--- title: "GST/HST Audit: What to Expect and What the CRA Checks" url: https://www.everstonecpa.com/blog/gst-hst-audit-what-cra-checks description: "What to expect in a GST/HST audit: how files are picked, the records the CRA asks for, and how to answer proposed adjustments. Get help before you reply." type: guide updated: 2026-10-08 summary: "A GST/HST audit checks two things: that the registrant charged and reported tax whenever it was required, and that every input tax credit claimed was actually supported. Most of it comes down to sales coverage, supplier documentation and the reconciliation between returns and the books." faq_count: 9 publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta service_area: British Columbia, Alberta, Ontario and Manitoba language: en-CA contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online --- [Home](https://www.everstonecpa.com/) [Blog](https://www.everstonecpa.com/blog) GST/HST Audit: What the CRA Checks GST/HST # A GST/HST audit: *what the CRA actually checks* By EverStone CPA · Updated September 2026 · 8 min read **Quick answer:** A GST/HST audit checks two things: that the registrant charged and reported tax whenever it was required, and that every input tax credit claimed was actually supported. Most of it comes down to sales coverage, supplier documentation and the reconciliation between returns and the books. **Got a GST/HST review letter?** We gather what the auditor asked for, answer the CRA for you and fix the periods behind it, at a fee quoted in writing. [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=corporate-tax#enquiry-form) What to expect is set out below: which periods are opened, which documents are asked for, and which input tax credits get questioned first. An audit answered completely, once, with the working papers, is a shorter audit. [How a review is handled here](https://www.everstonecpa.com/cra-review-and-audit-support), or [start with an enquiry](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form). Tax you should have charged, and credits you claimed. ## Key takeaways - The audit tests two things: **tax charged and reported**, and **input tax credits claimed**. - Files are selected by **risk assessment**, not at random. - Keep records for **six years** from the end of the year to which they relate. - You get **30 days** to respond to a preliminary statement of audit adjustments. - An objection must be filed within **90 days** of the date on the notice. A GST/HST audit is narrower than an income tax audit and less frightening than it sounds. It asks whether tax that should have been collected was reported, and whether the credits claimed were real. The short answer to the HST audit what to expect question is that mechanical test: tax charged when required, and credits claimed that were real. ## How files get picked The CRA picks audit files by risk: likely errors, signs of non-compliance, and comparisons with similar files or other audits. Persistent refunds, sharp swings in reported sales, ratios out of line with the sector and repeated late filings all count. Our guide to [common audit triggers](https://www.everstonecpa.com/blog/cra-audit-triggers-small-business) covers the patterns. How a CRA HST audit then runs, from your revenue through to the input tax credits, is set out in the sections below. **GST/HST review or audit letter on your desk?** Send it to us. A CPA reads it and replies by email within one business day with what the CRA wants and a fixed fee to answer it. See [our CRA support](https://www.everstonecpa.com/cra-review-and-audit-support), or [send us the letter](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form). [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form) ## The two halves of the examination An audit tests two separate things, and a business can pass one and fail the other. It is worth knowing which half a question belongs to before answering it. ### Half one: did you charge and report the tax? The auditor starts from your revenue and works toward the returns. Typical questions: - Does total revenue in the books reconcile to the sales reported on the [GST/HST returns](https://www.everstonecpa.com/gst-hst-filing-services) for the same periods, and to the revenue on the corporate return? - Were any sales treated as exempt or zero-rated? On what basis, and is there evidence for it? - Was the correct provincial rate charged? Interprovincial sales are a standing source of adjustments. See the [place-of-supply rules](https://www.everstonecpa.com/blog/gst-hst-place-of-supply-rules-canada). - Were exports zero-rated with proper documentation? The conditions in our guide to [exports and non-resident customers](https://www.everstonecpa.com/blog/gst-hst-on-exports-and-non-residents) are exactly what gets tested. - Were sales of assets, equipment or vehicles taxed? These sit outside the normal sales cycle and get missed. - Were shareholder or employee benefits, and any taxable barter or trade arrangements, accounted for? ### Half two: were the credits supported? The CRA is explicit that during an audit it will confirm you were entitled to all the input tax credits you claimed. That means the auditor tests documentation, not just arithmetic: - Does an invoice exist for each material credit, showing the supplier’s name, the date, a description, the amount and the tax? - Was the supplier actually registered? The CRA operates a service for confirming a GST/HST account number, and credits claimed on tax charged by an unregistered supplier are vulnerable. - Was the purchase for use in **commercial activity**? Personal expenses run through the business are the classic disallowance. - Were credits claimed twice — once from the invoice and once from the statement or the credit card feed? - Were restricted or partially restricted items handled correctly? The mechanics of all this sit in our guide to [claiming input tax credits](https://www.everstonecpa.com/blog/input-tax-credits-itc-canada-guide). Not sure how this applies to you? Every business’s situation is different. Send an enquiry to a CPA and get a straight answer, plus a fixed quote before any work starts. [Send an Enquiry →](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form) [GST/HST filing](https://www.everstonecpa.com/gst-hst-filing-services) ## The records you are expected to have Keep all sales and purchase invoices and other business and GST/HST records for **six years from the end of the year to which they relate**. The CRA may ask for longer, and early destruction needs written approval. Keep capital property invoices longer still, to support future credits or tax owing if the use of the property changes. Auditors examine ledgers, journals, invoices, receipts, contracts and bank statements, and may examine personal records and those of related people or entities. Tax adjustments by your bookkeeper or accountant are in scope too. ## How the process runs - **First contact.** An auditor contacts you by mail or phone, or both, with the date, time and location. - **The examination.** On-site audits happen at your residence, your place of business, or your representative’s office; otherwise it is done from a CRA office and you send the documents in. Auditors cannot receive records by email, so use the CRA’s secure submission channels. If the auditor borrows documents, you get a detailed receipt. - **Proposed adjustments.** You receive a preliminary statement of audit adjustments and have **30 days** to analyze it, discuss it with the auditor and make representations. This is the stage where evidence changes outcomes. - **Assessment.** The CRA issues a notice of assessment or reassessment. If an amount is owing, interest runs. - **Dispute.** If you disagree, you have **90 days** from the date on the notice to file an objection using Form GST159. The [CRA audit document checklist](https://www.everstonecpa.com/cra-audit-document-checklist) lists what to pull together before the first meeting, and a refund held for review is decoded in [the GST/HST review letter](https://www.everstonecpa.com/cra-letter-gst-review). ## Preparing sensibly Before the auditor arrives, reconcile: tie each period's reported sales to the general ledger, pull the invoice for every large credit, document why anything is zero-rated or exempt, and check that the [bad debt adjustments](https://www.everstonecpa.com/blog/writing-off-bad-debts-canada) on write-offs were calculated correctly — they are often recalculated. Then be organized and brief. Answer what is asked, provide what is requested, and route questions through one person. An audit that starts with reconciled records and a clear explanation of unusual items usually ends with a short letter and no adjustment. If returns are late rather than merely under review, [the late GST filing penalties](https://www.everstonecpa.com/blog/late-gst-filing-penalties-canada) are formula-driven and worth knowing exactly. Sources - [CRA Guide RC4188 — What You Should Know About Audits](https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4188/what-you-should-know-about-audits.html) - [CRA Guide RC4022 — General Information for GST/HST Registrants](https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4022/general-information-gst-hst-registrants.html) - [Canada Revenue Agency — Keeping records](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/keeping-records.html) About this article **EverStone CPA** Prepared and reviewed by a CPA at EverStone CPA, serving businesses in BC, Alberta, Ontario and Manitoba. [About the firm →](https://www.everstonecpa.com/about) · [Send an enquiry →](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form) This article is general information, not tax advice for your specific situation. Tax rules and CRA administrative positions change — confirm anything that affects a decision with the CRA or with us first. ### Keep reading [What triggers a CRA audit →](https://www.everstonecpa.com/blog/cra-audit-triggers-small-business) [Claiming input tax credits →](https://www.everstonecpa.com/blog/input-tax-credits-itc-canada-guide) [How long to keep records →](https://www.everstonecpa.com/blog/cra-record-retention-how-long-to-keep-records)[Ask a CPA one question, free →](https://www.everstonecpa.com/quick-question)[CRA Review and Audit Support for Canadian Businesses →](https://www.everstonecpa.com/cra-review-and-audit-support) FAQ ## Frequently asked questions about GST/HST Audit: What the CRA Checks **What does a GST/HST auditor actually look at?** The CRA says an audit checks that you charged and reported GST/HST when required and are entitled to the input tax credits you claimed. So it tests sales for missed or under-rated tax, and purchases for credits that are unsupported or unrelated to commercial activity. **How does the CRA choose files for audit?** The CRA picks files by risk assessment, considering the likelihood or frequency of errors and signs of non-compliance, and may compare what it holds on you to similar files or other audits. **Where does the audit take place?** An auditor contacts you by mail, phone or both and sets the date, time and location. On-site audits are normally at your residence, your place of business or your representative’s office; otherwise at a CRA office, where you send or bring the supporting documents. **Can I email my records to the auditor?** No. CRA auditors are not allowed to receive records by email because information sent that way may not be secure. The assigned auditor can explain how to submit documents through the CRA’s secure online services instead. **How long do I have to respond to proposed adjustments?** You receive a preliminary statement of audit adjustments and have 30 days to discuss it with the auditor and make representations. The CRA then issues a notice of assessment or reassessment. **What if I disagree with the reassessment?** File an objection within 90 days of the date on the notice, using Form GST159, Notice of Objection (GST/HST), or online through My Business Account or Represent a Client. It goes to the Appeals Division for review. **What should I expect in an HST audit?** A letter naming the periods under review, a request for records, then an examination of both halves of the return: the tax you collected and the input tax credits you claimed. It ends with proposed adjustments you can answer before any reassessment is issued. [Ask about your case →](https://www.everstonecpa.com/quick-question) **What is a GST/HST post-assessment review?** A check made after a return has been assessed, usually asking for the invoices behind particular input tax credits. It is narrower than an audit, but an unsupported credit is still reassessed, so answer it with documents rather than explanations. [Ask about your case →](https://www.everstonecpa.com/quick-question) **Can a CPA represent me in a GST/HST audit?** Yes. Once authorized on your account, a representative deals with the auditor directly, answers the requests and responds to proposed adjustments. [How our CRA audit support works](https://www.everstonecpa.com/cra-review-and-audit-support). [Ask about your case →](https://www.everstonecpa.com/quick-question) ## Received a letter about your GST/HST account? Forward the letter and the periods it covers. A CPA replies by email within one business day with the documents to gather and a fixed fee to respond. [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form)[Book a Paid Advice Call](https://www.everstonecpa.com/advice-call) ## Have a question about this? Ask free through [the quick-question form](https://www.everstonecpa.com/quick-question); a CPA replies within one business day. Need more? A 45-minute **Advice Call** is $225 plus GST, credited to your first invoice if you become a client within 60 days. Want us to take it on? [Send an enquiry](https://www.everstonecpa.com/book-online?service=monthly#enquiry-form). [Ask a Free Question](https://www.everstonecpa.com/quick-question) [Book a Paid Advice Call](https://www.everstonecpa.com/advice-call) Email info@everstonecpa.com ★★★★★ “…have been completing my bookkeeping, taxes and financials for the last 2 years and they have been amazing. Thank you!” R. H. · Google review **Run your own numbers with the free calculators:** [Payroll deduction calculator](https://www.everstonecpa.com/payroll-deduction-calculator) · [work out the GST/HST](https://www.everstonecpa.com/gst-hst-calculator) · [estimate your incorporation savings](https://www.everstonecpa.com/incorporation-calculator) [← Foreign exchange gains and losses: receivables, payables and the capital-versus-income line](https://www.everstonecpa.com/blog/foreign-exchange-gains-losses-business-canada) [GST/HST instalments: the quarterly payments annual filers forget about →](https://www.everstonecpa.com/blog/gst-hst-instalments-annual-filers-canada) More on this subject: [every GST/HST guide](https://www.everstonecpa.com/gst-hst-hub). --- Source: https://www.everstonecpa.com/blog/gst-hst-audit-what-cra-checks Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online