GST/HST Input Tax Credits: Records Toronto Small Businesses Need to Keep

Short answer

To claim GST/HST input tax credits, keep an invoice or receipt for each business purchase showing the supplier’s name, the date and the total. From $100, it must also show the GST/HST and the supplier’s registration number. From $500, add your name, a description and payment terms. (Source: CRA – Input tax credits) Keep these records for six years. (Source: CRA – RC4022 General Information for GST/HST Registrants)

Conditions for claiming an input tax credit

Input tax credits (ITCs) let a GST/HST registrant recover the GST/HST paid or payable on purchases and expenses related to its commercial activities. The CRA lists these conditions (Source: CRA – Input tax credits):

• the property or service was acquired for use in your commercial activities
• you were a GST/HST registrant during the reporting period
• GST/HST was paid or became payable on the purchase
• you have sufficient documentary evidence before you claim
• you claim within the time limit

This article is about the documentary evidence. For which purchases usually qualify, and restrictions such as meals and entertainment, see our GST/HST filing guide.

What your invoice must show, by purchase amount

The CRA ties the required information to the amount of the purchase. (Source: CRA – Input tax credits) Each level includes everything from the level before it.

What this means in practice

For a small purchase, such as a box of office supplies, a basic receipt may be enough. For larger purchases, such as equipment, software subscriptions or contractor invoices, check that the supplier’s registration number is printed and that your business name appears once the total reaches $500. It is easier to ask a supplier for a corrected invoice at the time than months later.

A bank or credit card statement alone usually does not show the supplier’s registration number or the GST/HST charged. Keep the supplier’s invoice or receipt.

How long you have to claim

For most registrants, the CRA says ITCs must be claimed by the due date of the return for the last reporting period that ends within four years after the end of the reporting period in which the ITC could first have been claimed. (Source: CRA – Input tax credits)

A shorter two-year limit applies to listed financial institutions and to certain businesses with annual taxable supplies above $6 million, with some exceptions. (Source: CRA – Input tax credits) Most small businesses fall under the four-year rule. Claiming a missed ITC still requires the same documentation.

How long and where to keep ITC records

• Six years: the CRA’s GST/HST registrant guide says to keep records for six years from the end of the year they relate to. (Source: CRA – RC4022 General Information for GST/HST Registrants)
• In Canada: keep records at your place of business or residence in Canada, unless the CRA gives permission otherwise. (Source: CRA – Where to keep your records and for how long)
• Electronic invoices: if a supplier sends a PDF or online invoice, keep it in an electronically readable format, even if you also print it. (Source: CRA – Acceptable formats and imaging paper documents)
• Scanned paper: the CRA sets conditions for imaging paper documents before destroying originals. (Source: CRA – Acceptable formats and imaging paper documents)

Situations with their own rules

The CRA notes special documentation rules for some situations, including allowances paid to employees, computerized records, written contracts, vending machines, procurement cards and ride-sharing fares. (Source: CRA – Input tax credits) If any of these apply to your business, read the CRA’s input tax credits page for the rules on each, or ask your tax preparer before relying on your usual receipt process.

Organizing ITC records each month

ITC support is easiest to manage when it is checked as purchases happen, rather than at filing time.

1. Collect every purchase invoice or receipt for the period, both paper and electronic.
2. Sort by amount level: under $100, $100 to $499.99, and $500 or more.
3. For each document at $100 or more, confirm the supplier’s registration number and GST/HST are shown.
4. For each document at $500 or more, confirm your business name, a description and payment terms.
5. Request corrected invoices for anything missing.
6. Record each purchase with its reference number, so every ITC traces back to a document.
7. File the documents by reporting period, and keep them for six years.

If you send records to us for review: Do not email banking credentials or passwords. For SINs, employee tax information, and full tax slips, contact us first for instructions on the safest way to send documents.

ITC records checklist

• An invoice or receipt for every purchase on which you plan to claim an ITC
• Supplier name, date and total on every document
• GST/HST shown and supplier registration number on every document of $100 or more
• Taxable and non-taxable items identified on mixed invoices
• Your business name, a description and payment terms on every document of $500 or more
• Documentation in hand before the ITC is claimed
• Each ITC traceable to a document reference
• Any missed ITCs noted and checked against the four-year limit
• Records stored in Canada, electronic files kept readable, all kept for six years

Free downloadable template

The GST/HST Records and Input Tax Credit Tracker is an Excel worksheet for one reporting period. Record each business purchase with its date, supplier, description, amount before tax, GST/HST paid and receipt or invoice reference, alongside your sales and GST/HST collected. It totals potential ITCs and gives an estimated net figure to review with your tax preparer. Use the Supplier GST/HST Registration Number column to record each supplier’s GST/HST registration number where applicable.

Download the GST/HST Records and Input Tax Credit Tracker (XLSX). No email address required.

This template helps organize records. It does not determine eligibility, deductions, tax owing, or filing requirements.

Frequently asked questions

Is a credit card slip enough to claim an ITC?

It depends on the amount and what the slip shows. Compare the document with the CRA requirements for that purchase amount. Card slips often lack the supplier’s registration number and the GST/HST charged.

Can I claim an ITC now and get the invoice later?

The CRA’s conditions say you need sufficient documentary evidence before you claim. (Source: CRA – Input tax credits) Get the invoice first.

I found an old purchase I forgot to claim. Is it too late?

For most small businesses, the CRA allows ITCs to be claimed within four years, measured as described above. (Source: CRA – Input tax credits) You still need the required documentation.

How long do I keep ITC records?

Six years from the end of the year they relate to, based on the CRA’s GST/HST registrant guide. (Source: CRA – RC4022 General Information for GST/HST Registrants) Keep them in Canada.

Can I claim ITCs on purchases made before I registered?

The general condition is that you were a registrant during the reporting period. (Source: CRA – Input tax credits) The CRA has separate guidance for new registrants, so review it or ask your preparer about purchases made before your registration date.

Official sources

• Canada Revenue Agency, Input tax credits: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/calculate-prepare-report/input-tax-credit.html
• Canada Revenue Agency, RC4022 General Information for GST/HST Registrants: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4022/general-information-gst-hst-registrants.html
• Canada Revenue Agency, Where to keep your records, for how long and how to request permission to destroy them early: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/keeping-records/where-keep-your-records-long-request-permission-destroy-them-early.html
• Canada Revenue Agency, Acceptable format, imaging paper documents and backing up electronic files: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/keeping-records/acceptable-format-imaging-paper-documents-backing-electronic-files.html