Gas As An Expense

by Shawn

Claiming Your ITC on Gas for Your Vehicle

Claiming Your ITC on Gas for Your Vehicle

I am wondering about treating gas as an expense and the HST involved ... there is a Fed and Prov portion. Do I just total the two and treat that as the HST portion deductable from HST charged? Or do I have to split the two? I am using Sage.

Thanks for this great resource!

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Hey Shawn,

I'm not sure what province you are from.

If you are from B.C. ... B.C. has a point of sale (POS) rebate on vehicle fuel to offset the carbon tax on the gas. The POS rebate does not have to show on the receipt so most gas stations only show the amount you were charged which equals the Federal portion of 5%.

As far as I know, Ontario does NOT have a POS rebate therefore the entire HST amount is claimable IF you are an HST registrant and the gas pertains to business travel not personal travel.

I'm not sure about the Atlantic provinces.

While I'm not familiar with Sage, normally for B.C. HST you just enter the HST rate as one rate (the total of the federal portion and the provincial portion) into your accounting software; not as two separate rates. I would assume it works the same way for the other provinces.

I have a table of all the GST/HST/PST rates for all the provinces on the tax rates page.

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