Can I claim HST paid on business purchases?

Yes—if your business is GST/HST registered, you can usually claim the HST paid on business purchases as an Input Tax Credit (ITC).

You can claim it when:

• the purchase is for your business, not personal use
• you have proper receipts/invoices
• you’re registered for GST/HST with the CRA

Important limits:

• If an expense is partly personal, claim only the business portion.
• Meals and entertainment are usually limited to 50% of the HST.
• Keep records in case the CRA asks.

You claim ITCs on your GST/HST return by subtracting the tax you paid from the tax you collected. If your ITCs are more than the HST you collected, you may get a refund.