RECEIPT
Guide
Guide
Input tax credits: how Ontario businesses claim back HST
If your business pays HST on expenses, you can usually get that money back. Here's how it works, in plain language.
What is an input tax credit?
When your business is registered for GST/HST, you can claim back the GST/HST you pay on business purchases and expenses. These claims are called input tax credits (ITCs). In Ontario, where HST is 13%, every $100 of HST you pay on a business expense is $100 you can recover — so tracking it matters.
What can you claim?
You can generally claim ITCs for GST/HST paid on goods and services you buy to use in your business — things like supplies, equipment, software, rent and professional fees. The expense must be for business use, and you must be a GST/HST registrant.
The records you need to keep
To support an ITC claim, the CRA expects you to keep the original invoices and receipts showing the GST/HST paid, the supplier, and the date. Keep them for at least six years. Missing paperwork is the most common reason ITC claims are reduced or denied.
How to claim them
You claim ITCs on your regular GST/HST return — the same return where you report the HST you collected from customers. The ITCs reduce what you owe. Add up the GST/HST paid on your business expenses for the reporting period and enter the total on the ITC line of your return.
The easy way to stay on top of it
Instead of a shoebox of receipts, scan each invoice with HST Helper as you get it. The GST/HST amount is captured automatically and stored with the original invoice, and at month end you get a summary with the total — exactly what you need for the ITC line of your return.