |
The CRA also lists reduced requirements for a few cases. These include employee allowances, procurement cards and taxi or ride sharing fares. Ask your CPA how they apply to you.
How long do you keep it all? The CRA page on records to keep says usually 6 years from the end of the year the records relate to. You do not have to send receipts with an electronic filing, but you must keep them in case the CRA asks.
Meals, personal use and mixed use
Here is where owners lose money or overclaim. The CRA page on the ITC eligibility percentage sets out the percentages.
- Most operating expenses: if commercial use is 90% or more, the page says you can claim 100%. Between 10% and 90%, you claim the percentage of use. At 10% or less, no ITC.
- Meals and entertainment: for most businesses the eligible share is 50%, and only for reasonable expenses.
- Allocation method: it must be fair, reasonable and used consistently through the year.
Here is the CRA example for a mixed use cost. A cost carries $80 of HST and is used 70% in your business. Your ITC is $56. The other $24 stays with you.
The CRA page on percentage of use in commercial activities gives floor space as a common way to split costs between commercial and non commercial use. Pick a method, write it down and stick with it.
Passenger vehicles and bigger purchases
Buying a vehicle is not the same as buying paper. The CRA treats capital purchases differently from day to day expenses.
For passenger vehicles and aircraft, the CRA page on the ITC eligibility percentage shows a table. At 90% or more commercial use, corporations and public service bodies, partnerships and individuals can claim 100%. At 10% or less, none can claim. In between, the answer depends on who you are. Some may claim based on capital cost allowance instead.
The same page also lists cost limits for passenger vehicles, and no ITC is allowed on the part of the cost above the limit. The limit changes by purchase year, so check the current figure on the CRA page. Vehicles are a good topic to review with your CPA before you buy, not after.
The time limit to claim
Most registrants have four years. The CRA page on input tax credits says to claim by the due date of the last reporting period ending within four years after the period when the ITC first became available.
The CRA gives an example. A purchase made from October 1 to December 31, 2024 can be claimed by the January 31, 2029 due date for the period ending December 31, 2028.
A shorter two year limit applies to listed financial institutions, and to some non charities with threshold amounts over $6 million in both the current and preceding fiscal year. Do not wait on any of this. Claim in the period you have the paperwork.
Where ITCs go on the return
The CRA instructions for preparing a GST/HST return says to enter eligible ITCs for the reporting period on line 106. It also says to include any ITCs you did not claim in an earlier period, if the time limit has not expired.
Line 107 covers adjustments. Line 108 is total ITCs and adjustments. On an electronic return, line 108 is calculated for you from lines 106 and 107.
If you use the quick method, the CRA says you cannot claim ITCs for operating expenses. Some purchases, such as land or items eligible for capital cost allowance, may still qualify. That is a big reason to know which method you are on.
Common mistakes to avoid
The CRA names the first two below as common errors. The last two are the ones we see most in the books.
- Claiming ITCs on purchases made to produce exempt supplies.
- Claiming ITCs on goods and services bought for personal use or enjoyment.
- Claiming without proper supporting documents.
- Claiming the full tax on a meal instead of the allowable part.
The bookkeeping angle: receipts and coding
ITCs are won or lost in the books. Not on the return. If a receipt is missing in March, a claim in April is shaky.
Here is what a clean system looks like in general terms. Capture every receipt the day it happens. Attach it to the transaction in your accounting software. Use the right tax code on each line, so the GST/HST lands in the right place. Review codes for meals, personal items and mixed use costs. Then reconcile your tax account to your return before you file.
Tax codes go wrong more than you would think. In the QuickBooks files we review, setup problems showed up in most of them. Read the full 5 QuickBooks setup errors we see most to see what to watch for. And if your books need a reset first, our QuickBooks Online cleanup checklist is a good place to start.
If you pay staff, remember that payroll has its own deadlines. See our Canada payroll remittance deadlines guide and the T4 and T4A filing deadline guide.
Frequently asked questions
What is a GST/HST input tax credit?
It is how a registrant recovers the GST/HST paid or payable on purchases and expenses for its commercial activities. You claim it on line 106 of the GST/HST return.
How long do I have to claim an ITC?
The CRA says most registrants have four years, counted by reporting periods. A two year limit applies to listed financial institutions and some larger non charities. Check the CRA page or ask your CPA which applies to you.
Can I claim GST/HST on meals?
Only part of it. For most businesses the CRA says the eligible share of reasonable meals and entertainment is 50%.
What if I use something for business and personal use?
You generally claim only the part that relates to commercial use. For most operating expenses, the CRA says 90% or more commercial use allows 100%, and 10% or less allows none. Between those, you claim the percentage of use.
What documents do I need to support an ITC?
The CRA lists supplier details by invoice amount. Under $100 you need the supplier name, date and total. From $100 to $499.99 you add the GST/HST amount and the supplier GST/HST number. At $500 or more you also need the buyer name, a description and the payment terms.
Sources
- CRA page on input tax credits (canada.ca)
- CRA page on the ITC eligibility percentage (canada.ca)
- CRA page on percentage of use in commercial activities (canada.ca)
- CRA page on records to keep (canada.ca)
- CRA instructions for preparing a GST/HST return (canada.ca)
Want help getting ITCs right?
Senvora Group handles monthly outsourced bookkeeping for business owners and CPA firms, including tax code reviews and receipt tracking. We do not file taxes, so your CPA still signs off on your return. You can also DM Aryan. Do you know how much GST/HST you may be leaving on the table this year?
