Documentary requirements for input tax credits

A buyer meets this when checking the target’s GST/HST credit claims. The test is about records: subsection 169(4) looks at the evidence the registrant had obtained before filing the return in which the credit is claimed.

What the Act and the Regulations say

• Subsection 169(4) says a registrant may not claim a credit for a reporting period unless, before filing the return in which it is claimed, the conditions in paragraphs (a) and (b) are met.
• Paragraph (a) is sufficient evidence, in such form containing such information as will enable the credit to be determined, including any prescribed information.
• The Input Tax Credit Information (GST/HST) Regulations prescribe that information in section 3. They define supporting documentation to include an invoice, a receipt, a credit-card receipt and a written contract or agreement.
• Under subsection 169(5) the Minister may exempt registrants from subsection (4) requirements for a supply when satisfied that sufficient records are available.

What to ask

Ask to see the supporting documents behind a sample of the credits, and read section 3 of the Regulations for what each claim needs. For the wider check, see how to check HST compliance when buying a business and the entry on the input tax credit.