Claiming GST/HST Back on Business Travel Expenses
Maximise your input tax credits on flights, hotels, meals and more—while staying CRA-compliant.
Every business trip feels like you’re handing over GST/HST with no guarantee of recovery Miss a step in your claim and you could leave hundreds (or thousands) of dollars on the table. Follow this 5-step playbook to secure every dollar of travel-related ITCs in 2025
1.
Understand Input Tax Credits (ITCs) Basics
An Input Tax Credit (ITC) lets your GST/HST-registered business recover the tax paid on inputs used in your commercial activities
You can claim an ITC for the full GST/HST on travel-related goods and services provided they’re for business use
Pro tip: Only expenses tied directly to your commercial operations qualify personal detours won’t cut it
Want to deepen your tax setup? Create an integrated GST/HST sales-tax system—leverage these six metrics!
2. Transport Expenses: 100% Recoverable
Airfares, train tickets, car rentals, fuel, and taxis all attract GST/HST
You're free to claim 100% of the tax paid as an ITC no proration needed.
Visual suggestion: insert a screenshot of a sample car-rental invoice with the HST breakdown.
To avoid errors when dealing with international bookings, compare duty-free vs taxable VAT/HST for global shipments find your best scenario!
3. Accommodation Costs: Know the Rules
Hotels, B&Bs, or short-term rentals are fully taxable, so you can claim 100% of the GST/HST you pay.
Keep itemized invoices showing the per-night tax to satisfy CRA auditors generic “lodging” descriptions won’t suffice.
4.
Meals
& Entertainment: The 50% Limitation
CRA rules cap your ITC claims on meals, beverages, and entertainment at 50% of the GST/HST paid.
Example: If your team dinner carries $30 HST, you can only claim $15 as an ITC.
Loss aversion note: Forgetting this rule can trigger CRA adjustments and interest on the difference.
Need clarity on tax policy for exclusive events? Stay current on HMRC’s private-school VAT clarifications download the update!
5. Filing Your Claim: Documentation & Deadlines
Collect detailed receipts: Date, supplier, GST/HST registration number, amount of tax paid
Allocate correctly: Separate fully recoverable items (travel, lodging) from 50%-recoverable ones (meals).
Record reimbursements paid to employees these qualify if you paid the GST/HST and then reimbursed them.
Include ITCs on your GST/HST return for the reporting period in which the expense was incurred
Retain records for six years—CRA may request documentation at any time.
Planning your next quarter’s compliance? Prep your startup for July 2025 VAT changes know what you must do now!