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Business expense documentation starts with a receipt that shows the date, the seller’s name and address, your name and address, and a full description of what you bought. The CRA also expects you to keep it for six years from the end of the last tax year it relates to. For a 2026 purchase on a calendar year, that runs to the end of 2032.
What documentation should a business expense have?
The CRA’s page on business records spells out the basics. The table lists them, along with the extra detail that applies when GST/HST is involved.
| Item | What to keep |
|---|---|
| Date | The date of the purchase |
| Seller | Name and address of the seller or supplier |
| Buyer | Your name and address |
| Description | The full description of the goods or services |
| Seller’s GST/HST number | Asked for on purchases of $100 or more, when the seller is a registrant |
| Retention | Six years from the end of the last tax year the record relates to |
A till slip that says “supplies $84.20” is thin. If the description is vague, write on it what the money bought and what job it was for, the same day.
What if the seller doesn’t give you a receipt?
It happens at markets, with tradespeople and with small suppliers. The CRA’s answer is to record the details yourself in your expense journal: who you paid, how much, the date and what the deal was. That’s a fallback, though. A note in your own journal carries less weight than a proper receipt, so ask for one first.
How do you keep GST/HST paperwork in order?
If you’re a registrant, the tax you pay on purchases can come back as an input tax credit. The CRA lists the conditions: the purchase was for your commercial activities, you were registered at the time, tax was actually charged, you hold supporting documents and you claim within the time limit. For most registrants that limit is four years from the end of the reporting period when you could first claim.
How much detail the paperwork needs depends on the size of the purchase. The CRA’s input tax credit page sets out three levels.
| Purchase total | What the paperwork needs |
|---|---|
| Under $100 | Supplier’s name, the date, and the total |
| $100 to $499.99 | The above, plus the GST/HST charged and the supplier’s registration number |
| $500 or more | All of the above, plus your name, a brief description and the terms of payment |
CRA memorandum 8-4 is the longer explanation, though the copy we opened still shows an older set of cut-offs, so use the input tax credit page for the amounts.
The HST reverse calculator splits a receipt that has tax inside the price, which helps when you’re matching paperwork to a return.
A worked example with an invoice and a dinner
Say a plumber in Ontario pays $1,130 for a repair on the work van. The GST/HST calculator shows $1,000 before tax and $130 of HST. The $1,000 goes in the expense column and the $130 is tracked for the credit, if you’re registered. That invoice is over $500, so it needs every detail in the last row of the table.
Now a client dinner that costs $120. The CRA limits meals and entertainment to 50% of the amount you spent, or of an amount that’s reasonable in the circumstances, whichever is less. So the most you’d claim is $60. Keep the receipt and write down who was there and why. Same goes for the small stuff: if Sam picks up a double-double and a box of Timbits for a site meeting and spends $24, the claim tops out at $12.
If you’re self-employed, the self-employed tax calculator shows how claimed expenses change your bill. Expenses also move your instalments, which the tax instalments calculator can estimate.
Where do people slip up?
The biggest one is relying on a card statement. It proves money left your account. It doesn’t say what you bought. Other common gaps:
- Fuel and parking with no note of the trip they belonged to
- Personal and business items on one receipt with nothing marked
- Photos of thermal receipts that faded before the photo was backed up
- Vehicle costs claimed without a logbook
On that last one, the CRA calls an accurate logbook the best evidence of business use. For each trip it wants the date, destination, purpose and kilometres, plus the odometer reading at the start and end of the year. The logbook is what turns “I drive a lot for work” into a number. If you drove 20,000 km in the year and 14,000 of it was for business, that’s 70% business use, and 70% of the fuel and repairs is where the claim starts.
And don’t bin things early. If you want to destroy records before the six years are up, you need the CRA’s written permission on form T137. If you’re building a habit from scratch, the self-employed expenses checklist lists what usually needs a receipt.
Our sources
The record rules, the six year period, the receipt details, the meals limit and the ITC conditions come from Canada Revenue Agency pages checked in October 2026. The HST figures in the example come from our calculators, which use the 13% Ontario rate. We’re an independent site, and no government body is behind it.
Frequently asked questions
How long do I keep business expense receipts?
The CRA says six years from the end of the last tax year the record relates to. Records about property you still own or shares may need to be kept longer.
Is a bank or card statement enough?
It shows a payment, not what you bought. The CRA asks for receipts that describe the goods or services, so keep those as well.
What do I do if the seller gave no receipt?
Write the seller's name and address, the amount, the date and the details of the deal in your expense journal. Get a proper receipt when you can.
How much of a business meal can I claim?
At most 50% of what you spent, or of a reasonable amount if that is lower. Keep the receipt and note who attended.
Can I destroy records early?
Only with the CRA's written permission, requested on form T137.
- Self-employed taxes in Canada: income, CPP and GST
How tax works when you are self-employed in Canada: reporting income and expenses, paying both halves of CPP, instalments and when to register for GST