GST/HST & QST guides
Practical guides on GST/HST, QST, input tax credits, and CRA documentation standards — grounded in the Excise Tax Act and provincial legislation.
Input Tax Credit Eligibility: The Complete Guide
Who can claim ITCs, what qualifies, and the common mistakes that cost businesses thousands
Under ETA Section 169, a registrant can claim an ITC for GST/HST paid on property or services acquired for use in commercial activities. But the devil is in the details — eligibility depends on registration status, use thresholds, and timing rules that trip up even experienced accountants.
HST Overpayment: When the Wrong Province's Rate Gets Charged
The most common GST/HST error — and the easiest to recover from
HST rates vary from 13% in Ontario to 15% in Nova Scotia and the Maritimes. When a vendor charges the wrong province's rate, you overpay on every invoice. Across thousands of AP transactions, this adds up fast.
Place of Supply Rules: Which Province's Tax Rate Applies?
The rules that determine whether you pay 5% or 15% — and why vendors get it wrong
Place of supply rules determine which province's tax rate applies to a transaction. For goods, it's usually the delivery destination. For services, it depends on the type of service and where the customer is located. Getting this wrong means over- or under-collecting tax.
BC PST for Contractors: Real Property vs. Tangible Personal Property
Why BC PST on construction labour is almost always wrong
In BC, PST applies to tangible personal property but generally NOT to labour on real property improvements. Contractors frequently misclassify, charging 7% PST on the full invoice including labour. This creates significant recovery opportunities.
PST/QST Exemptions for Manufacturing Equipment
Machinery used directly in manufacturing is exempt — but the definition of 'directly' is narrow
BC, Saskatchewan, Manitoba, and Quebec all provide PST/QST exemptions for machinery and equipment used directly in manufacturing. But 'directly' has a specific legal meaning, and many manufacturers miss legitimate exemptions or claim ones they shouldn't.
CRA GST/HST Audit: What to Expect and How to Prepare
From the initial contact letter to the final assessment — a practical guide
A CRA audit of your GST/HST returns can be triggered by filing patterns, industry risk profiles, or random selection. Understanding the process helps you prepare documentation, respond efficiently, and protect your ITC claims.
GST/HST and the Digital Economy: The Simplified Registration Trap
Why ITCs on AWS, Azure, and Salesforce invoices may be non-recoverable
Since July 2021, non-resident digital vendors can register under Canada's simplified GST/HST framework. Tax collected under this regime cannot be claimed as an ITC — creating a hidden cost for businesses using foreign SaaS and cloud platforms.
ITC Recovery for Data Centres and AI Infrastructure
Capital property apportionment, operating expenses, and import documentation for GPU clusters
Data centres face unique GST/HST challenges: the all-or-nothing capital property test, proportional operating expense apportionment, and CARM import documentation for hardware. Getting these right can mean six-figure ITC recoveries.
How to verify your tax SaaS vendor is registered in every country you file in
A diligence checklist for CFOs, controllers, and accounting firms
Your tax SaaS vendor signs off on returns in every country where you file. Here is how to verify they are actually licensed to do so — in Germany, Australia, France, Japan, Korea, New York, and six other jurisdictions — in under fifteen minutes.
Input Tax Credit Recovery: How to Reclaim the GST/HST Hiding in Your AP Ledger
A tax-mechanics-first look at why every Canadian business is sitting on recoverable dollars — and how to get them back
Most Canadian business owners are surprised to learn there is a small pile of cash sitting inside their own accounting system. Not theoretical money — actual dollars already paid out to suppliers, contractors, and vendors that are legally recoverable from the CRA.
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