Free guides for Canadian small businesses on CRA receipt requirements, GST/HST Input Tax Credits, expense categories, and how to stay audit-ready.
An Input Tax Credit (ITC) lets a GST/HST-registered business recover the GST/HST it paid on business purchases. You claim it on your GST/HST return, and you need the supporting documents to back each claim. That is why most of these guides come back to the same point: the receipt is the evidence.
If you are worried about an audit, start with What Receipts Do You Need to Keep for CRA?, then read How Long Do You Need to Keep Business Receipts in Canada? for the retention rules.
If you file GST/HST returns, read How to Track GST/HST Input Tax Credits and No Receipt, No ITC to see how missing documents turn into denied credits.
If you are sorting expenses for year end, use the expense categories guide and the expense report template.
If you want to see receipt capture in practice, read the receipt capture guide, how Nabbit works, or the pages for QuickBooks users and contractors.
If you are comparing tools, see Nabbit vs. Dext, Nabbit vs. Expensify, and Nabbit vs. Hubdoc.
CRA expects you to hold documents that support every expense and every credit you claim, and to keep them for six years. Thermal paper receipts fade well before then, and a faded receipt is often the same as no receipt. Capturing a digital copy on the day you pay is the simplest way to protect both the deduction and the ITC.
They answer three different questions about the same purchase. The receipt proves the purchase happened. The expense category decides how the cost appears on your income tax return and whether you can deduct all of it or only part, as with the 50% limit on meals and entertainment. The Input Tax Credit decides whether you can recover the GST/HST you paid. A single missing receipt can put all three at risk, which is why the guides above treat receipt capture as the first step rather than an afterthought.
The guides are written by the Nabbit Team and cite CRA publications so you can check each rule at the source. Each page shows when it was last updated. They are general information, not tax advice, so confirm anything that depends on your situation with your accountant.
Nabbit captures receipts, reads GST/HST automatically, and syncs to QuickBooks Online Canada. 14-day free trial.
Start Free Trial →The rules on this page come from these Canada Revenue Agency publications. Check them for the current wording, because CRA updates its guidance.