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One blog post closer to clean books.
Each blog post from the Castle team is packed with practical tips, real-world experience, and clear answers to common bookkeeping questions. Whether you're sorting expenses or planning for tax time, you'll find guidance to help you run your business with clarity and confidence.
Terms of Service
Welcome to Castle! These terms of service outline the rules and regulations for the use of our bookkeeping services.
By accessing this website and using our services, you accept these terms and conditions in full. Do not continue to use Castle services if you do not accept all of the terms and conditions stated on this page.
Castle offers professional bookkeeping services including transaction categorization, reconciliations, financial reporting, GST/HST filing, and other related services as agreed upon with the client.
2. Billing and Payments
All services provided by Castle are billed on a recurring basis unless otherwise
agreed upon. Payments are due upon receipt of invoice. We accept payment via credit card, debit card, and electronic funds transfer.
3. Cancellation and Refund Policy
Clients may cancel services at any time by providing 30 days’ notice in writing or via email. Refunds for prepaid services will be prorated based on the remaining unused portion of the services.
4. Privacy Policy
Our privacy policy outlines how we collect, use, and protect your personal information. We do not sell or share your information with third parties without your consent, except as required by law.
5. Liability
Castle will perform all services with reasonable care and skill. However, we do not accept liability for losses resulting from acts of nature, third-party errors, or misuse of financial information or reports by the client.
6. Amendments
Castle reserves the right to amend these terms of service at any time. Amendments will be effective immediately upon posting on this website.
7. Contact Us
If you have any questions about this privacy policy or our privacy practices, please contact us at:
Castle
316 1st Ave NE
Phone: 587-872-0602
Email: info@bookwithcastle.com
One blog post closer to clean books.
Each blog post from the Castle team is packed with practical tips, real-world experience, and clear answers to common bookkeeping questions. Whether you're sorting expenses or planning for tax time, you'll find guidance to help you run your business with clarity and confidence.
GST/HST on Expenses: What You Can Recover and What You Can’t
Once your business is registered for GST/HST, you gain the ability to recover the sales tax you pay on business purchases. This recovery is called an Input Tax Credit (ITC). Claiming ITCs correctly can reduce your tax bill significantly — but only if you understand the rules.
What qualifies for GST/HST recovery
You can claim ITCs on expenses that:
- Are used to earn business income
- Include GST/HST paid or payable
- Have proper documentation (receipt + proof of payment)
- Are claimed in the correct reporting period
Common examples include:
• Office supplies and software
• Tools, equipment, capital assets
• Advertising and subcontractors
• Business portion of utilities, phone, and internet
• Vehicle expenses when business-related and supported by mileage tracking
Expenses that do not allow full GST recovery
Some items have limits, even when legitimate for income tax purposes:
• Meals and entertainment: only 50 percent of GST/HST is recoverable
• Personal or mixed-use items: business-use percentage must be documented
• Automobiles and fuel without a mileage log: CRA can deny the claim
• Residential rent in a home office claim: may have restricted or no GST recovery
If an expense is not deductible for income tax, its GST/HST is not recoverable either.
Capital purchases and ITCs
Large assets such as vehicles, machinery, or computers usually allow full GST/HST recovery upfront.
The asset itself is written off over time using CCA, but the tax portion is claimed immediately, which can improve cash flow.
Timing matters
You typically have up to four years to claim ITCs, but it is best practice to record them in the period the expense occurs to keep clean records and avoid missed refunds.
What CRA expects you to keep
To support your ITCs in an audit:
• Original or digital receipt showing GST/HST amount
• Who you paid
• What you purchased
• Date and method of payment
• Link to a business purpose
Without the full documentation, CRA may disallow the credit — even if the expense was legitimate.
Bottom line
GST/HST recovery is a valuable benefit, but it comes with rules.
Claim the tax back only when the purchase supports business income and you can clearly prove it.
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