Requirements rise with the amount
The CRA sets three tiers based on the total amount paid or payable. Each tier includes everything required by the tier below it, so the obligations accumulate rather than replace one another.
- Under $30: the supplier's name or trading name, the date of the invoice, and the total amount paid or payable
- $30 to $149.99: the above, plus the supplier's GST/HST registration number and either the amount of GST/HST charged or a statement that the total includes it along with the applicable rate
- $150 or more: the above, plus the recipient's name or trading name, the terms of payment, and a description sufficient to identify the goods or services supplied
The registration number is the usual failure
At thirty dollars and above, the supplier's GST/HST registration number is mandatory. A great many small receipts do not print it, and that gap is the single most common reason an otherwise valid credit is disallowed.
If a supplier's receipt is missing the number, it can usually be obtained and recorded against that supplier once, then applied to their receipts going forward. A vendor rule or supplier record is the right place for it, so nobody re-solves the problem monthly.
The number can be checked against the CRA's GST/HST Registry, which is worth doing for significant new suppliers. A registration number that is not valid does not support a credit.
How long you have to claim
Most registrants have four years to claim an input tax credit, measured from the due date of the return for the period in which the credit could first have been claimed. Large businesses above the prescribed threshold and listed financial institutions generally have two years instead.
Four years sounds generous and disappears quickly on a file that changes hands. The practical control is a running list of transactions parked for missing documentation, reviewed at each close rather than at year end.
Where the rules differ from the ordinary case
Meals and entertainment are generally limited to fifty percent for input tax credit purposes, matching the income tax treatment, with limited exceptions.
Passenger vehicles and aircraft with mixed personal and business use have their own rules, and capital property is treated differently from operating expenses. Where a purchase is partly personal, the credit follows the business-use portion, which is why a defensible percentage recorded at the time matters more than a round number chosen later.
Quebec adds a separate layer. QST is administered by Revenu Quebec with its own registration and input tax refund regime. Veridbooks applies GST 5% + QST 9.975% on Quebec files for draft assist; staff still verify documents and claim eligibility before filing.
What this means for a firm's process
The requirements are per document, so compliance is decided at intake rather than at filing. A ledger line that carries its source document, the supplier's registration number, the tax component as a separate field, and the business-use percentage is defensible. One that carries only a total is not, whatever produced it.
This is also the argument against blending tax into the gross amount. Once the components are merged, reconstructing a supportable credit total means reopening the documents, which is the work you were trying to avoid.
Common questions
- Can a credit card statement support an input tax credit?
- Generally not on its own. A statement shows a payment, not the information the regulations require, in particular the supplier's registration number and the tax charged. Keep the receipt or invoice.
- What if a receipt is lost?
- Ask the supplier for a duplicate. Documentation is a condition of the claim, so a credit without supporting records is exposed on review.
- Do digital copies count?
- The CRA accepts electronic records that are readable and retained for the required period. Scans and photographs are acceptable provided they are legible and complete.
This article is general information for bookkeeping professionals, not tax advice. Confirm current rules with the Canada Revenue Agency or a licensed practitioner before you rely on them for a client file.