Should I a sub contractor include reimbursement paid to me for fuel in yearly income earned and do I pay HST on it?

[TurboTaxKim]

When a client is paying fuel or materials as a reimbursement, the total value including GST paid is included on the invoice as a separate line item. This amount is not subject to GST Collected. However, the contractor cannot claim the Input Tax Credits (ITCs) on this amount either. The GST rules are made so the end user pays the GST.

If you charge your client for mileage or fuel (as a per km or set rate), then you need to include the amount as income and charge GST/HST. You will also be able to claim an offsetting ITC from any fuel receipts you have.