Can I deduct HST as an expense and also claim it back?
Avoid Claiming HST Twice in Your Expenses. Understand the Canadian tax rules, records to gather and practical next steps before preparing your return.
Request a quote →Arsen Accounting Services · Prepared October 29, 2026
GST/HST and records: 10 practical business questions · Browse the 100-article collection
The direct answer
Do not count the same tax twice. When you claim an input tax credit for GST/HST paid or payable on an expense, reduce the income-tax expense by the credit. Tax that is not recoverable may form part of the expense or asset cost under the applicable rules. Reconcile the tax accounts before giving your preparer a total of business costs.
Use a consistent bookkeeping approach
Explain whether the books record purchases before or after GST/HST and how recoverable tax is tracked. The preparer needs that method to reconcile the income-tax expense calculation with GST/HST claims. A spreadsheet containing a mixture of gross and net amounts can overstate costs even when each individual receipt is genuine. Keep the original invoice totals available.
Review adjustments in both places
A supplier refund, credit note or personal-use adjustment may affect more than one calculation. Trace the transaction through the expense account and tax account instead of changing only the figure that looks wrong. If you use a special GST/HST accounting method, identify it before applying a generic formula; the correct treatment depends on the method and facts.
What to gather before the review
- Expense ledger showing gross and net treatment
- GST/HST return calculations and tax-control account
- Refunds, adjustments and accounting-method details
Can I deduct the full receipt and also recover all its HST?
Do not assume both amounts are available. The income-tax cost must account for recoverable tax under the applicable treatment. Reconcile the two calculations so the same tax is not effectively counted twice.
Your next step
Identify whether your expense summary is before or after recoverable GST/HST.
Related reading
Official sources
Expenses section of form T2125
Sources checked for this collection on October 28–29, 2026. Annual forms may refer to a specific tax year. Use the rules and limits for the year being filed. General information; eligibility, elections and deadlines depend on the facts. No deduction or tax saving is guaranteed.
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