Find the GST/HST you can claim back.
If you are a Canadian self-employed GST/HST registrant, a quarter of receipts holds input tax credits that are easy to miss. Walk this plain-English checklist before the July 31 quarterly deadline and build a list of what to look for in your own receipts.
What is an input tax credit?
When you are a registered GST/HST registrant, you charge GST/HST on what you sell and you can recover the GST/HST you paid on what you bought for the business. That recovery is the input tax credit. You claim your ITCs on your GST/HST return, and they reduce the net tax you send to the CRA.
The catch is documentation. The CRA requires the GST/HST to be shown on the receipt or invoice, and you can only claim the share that relates to business use. A mixed-use phone bill, for example, is claimable only for the business portion.
First, are you a registrant?
You can only claim ITCs if you are registered for GST/HST. Registration becomes mandatory once your total taxable revenue (including any associates) passes the small-supplier threshold of $30,000 in a single calendar quarter or over the previous four consecutive quarters. Below that, registering is optional, and registering voluntarily is what lets you start claiming ITCs.
Your income is reportable on form T2125 no matter how small. The $30,000 figure is a GST/HST registration trigger, not an income-tax exemption.
If you file GST/HST quarterly, the April 1 to June 30 period is due by July 31. No rush needed: this is a calm checklist to run through a quarter of receipts and catch the ITCs that tend to get missed before you file.
Where ITCs usually hide
Tap a card to add it to your Q2 checklistYour Q2 ITC checklist
Tap the categories above that apply to your business. Your selected list shows up here, ready to copy and bring to a session with your receipts.
General guidance, not tax advice. The CRA requires the GST/HST to be shown on the receipt or invoice, and you can claim only the share tied to business use. Confirm your situation with your accountant or the CRA.
Stop the ITCs getting buried
scan-ai reads every line on a receipt and captures the GST/HST shown on it, then maps each line to its T2125 category. So the tax you can recover is recorded next to the purchase instead of hiding in a shoebox. Forward an email receipt or snap a photo and it lands sorted.
Start free, no credit cardInput tax credits, plainly.
What is a GST/HST input tax credit?
An input tax credit (ITC) lets a registered business recover the GST/HST it paid on eligible business purchases by claiming it against the GST/HST it collected. The practical effect is that you get the sales tax back on legitimate business expenses. This tool flags the everyday expense categories where ITCs are most often missed.
Who can claim input tax credits?
Generally you must be registered for GST/HST to claim ITCs. Below the $30,000 small-supplier threshold registration is optional; once you register, you charge GST/HST on your sales and can claim ITCs on eligible business purchases. You can only claim the business-use portion, not personal use.
When is the GST/HST return due?
It depends on the reporting period the CRA assigns you: annual, quarterly, or monthly. Many small businesses file quarterly, with the return and any balance due one month after the quarter ends (for example, July 31 for a quarter ending June 30). Confirm your own reporting period and deadline with the CRA.
What records do I need to claim an ITC?
You need supporting receipts or invoices that show the supplier, the date, the amount, and the GST/HST charged, plus the supplier's GST/HST number once a purchase passes the CRA documentation thresholds. Keep the actual receipt, not just a bank-statement line. scan-ai captures the GST/HST shown on each receipt and records it next to the purchase.
Is this tax advice?
No. This is general guidance to help you spot credits worth checking. Eligibility and amounts depend on your specific situation, so confirm with your accountant or the CRA before you file.
General guidance, not tax advice. Eligibility depends on your situation; confirm with your accountant or the CRA.