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.

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

commercial rents
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 supplies (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 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:

real property, such as land or a building
personal property such as equipment or machinery that you use in your business
photocopiers, computers, and cash registers
furniture and appliances used to furnish places such as offices, lobbies, and hotel rooms
free-standing refrigerators, ovens, and other large appliances. Built-in appliances are fixtures that are usually considered to be part of real property.

Capital property for GST/HST purposes does not include property described for income tax purposes in:

class 12 (such as chinaware, cutlery, and certain tableware)
class 14 (certain patents, franchises, concessions, or licences for a limited period)
class 14.1 (goodwill of a business)
class 44 (a patent or a right to use patented information for a limited or unlimited period)

2016-09-15