Input Tax Credits are the amount that your business paid, or the allowable portion of the GST you paid. They allow you to recover GST you paid out on business purchases or expenses. You must be registered for the GST to use Input Tax Credits. Once you have done this you need to start keeping track of the GST you have paid and enter it into your bookkeeping system. As with all expenses you need to keep all your receipts to support your claims.
What qualifies as Input Tax Credit?
Some of the expenses that you can claim as Input Tax Credits include:
These capital expenses also qualify:
You can only claim Input Tax Credits for anything related to your business not for personal expenses. The purchase or expense must also be what the CRA deems reasonable in nature as well as cost. You cannot claim Input Tax Credits on:
For more information a full list is available on the CRA website
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