Calculate input tax credits - Types of purchases and expenses

Determine the types of purchases and expenses

The amount you can recover for any expense depends if it is considered an operating expense or a capital expense. 

Operating expenses for which you may be eligible to claim ITCs

  • commercial rent
  • equipment rentals
  • advertising (for example, ads, business cards, or flyers)
  • legal, accounting, and other professional fees
  • delivery, freight, and express fees
  • home office expenses (restrictions apply, see Line 9945 - Business-use-of-home expenses)
  • motor vehicle expenses (restrictions apply, see Motor vehicle expenses)
  • maintenance and repairs
  • telephone and utilities
  • office expenses (such as postage, computer disks, paper, and pens)
  • merchandise and inventory
  • travel such as hotel, airfare, rail fare, or car rental (except expenses for meals and entertainment related to travel)
  • convention fees (restrictions apply, see GST/HST memorandum 8-2 General Restrictions and Limitations)

Capital expenses for which you may be eligible to claim ITCs

Capital property, for GST/HST purposes, is based on the meaning of the term for income tax purposes and includes:

  • depreciable property (property that is eligible for capital cost allowance for income tax purposes)
  • other property that would result in a capital gain or capital loss for income tax purposes if you disposed of it

Examples of capital expenses for which you may be eligible to claim an ITC are:

  • photocopiers, computers, and cash registers
  • machinery and vehicles
  • furniture and appliances
  • musical instruments (only if you are an individual who is a GST/HST registrant and you use it for employment purposes or in a business carried on by a partnership of which you are a member)
  • improvements to capital personal property (only if you are using the property primarily (50%) in your commercial activity

Capital property for GST/HST purposes does not include property described for income tax purposes that are categorized in the following

  • class 12 (such as chinaware, cutlery, and certain tableware)
  • class 14 (certain patents, franchises, concessions, or licences for a limited period)
  • proposed class 14.1(eligible capital property)
  • class 44 (a patent or a right to use patented information for a limited or unlimited period)
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