GST/HST Input Tax Credit Invoice Requirements: What It Must Show

What must an invoice show to claim a GST/HST input tax credit (ITC)?

A GST/HST registrant may not claim an input tax credit unless, before filing the return that claims it, it holds sufficient evidence of the purchase, including the information the regulations prescribe (Excise Tax Act, section 169(4)). The prescribed detail grows with the total paid or payable on the document (regulations, section 3; CRA: input tax credits). The rule is the same for a sole proprietor, a partnership and a corporation that is registered.

The tier follows the total on the document, so one invoice covering several purchases is measured by its combined total. Neither the regulation nor the CRA's page says whether that total counts the tax, so a document near a line is safest with the higher tier's details. The listed details are a floor: the Act's test is that the evidence lets the amount of the credit be worked out.

What makes a case not simple:

• The supplier is not registered, so there is no number to show and usually no GST/HST charged.
• A supplier or subcontractor will not give a complete invoice, or has not answered, and the return is due.
• The only paper is a card statement, or a till slip with no tax shown.
• Credits already claimed rest on incomplete paper. The Act's rule is that the evidence is held before the return is filed, so whether those credits hold up is a judgment call: see the last section.
• The supplier is outside Canada, or the tax is Quebec's QST. For foreign suppliers see invoices from foreign suppliers and contractors. This page states no QST rule.

Gather: invoices sorted by supplier, each supplier's number with the date you checked it, and the invoice date, total and tax shown on each.

Does the invoice need the supplier's GST/HST number, and from what amount?

Yes, once the total on the document reaches $100. Below that, the regulation asks only for the supplier's name, the date and the total (regulations, section 3).

The number is the GST/HST registration number assigned to the supplier, or to the intermediary in respect of the supply (a registrant that, as the supplier's agent or under an agreement with it, causes or facilitates the sale). A document of $500 or more needs the number too, because the top tier includes the lower ones.

Below $100 the regulation does not ask for the number, but the CRA says credits should include only GST/HST charged by a registered supplier (CRA: input tax credits). A receipt that shows no tax and does not identify a registered supplier may not let the credit amount be worked out.

If the invoice shows GST/HST and a provincial sales tax as one combined figure, the regulation accepts that only on set conditions, including a statement that the total includes the GST/HST. A supplier that shows the GST/HST amount separately avoids the question.

How do I check that a supplier's GST/HST number is real, and keep proof?

A number printed on an invoice does not prove registration. The CRA's GST/HST Registry is a free service to confirm that the business charging you GST/HST is registered, so that your credits include only tax charged by registered suppliers (CRA: confirm a GST/HST account number).

1. Take three things from the invoice: the first nine digits of the GST/HST number, the supplier's legal, operating or trading name, and the transaction date (the date on the receipt, invoice or contract).
2. Run the search in the Registry.
3. Print the Search Details screen and keep it with the invoice. The CRA tells you to print it so you claim credits only for tax charged by registered suppliers.

If the invoice shows no number, the CRA says to contact the supplier, and to call its Business enquiries line if the supplier does not give it. If a search returns no results under the name on the invoice, the CRA says to contact the business owner for the exact name it gave the CRA. The Registry page says no more about a failed search; until the supplier is confirmed as registered, that credit is unconfirmed. A QST number is confirmed through Revenu Québec, not the CRA Registry.

What if the invoice is missing a detail or the number: can I claim first and fix it later?

No, as a rule. A registrant may not claim the credit unless it holds the evidence before it files the return claiming it (section 169(4)). Narrow exceptions exist: section 169(5) lets the Minister exempt registrants from a requirement on terms, and section 225(3), below, covers a credit already claimed without the evidence. Under section 169(5), the CRA's policy memorandum says it generally exempts a registrant whose computerized books capture the details in the computerized-records row below, with the tax status and rate of each supply, when the paper cannot be had before filing or lacks a prescribed detail (GST/HST Memorandum 8.4). That memorandum is an older publication, not law, and its list includes the supplier's number, so a missing number is not covered. Otherwise the CRA's guidance does not describe adding a missing detail after filing, so a gap before filing is a reason to hold that credit back.

A held-back credit can be claimed on a later return while the claim window is open (section 225(1)). Most registrants have four years (section 225(4)). A corrected invoice that arrives later can support a claim within that window. If the window closes first, the Act generally does not allow the claim.

If a return already claimed credits on incomplete paper, the evidence was not in hand when it was filed. Section 225(3) lets that amount be claimed again on a later return when the only reason it was not allowed is the missing section 169(4) evidence, still within the claim window above. If the CRA has not already disallowed it, you must report the error to the CRA in writing at or before the later return is filed, and must also pay the amount and any interest by then unless you report it at least three months before the CRA's time to assess the earlier period expires (section 225(3)). For how to report it, see correcting a filed GST/HST return; if the CRA has written, see GST/HST reviews and audits.

What should I ask the other business for to support the claim?

Ask for a corrected or complete invoice, not a verbal confirmation. A supplier that makes a taxable supply must give you, on request and right away, the written details you need to support the credit (section 223(2)). Failing to provide required information can bring a penalty of $100 for every failure (section 284). Ask in writing and keep a copy. The invoice should carry:

• Their GST/HST number, under the same name you search in the Registry.
• The GST/HST amount, or a statement that the total includes it.
• The invoice date and the total.
• At $500 or more, your business's name, a description of what you bought and the payment terms.

If they say they are not registered, there is no number to ask for: see the next section.

My subcontractor isn't charging GST/HST yet: do I get any credit?

Only if tax was payable. An input tax credit is for tax that becomes payable by you or that you pay (section 169(1)). No tax is payable on the supplies of a small supplier that is not registered, apart from some sales of real property (section 166), so its invoice gives you nothing to claim.

Two situations look alike on the invoice:

• The subcontractor is a small supplier. A business whose taxable sales stay within the $30,000 small-supplier limit, tested over four consecutive calendar quarters and in any single quarter, is not required to register (section 240(1); CRA: when to register). Unless it registered voluntarily, it has no number to show, and a Registry search cannot confirm one it does not have.
• The subcontractor should have registered. A supplier that passes the limit has to register and start charging. If it later bills you tax for earlier work, the credit still needs an invoice that meets the tiers above, and for most registrants the claim window of four years runs from the period the credit relates to, not the date of the late invoice. Section 225(4)(c) adds a later date where the supplier did not charge the tax within that window, tells you in writing that the CRA assessed it for the tax, and you then pay it (section 225(4)). How that applies to a particular job is a judgment call.

Payments to subcontractors may also need T4A or T5018 slips: see reporting payments to subcontractors. Whether a supplier must register is covered in when to register for GST/HST.

What more does a large bill need: my name, a description, payment terms?

At $500 or more, the document needs three things on top of everything in the lower tiers (regulations, section 3):

• The buyer's name. Your name, the name your business trades under, or the name of your authorized agent or representative. The credit belongs to the person who acquires the property or service (section 169(1)), so an invoice made out to someone else raises the question of who the buyer is. See business expenses paid personally.
• A description of each supply sufficient to identify it. "Supplies" is thin; "10 sheets of plywood" identifies the purchase.
• The terms of payment, such as due on receipt or net 30. The regulation does not define the phrase.

Are there lighter rules for taxi and ride-share fares, procurement cards and computerized books?

Yes, in set cases, and each has its own list of what the records must show (CRA: input tax credits).

A software entry stands in for the invoice on the conditions given above under missing details. The same page also lists reduced records for contractual agreements, for allowances or reimbursements to an employee or partner, and for cash paid into coin- or bill-operated machines; see it for those lists. Taxi and commercial ride-share drivers must register for GST/HST even if they are small suppliers (CRA: when to register).

The regulation also names the forms that can carry the prescribed information: an invoice, a receipt, a credit-card receipt, a debit note, a book or ledger of account, a written contract or agreement, a computerized record, or another document validly issued by a registrant.

Is a bank or card statement enough on its own?

No, not on its own. A statement shows that you paid. It does not usually show the supplier's registration number or the tax charged, and the regulation requires both on the document from $100 up (regulations, section 3).

The CRA's policy memorandum says a monthly credit-card statement does not by itself support a credit and must be backed by another document, such as a card receipt or an invoice (Memorandum 8.4). It is an older publication, not law, but the regulation points the same way: the test is whether the document carries the prescribed information and lets the credit amount be worked out (section 169(4)). The card-data exception on the CRA's input tax credit page is for procurement cards, under its stated conditions.

A card slip or till receipt is different: the regulation lists a receipt and a credit-card receipt as supporting documentation, and either works if it carries the details for its tier (regulations, section 2). One with no supplier number or tax at $100 or more falls short.

Use the statement to find what you paid and when, then ask the supplier for the invoice. For an expense with no receipt at all, see business expenses without receipts. For income tax proof, see CRA receipt requirements.

How long do I keep the documents, and how far back can I claim a credit I missed?

Usually, keep GST/HST records, including purchase invoices, for 6 years from the end of the year they relate to. To destroy them sooner you must send a written request to the tax services office and wait for approval. The CRA may ask you to keep invoices longer (CRA: GST/HST records to keep).

You do not send receipts when you file electronically, but you must hold them (same page). Scans are covered in scanned receipts for the CRA and the retention clock in how long to keep business records.

For a missed credit, most registrants have four years: the claim must be on a return filed by the due date for the last reporting period that ends within that time after the period the credit relates to. Listed financial institutions and some very large businesses have two years instead, counted from the end of the fiscal year that includes the period, with exceptions (section 225(4) and (4.1)). After the window closes the Act generally does not allow the claim, with narrow exceptions such as section 225(4)(c), described above. Filing steps are in filing GST/HST and input tax credits.

Example

These examples are illustrative. All figures are in Canadian dollars.

Ontario receipt missing the number

An Ontario HST registrant gets a receipt for supplies with a total, HST included, of C$450. The receipt shows the seller's name, the date and the total only. At C$100 to under C$500 the document also needs the seller's registration number and either the HST amount or a statement, with the rate, that the total includes HST. The buyer holds that credit until a corrected receipt arrives, checks the number in the Registry, and claims on the return being filed if the receipt comes in time, or on a later return if not.

Alberta subcontractor with no GST

An Alberta renovator pays a subcontractor C$4,000, and the invoice shows no GST. The subcontractor may be a small supplier that has not registered. If so, no tax was payable on the work, so there is no credit to claim. If it was required to register, whether any credit exists is a separate question. A Registry search on any number the subcontractor gives shows whether it is registered.

Calgary equipment invoice

A Calgary shop buys C$650 of equipment. At C$500 or more the invoice needs everything in the lower tiers: the seller's name, date, total, GST amount and GST number. It also needs the shop's own name as buyer, a description of the item and the payment terms.

Different for you?

• A supplier or subcontractor will not give a complete invoice, or credits you already claimed rest on thin paper: which past credits hold up, which need corrected invoices and which the paper cannot support depends on the invoices themselves and needs a professional's read: bookkeeping help. For credits already filed, see correcting a filed GST/HST return.
• The CRA has written asking for invoices: see GST/HST reviews and audits. A reply rests on invoices that meet the tiers above, so if the paper is thin, see bookkeeping help as well.
• Several years of invoices are missing or the books do not tie to the returns: see catching up on overdue books and bookkeeping help.
• A subcontractor may have passed the small-supplier limit without registering: read when to register for GST/HST.
• You paid GST/HST before you were registered: see claiming GST/HST paid before registering.
• You use the Quick Method: credits are allowed only on real property, capital assets such as computers and vehicles, and a few narrow cases, so these invoice rules matter mainly for those purchases (CRA: RC4058). See the GST/HST Quick Method.
• You want to know which purchases earn a full, partial or no credit: see expenses with no or partial credit.
• The invoice is from a supplier outside Canada, or the tax is Quebec's QST: foreign invoices are in invoices from foreign suppliers and contractors. QST proof rules are set by Revenu Québec and are not covered here. In Quebec, Revenu Québec generally administers the GST/HST too, and a business located there files with it (CRA: RC4022); the Act and regulation above still set the documents.