TaxTips.ca
Canadian Tax and
Financial Information
Is GST Tax Deductible?

Ads keep this website free for you.
TaxTips.ca does not research or endorse any product or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Looking for US tax information?
See
USTaxTips.net

Need an accounting, tax or financial advisor? Look in our Directory.      Stay Connected with TaxTips.ca!

Home
What's New
Calculators
Personal Tax
Business
Sales Taxes
Free in 30!
Financial Planning
RRSP RRIF TFSA
Real Estate
Stocks Bonds etc.
Seniors
Disabilities
Canada
Alberta
British Columbia
Manitoba
Ontario
Quebec
Saskatchewan
Atlantic Provinces
Territories
Federal Budget
Provincial Budgets
Statistics etc.
Glossary
Site Map
Directory
Advertise With Us
Contact Us/About Us
Links & Resources



Sales Taxes  ->  GST/HST -> Are GST/HST costs tax deductible?

Not Registered to Collect GST/HST - are GST/HST Costs Tax Deductible?

If your business is not registered to collect GST, then you will not be able to claim any input tax credits to get a refund of the GST or HST you pay.  However, you can deduct the GST/HST for income tax purposes, as part of the cost of the item you have purchased.

For income tax purposes, the cost of an item will include the purchase price + GST or HST + provincial retail sales tax (where applicable).

When the item you have purchased is a fixed asset such as an automobile, then the cost including taxes is the amount to record as the cost of that item.  You will able to claim capital cost allowance on this amount.  

If the item purchased is an expense, then the cost including taxes will be recorded as the expense.

Revised: September 19, 2017

 

Copyright © 2002 - 2017 Boat Harbour Investments Ltd. All Rights Reserved  See Reproduction of information from TaxTips.ca

Facebook  | Twitter  |  Google + |  Monthly Newsletter Sign-up  What’s New E-mail Notification RSS News Feed
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. 
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.