For Canadian accounts payable teams, GST/HST input tax credits start with a supported purchase, not simply a tax amount on an invoice. The general rule connects the credit to tax paid or payable by a registrant and the extent of commercial use [1]. Sufficient evidence must be obtained before filing the return that claims the credit [1].
This guide provides an invoice review checklist and an exception queue for ordinary supplier purchases under the normal GST/HST rules. The queue, owner assignments and examples below are suggested internal controls, not a CRA form or a determination of any business’s entitlement.
Check eligibility before marking an invoice ready
Ask the accounting owner to confirm the purchasing entity’s registration, the relevant reporting period and the purchase’s commercial purpose. Keep the entity that incurred the expense visible in the review record; a group company name is not enough to settle who can claim. The legal entitlement and documentation tests operate together [1].
Route mixed business/personal use, purchases supporting exempt activities and restricted expenses for specialist review. Businesses using the quick method generally cannot claim ITCs on operating expenses, although some capital purchases can qualify [5]. Do not apply this ordinary-invoice workflow indiscriminately to those cases [5].
Use separate fields for invoice tax, proposed ITC and approved ITC. That distinction lets AP record what the supplier charged while leaving an uncertain claim unresolved. Any accounting treatment should follow the business’s approved policy.
Apply the correct invoice information band
Use the document’s total paid or payable—not its tax line—to select the information band. Amounts are in Canadian dollars [2].
| Document total | Information to check |
|---|---|
| Under $100 | Supplier or intermediary name; invoice date, or tax paid/payable date if no invoice; total paid or payable [2]. |
| $100 to $499.99 | The above, plus GST/HST registration number and required tax disclosure. Identify taxable items appropriately where supplies have different tax status [2]. |
| $500 or more | The above, plus recipient or authorized representative name, payment terms and a description sufficient to identify each supply [2]. |
Tax-inclusive documents need rate and grouped-amount information. Consult the regulation for separate-tax and combined provincial-tax presentations [2].
Version check: these bands appear in the Justice Laws consolidation current to June 21, 2026 [2]. Check subsequent amendments before filing [2].
Build the checklist around the evidence set rather than insisting that every fact appear on one PDF. Supporting documentation can include contracts and electronic records as well as invoices. A receipt showing payment alone may not resolve missing information [7].
Verify the supplier for the transaction date
The CRA’s free GST/HST Registry uses the first nine digits of the account number, the supplier’s business name and the transaction date from the business document [3]. Keep the full number in the vendor record, but follow the Registry’s entry format. Print its Search Details result for the evidence file [3].
A failed lookup needs investigation. Check the name, its order, the number and the transaction date against supplier information. Confirm details with the supplier; unresolved errors can be referred to CRA Business Enquiries. An unsuccessful first search should not become an unsupported accusation of fraud [4].
Record both the transaction date searched and the date your team performed the check. Attach the result to the invoice review, so a later reviewer can see what was checked. A registration match is one control; it does not settle the purchase’s commercial use or every condition for an ITC [1] [3].
For digital subscriptions, check whether the supplier uses the simplified GST/HST framework. CRA instructs normally registered purchasers to provide registration evidence to those suppliers to avoid being charged tax. Tax charged in that situation cannot simply be claimed as an ITC or rebate. Escalate it for supplier correction and tax review [3].
Use an exception queue with a clear release condition
Instead of a single “tax issue” label, use a small set of reasons with an owner and a defined next action. The following is a proposed operating design, not a statutory list of statuses.
| Queue reason | Owner and next action | Evidence needed to close |
|---|---|---|
| Missing document information | AP requests the specific missing detail from the supplier. | Corrected document or linked supporting record; reviewer confirms completeness. |
| Registration lookup unresolved | Vendor maintenance checks the name, number and transaction date. | Saved result or documented resolution accepted by the tax reviewer. |
| Recipient or business use unclear | Budget owner explains the purchaser and purpose; accounting reviews entitlement. | Entity support and approved treatment, including any allocation. |
| Tax calculation or supply status unclear | Tax reviewer examines the invoice and underlying purchase. | Supplier clarification or correction and the reviewer’s decision. |
| Potential duplicate or replacement | AP links the invoice to earlier copies, revisions and credit notes. | One traceable document chain and confirmation against prior claims. |
A useful queue row contains: invoice ID, supplier, purchasing entity, transaction date, document total, invoice tax, proposed ITC, exception reason, owner, next-action date, evidence link, decision, reviewer and intended claim period.
Keep payment approval and ITC review visible as separate decisions. An evidence question does not by itself decide whether a supplier payment is contractually due. Likewise, paying an invoice should not automatically release its tax amount into a claim.
Worked example: an invoice with two unresolved checks
Illustrative case: an AP clerk receives a supplier invoice showing a CAD 1,130 total, including CAD 130 described as HST. These are hypothetical invoice figures, not a conclusion that this tax charge or rate is correct.
The buyer field contains only a department nickname, and the first Registry lookup fails. The document falls in the $500-or-more band, which calls for recipient identification among the required information [2].
- Record the CAD 130 invoice tax, but leave the approved ITC unresolved.
- Ask for evidence identifying the purchasing entity and obtain the supplier’s exact registered or trading name.
- Repeat the Registry check using the verified details and transaction date; retain both the original issue and its resolution.
- Have accounting confirm the charge, commercial use and any restriction before deciding the eligible amount.
- Link a replacement invoice to the original so the tax is not treated as a second purchase.
If the reviewer confirms the whole charge qualifies, the approved amount may be CAD 130. If eligibility or evidence remains unresolved, the queue stays open. Do not force a number merely to complete the month-end checklist.
Close the review with an evidence-to-return trail
Before handing the schedule to the return preparer, reconcile its approved items to the accounting records. Separate current-period candidates, older unclaimed items, adjustments and unresolved exceptions. For every released row, retain a link to the source documents and a dated approval.
CRA generally allows most registrants four years to claim an ITC, but some have a two-year limit and the deadline calculation matters [5]. Assign the applicable deadline to the return preparer rather than treating every open item as having four years from its invoice date [5].
Retain purchase invoices or receipts and enough description to determine the tax treatment [6].CRA’s documentary guidance generally requires retention for six years after the end of the latest year to which the records relate; that can be later than the transaction year [7]. Apply the relevant retention rules before deleting records [7].
The handover is complete when another reviewer can trace the proposed credit from the return schedule back to the invoice, supplier check, business-purpose evidence and approval without reconstructing the decision from email.
References
- Excise Tax Act, section 169: eligibility and evidence (gc.ca)
- Input Tax Credit Information (GST/HST) Regulations, section 3 (gc.ca, 2026)
- CRA: Confirming a GST/HST account number (canada.ca, 2025)
- CRA: GST/HST Registry error messages (canada.ca, 2023)
- CRA: Input tax credits, restrictions and claim deadlines (canada.ca)
- CRA: GST/HST and payroll records (canada.ca, 2026)
- CRA Memorandum 8.4: Supporting documents and retention (2012; historical thresholds not used) (canada.ca)
