Troubleshooting

If you are not registered for GST/HST and you do not claim the input tax credits on your GST/HST return, then you can include the sales taxes in your expenses.

 

You mentioned that the receipts for the expenses are mixed with groceries. If these are personal groceries, then you should separate them from the expenses related to your self-employed business. Since personal expenses and business expenses are mixed in one receipt, the most conservative option is to exclude the HST from the expenses. Technically, you can try to guess which items in the receipt have GST/HST by following the Canada Revenue Agency (CRA)’s rules for GST/HST rates and Type of supply, but perhaps it doesn’t worth your effort if the amount of HST is not much. For the future, I would suggest that you paid for your personal groceries and business expenses separately, so you can have separate receipts. That way, it would be easier for the administration of your self-employed business.

 

You may also want to check this TurboTax FAQ: Am I a freelancer and how does that affect me at tax time?

 

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