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New Member
posted Jun 13, 2021 3:15:39 PM

For entering details of motor vehicle expenses regarding gst taxable and hst taxable, am I inputting the total before taxes were applied?

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1 Best answer
Level 5
Dec 17, 2021 7:21:44 AM

Since we do not know you claim the vehicle expense for employment expenses or for business expenses, we give you 2 situations: 

1. As per CRA- You can deduct expenses you paid to run a motor vehicle you use to earn employment income. Your motor vehicle expenses include any GST and provincial sales tax (PST), or HST, you paid on these expenses.

To deduct the expenses you paid to earn commission income, you have to meet all of the following conditions:

Under your contract of employment, you had to pay your own expenses.
Note
You are not considered to have paid your own motor vehicle expenses if your employer reimburses you or you refuse a reimbursement or reasonable allowance from your employer.

  1. You were normally required to work away from your employer's place of business.
  2. You were paid in whole or in part by commissions or similar amounts. These payments were based on the volume of sales made or the contracts negotiated.
  3. You did not receive a non-taxable allowance for traveling expenses. Generally, an allowance is non-taxable as long as it is a reasonable amount. For example, an allowance for the use of a motor vehicle is usually non-taxable when it is based solely on a reasonable per-kilometer rate.
  4. You keep with your records a copy of Form T2200, Declaration of Conditions of Employment, which has been completed and signed by your employer.

2. Assuming this is a business expense, according to the CRA you can claim GST/HST on your business expenses which include motor vehicle expenses. Please visit Business expenses for more details.

Here is additional information if you're leasing: Motor vehicle – Leasing costs

If you require further assistance please contact our phone support team or contact us directly on Facebook or Twitter

Thank you for using TurboTax.

1 Replies
Level 5
Dec 17, 2021 7:21:44 AM

Since we do not know you claim the vehicle expense for employment expenses or for business expenses, we give you 2 situations: 

1. As per CRA- You can deduct expenses you paid to run a motor vehicle you use to earn employment income. Your motor vehicle expenses include any GST and provincial sales tax (PST), or HST, you paid on these expenses.

To deduct the expenses you paid to earn commission income, you have to meet all of the following conditions:

Under your contract of employment, you had to pay your own expenses.
Note
You are not considered to have paid your own motor vehicle expenses if your employer reimburses you or you refuse a reimbursement or reasonable allowance from your employer.

  1. You were normally required to work away from your employer's place of business.
  2. You were paid in whole or in part by commissions or similar amounts. These payments were based on the volume of sales made or the contracts negotiated.
  3. You did not receive a non-taxable allowance for traveling expenses. Generally, an allowance is non-taxable as long as it is a reasonable amount. For example, an allowance for the use of a motor vehicle is usually non-taxable when it is based solely on a reasonable per-kilometer rate.
  4. You keep with your records a copy of Form T2200, Declaration of Conditions of Employment, which has been completed and signed by your employer.

2. Assuming this is a business expense, according to the CRA you can claim GST/HST on your business expenses which include motor vehicle expenses. Please visit Business expenses for more details.

Here is additional information if you're leasing: Motor vehicle – Leasing costs

If you require further assistance please contact our phone support team or contact us directly on Facebook or Twitter

Thank you for using TurboTax.