Qualifying Expenses

You can recover the GST and QST paid on goods and services purchased for your business activities.  

Operating expenses

Operating expenses are those incurred for the operation of a business. They include:

• fixed costs
• management costs
• costs related to the operation and support of the business
• costs incurred for the purchase of office equipment and the rental of office space, a business or equipment
• costs related to the use of public services 

You can claim ITCs and ITRs for home office expenses if at least one of the following applies:

• The work space in your home is your principal place of business.
• The work space in your home is used exclusively (90% or more) to earn income from your business and meet persons in the course of your commercial activities.

If an expense cannot be attributed solely to your taxable activities or your exempt activities, you must divide it between the two. Methods based on the allocation of space, time, cost or revenue may be used under certain conditions.