Contractor GST/HST invoice checklist: what to check before claiming a credit
Check the supplier registration and invoice details before using a contractor invoice to support a tax credit. Worker status is a separate question.
This checklist is for a business receiving a contractor's invoice. It helps check support for an input tax credit (ITC), which recovers eligible goods and services tax or harmonized sales tax (GST/HST) paid on business purchases. It does not decide whether the contractor should be an employee. That is a separate legal and tax question with its own tests and consequences. This guide assumes the working relationship has already been established.
Confirm the registration is real, not just stated
A contractor's invoice showing a GST/HST number does not guarantee that number is valid or currently registered. The Canada Revenue Agency's GST/HST Registry lets the paying business confirm whether a supplier's account number is genuine before relying on it. For any invoice of meaningful size, this check takes a few minutes and avoids relying on a number that turns out to be wrong, inactive, or simply mistyped.
Check that invoice detail scales with the amount
CRA's record-keeping guidance requires more invoice information as the amount increases. Once the total reaches $100, this includes the supplier's GST/HST number. A small invoice may be acceptable with fewer details. A larger invoice missing the supplier's number or a clear description gives weaker support for an ITC claim. Check the requirements for the amount involved rather than using one standard for every invoice.
A short checklist before filing the invoice as ITC support
| Item | Why it matters |
|---|---|
| Supplier's GST/HST number shown and confirmed valid | Required documentary evidence; confirm through the GST/HST Registry rather than assuming |
| Clear description of the goods or services provided | Supports that the expense relates to a commercial activity, a core ITC condition |
| Date of the invoice and the amount of GST/HST charged separately stated | Needed to calculate and support the actual credit claimed |
| Invoice retained with the return it supports | CRA's records-to-keep guidance calls for retaining GST/HST records for six years |
Having a valid invoice is not the same as having an eligible ITC
A detailed invoice is only part of CRA's ITC conditions. The purchase generally must relate to the business's commercial activity. Required documents and claim time limits also matter. Correct formatting cannot make an ineligible expense qualify. Use the checklist to gather support, not as the whole eligibility test.
Bookwits can store the invoice with the related task or client file for later use. It does not validate GST/HST numbers, calculate the credit or file the return. The bookkeeper or accountant applies current CRA rules to the particular expense.
Frequently asked questions
Does confirming a GST/HST number on the registry guarantee the ITC can be claimed?
No. It confirms the registration is genuine, which is one piece of required evidence, but eligibility also depends on the expense relating to commercial activity and meeting other documentary and time-limit conditions.
Is this checklist about deciding if someone is an employee or a contractor?
No. It assumes that classification question has already been settled separately and focuses only on whether the contractor’s invoice supports an ITC claim.