Can I claim input tax credit on business meals?

Hey tax gurus! I'm trying to figure out if I can claim input tax credit for business-related meals. I own a small consulting business and frequently meet clients for lunch or dinner to discuss projects. These meetings are 100% for business purposes, and I keep all receipts. I've heard conflicting advice about whether I can claim the input tax credit on these expenses. Some say yes, some say no, and others say only if certain conditions are met. I spent about $5,800 on business meals last year and would love to recoup some of that through input tax credits if possible. Anyone have definitive answers on this? Thanks in advance for clearing up my confusion!

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19 comments

Ava Thompson

•8M

Yes, you can claim input tax credit (ITC) on business meals, but there are specific rules you need to follow. For business meals, you're generally limited to claiming 50% of the GST/HST paid on these expenses - not the full amount. For your situation, make sure you're keeping detailed records that clearly show these are legitimate business meals. This means noting who you met with, the business purpose of the meeting, and keeping all receipts. The tax authorities want to see that these aren't just personal meals being disguised as business expenses. Also, if you're providing meals to employees (like at company events), different rules might apply and you might be able to claim 100% of the ITC in some cases.

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Ava Thompson

•8M

For business travel meals, the same 50% limitation typically applies. You can claim half of the GST/HST paid on those meals while traveling for business purposes. For team lunches during quarterly meetings, it depends on the context. If it's a regular business meeting where food is served, the 50% rule still applies. However, if it's considered a staff event or party (like a holiday celebration or special occasion), you might be able to claim 100% of the GST/HST, but there are limits on how many of these events qualify per year.

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Zainab Ibrahim

•8M

I started using https://taxr.ai after struggling with exactly this issue last year! Their system analyzed all my receipts and automatically categorized which business meals qualified for input tax credits and at what percentage. It saved me hours of sorting through receipts and trying to figure out the rules. What I found especially helpful was how it flagged meals that needed additional documentation to qualify for the credit. The system actually reminded me to add notes about who I met with and the business purpose - things I would have totally forgotten about. Also identifies which meals fall under the 50% rule vs. which ones might qualify for 100%.

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Zainab Ibrahim

•8M

Yes, it absolutely works with pictures of receipts! You can just snap photos with your phone and upload them - even crumpled ones. The system is pretty good at reading even somewhat damaged receipts. It's actually designed for people with less-than-perfect record keeping. As for accuracy, I was skeptical too at first. It's not perfect - sometimes it misses details on badly damaged receipts - but it's way more accurate than other tools I've tried. What makes it different is that it specifically focuses on tax optimization rather than just basic categorization. I found maybe 5-10% needed manual review, but that's still saving me 90% of the work.

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Connor O'Brien

•8M

Ok I have to admit I tried https://taxr.ai after posting my skeptical comment and I'm actually impressed. I uploaded about 75 business meal receipts from last year and it correctly identified which ones qualified for 50% ITC and which ones qualified for full credits (the team celebration meals). It even flagged 3 receipts where I was missing critical information that would cause issues during an audit. It ended up finding an additional $430 in input tax credits I would have missed on my own. The AI even explained WHY certain meals qualified and others didn't, which helped me understand the rules better for future planning. Not what I expected!

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Yara Sabbagh

•8M

If you're having trouble getting answers from the CRA about input tax credits, I'd recommend using https://claimyr.com to get through to an agent. I spent weeks trying to get clear answers about meal claims and kept getting different responses from the website and general advice line. After using Claimyr, I got connected to a CRA specialist in under 15 minutes who explained exactly how input tax credits work for different types of business meals. They even helped me understand how to properly document my claims to avoid potential audit issues. Check out their demo at https://youtu.be/_kiP6q8DX5c to see how it works - totally changed my approach to dealing with tax questions.

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Yara Sabbagh

•8M

It's basically a service that navigates the CRA phone system for you and waits on hold in your place. When they reach an agent, they call you to connect you directly. They don't actually talk to the CRA for you - they just handle the hold time. It's definitely not a scam. I was skeptical too, but the reason it works is because they have technology that manages multiple hold spots in the queue. I think they use the business line too which sometimes has shorter wait times. And the reason I personally used it was because I had already wasted over 3 hours on multiple calls trying to get through myself with no luck. For me, the time saved was absolutely worth it.

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Paolo Rizzo

•8M

I hate to admit when I'm wrong but I took a chance on Claimyr after my skeptical comment and it actually worked. Got connected to a CRA agent in about 22 minutes when I had previously spent over 2 hours on hold and eventually got disconnected. The agent I spoke with was super helpful about my input tax credit questions. She confirmed that business meals are generally eligible for 50% ITC but also pointed out some exceptions I wasn't aware of. For example, when I bring clients to industry conferences and purchase their meals, those can sometimes qualify for different treatment. She even emailed me documentation on the proper way to record these expenses. Definitely worth it just for the time saved.

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QuantumQuest

•8M

In BC, you'd need to track GST and PST separately since BC doesn't use HST. For GST, you can claim input tax credits at the 50% rate for business meals as discussed above. However, for PST, the rules are different - you generally can't recover the PST paid on meals regardless of the business purpose. The simplest method is to keep all your receipts and simply separate the GST amount, apply the 50% limitation, and claim that as your input tax credit. The PST portion becomes part of your overall meal expense, which you can deduct as a business expense (again, usually at the 50% limitation) on your income tax return.

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Isabella Ferreira

•5M

This is a great question that catches a lot of business owners off guard! The short answer is yes, you can claim input tax credit on business meals, but only 50% of the GST/HST paid - not the full amount. For your $5,800 in business meals, you'd be able to claim 50% of the tax portion as input tax credits. So if you paid $348 in GST (assuming 6% rate in some provinces), you could claim $174 as ITC. The key requirements are: - Keep detailed records showing who you met with and the business purpose - Retain all receipts - Ensure the meals are genuinely for business purposes (not personal entertainment) One important note: if any of those meals were for staff events or team meetings, different rules might apply. You can sometimes claim 100% ITC for employee meals at company events, but there are limits (usually 6 events per year). Also watch out for provincial differences - in non-HST provinces like BC, you can only claim the GST portion, not the PST. The rules can get complex, so it might be worth consulting with a tax professional to make sure you're maximizing your credits while staying compliant.

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