Employee, partner, and volunteer expenses

Reimbursements and allowances paid to an employee, partner, or volunteer can be claimed as expenses.

Reimbursements

You can claim input tax credits (ITCs) for the GST/HST included in reimbursements you pay to your employees or partners for expenses they incurred in Canada on your behalf for your commercial activities.

Allowances

You can claim an ITC calculated on a reasonable allowance you pay to your employees or partners if you meet certain conditions.

Charities or public institutions may also claim ITCs for GST/HST included in reimbursements or allowances paid to volunteers.

See Guide RC4022, General Information for GST/HST Registrants for more information.

Forms and publications

• Guide RC4022, General Information for GST/HST Registrants
• GST/HST Memoranda Series Chapter 8-1, General Eligibility Rules
• GST/HST Memoranda Series Chapter 8-2, General Restrictions and Limitations