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Ontario

Ontario HST on business expenses, read line by line

Smartbills keeps the HST and supplier details with every business receipt. Your team can review the records behind each input tax credit instead of reconstructing them at filing time.

The CN Tower and the Toronto skyline at night

Smartbills takes the HST from each receipt line, zero-rated and 5% items included, and keeps the supplier's HST number with it.

HST read from the receipt, line by line

On an Ontario receipt some lines carry 13%, some carry only the 5% federal part because of the point-of-sale rebate, and some carry nothing at all. Smartbills keeps the tax each line was actually charged. The input tax credit you claim matches the receipt instead of a rate applied to the total.

  • Tax kept per line, as the merchant charged it
  • Point-of-sale rebate items counted at 5%, not 13%
  • Zero-rated and exempt lines with no tax to claim

The documentation an ITC needs, already attached

From $100 including tax, the CRA expects the supplier's GST/HST registration number on the document behind a claim, and from $500 it expects more. Smartbills keeps the receipt, its line detail and the registration number together. A review asks for something you already have.

  • Supplier HST number kept with the receipt
  • Line descriptions and tax amounts on every receipt
  • Original receipt attached to the ledger entry

Trips outside Ontario, taxed the right way

A hotel in Montréal charges GST and QST. A client dinner in Calgary charges GST only. Smartbills keeps each tax on its own line. The GST is claimed, and provincial tax you can't recover is expensed rather than slipped into the claim.

Why teams switch

The tax is on the receipt, not the card statement.

We claim HST as 13% of every total, and we know that's not what the receipts actually say.

The tax comes from each line of the receipt. Rebated, zero-rated and exempt items are counted as they were charged.

Once a purchase is over $100, the CRA wants the supplier's HST number, and it's never on the card statement.

The registration number comes with the receipt when the merchant prints it. The documentation is there before anyone asks for it.

Our team travels to Quebec and the QST gets lumped in with everything else.

Out-of-province taxes stay on their own lines. The GST part is claimed, and QST you're not registered for is expensed instead of claimed by mistake.

Before and after

What changes on an Ontario receipt.

13% of the total is the usual shortcut. These purchases show where Ontario receipts don't follow it.

Card statement and photos compared with With Smartbills
CapabilityCard statement and photosWith Smartbills
HST on the purchase13% of the totalThe tax each line was charged
Rebated and zero-rated itemsTaxed at 13% anywayCounted as charged
Supplier HST numberOnly if someone kept the paperKept with the receipt
QST from a Quebec tripMixed into the claimOn its own line, expensed
Getting receipts inPhotos at month endFrom the merchant or the mailbox

Integrations

Works with the tools you already use.

Your accounting software, bank feeds and card program, with data syncing in both directions.

See all integrations
  • QuickBooks
  • Xero
  • Sage
  • FreshBooks
  • Wave
  • MYOB
  • Zoho Books
  • NetSuite
  • SAP
  • Oracle
  • Dynamics 365
  • Square
  • Shopify
  • Clover
  • Toast
  • Lightspeed
  • WooCommerce
  • Stripe
  • PayPal
  • Adyen
  • Wise
  • Plaid
  • Chase
  • Bank of America
  • Wells Fargo
  • RBC
  • TD
  • BMO
  • Scotiabank
  • Desjardins
  • Brex
  • Ramp
  • Float
  • Mercury
  • Gusto
  • ADP
  • Deel
  • Rippling
  • Google Drive
  • Dropbox
  • OneDrive
  • Box
  • Gmail
  • Outlook
  • Google Analytics
  • Snowflake
  • Looker
  • Databricks
  • Google Cloud
  • Metabase
  • Slack
  • Microsoft Teams
  • Notion
  • Zapier
  • Airtable
  • Salesforce
  • HubSpot

FAQ

Frequently asked questions

What people ask us before they sign up.

13%, made up of the 5% federal part and an 8% provincial part. Businesses registered for GST/HST claim it back as an input tax credit on their return to the CRA.

Ontario rebates its 8% part at the point of sale on some items, including prepared food and drinks of $4 or less, printed books, children's clothing and footwear, and diapers. Those lines carry only 5%. Other items, like prescription drugs and basic groceries, are zero-rated and carry no tax. A claim calculated as 13% of the total overstates the credit on a receipt like that.

Under $100 including tax, the supplier's name, the date and the total with the tax charged. From $100, add the supplier's GST/HST registration number and the tax amount. From $500, also the buyer's name, the terms and a description of what was bought. Smartbills keeps the receipt and its line detail together so those fields are on file.

The GST part, yes, as an input tax credit. The QST only if the business is registered for QST, which most Ontario businesses aren't. Smartbills keeps the two on separate lines so the GST is claimed and the QST is expensed.

Generally no. Meals and entertainment are limited to 50% of the tax for input tax credits. Because Smartbills keeps each purchase categorized line by line, those amounts are already set apart when the return is prepared.

Register for a GST/HST account with the Canada Revenue Agency, online through Business Registration Online, by phone or by mail. It's required once your taxable sales pass $30,000 in a single quarter or over four consecutive quarters, and you can register voluntarily below that.

For a registered business, yes. The HST paid on purchases for your commercial activities comes back as an input tax credit on your GST/HST return. Exempt activities don't qualify, and meals and entertainment are limited to 50%.

Get started

Put a month of Ontario receipts to the test.

Connect a mailbox and a card. A month of Ontario purchases comes in with the HST taken from each line, rebated items included.