CRA GST/HST Appliance Repair, Installation & Home Equipment Troubleshooting Audit — Montreal CPA Firm Near You: Defending Taxable Labour, Parts, Emergency Calls, Subcontractors & ITCs

A CRA GST/HST Appliance Repair & Installation Audit targets:

• appliance repair technicians
• dishwasher / washer / dryer repair
• refrigerator & freezer repair
• oven / stove / range troubleshooting
• microwave and hood fan repairs
• appliance installation specialists (non-licensed tasks)
• mobile appliance technicians
• subcontract appliance helpers
• emergency same-day repair providers

This industry is high-risk for CRA audits because appliance repair involves:

• 100% taxable services
• high parts turnover (motors, pumps, valves, belts)
• emergency callouts with no invoices
• e-transfer and cash revenue
• subcontract helpers
• high volume of small jobs with weak documentation

Mackisen CPA Montreal specializes in defending appliance technicians by applying correct GST/HST rules, rebuilding invoices, validating subcontractors, and reconstructing ITCs for parts, tools, and vehicles.

Legal Foundation

Excise Tax Act

• s.165 — ALL appliance repair, installation & troubleshooting services are fully taxable

• s.221 — GST/HST must be collected on every job

• s.169 — ITCs allowed only with full documentary proof

• s.141.01 — allocation for mixed-use tools and vehicles

• Schedule IX — GST/HST depends on the location of the property serviced

• s.123(1) — defines “repair,” “installation,” “tangible personal property service”

CRA + Case Law

• Appliance repair labour = taxable

• Parts and labour bundles = taxable

• Installation services = taxable

• Diagnostics & service calls = taxable

• CGI v. Canada — service location determines GST/HST rate

• Royal Bank v. Canada — missing invoice details invalidates ITCs

• Northwest Company Inc. — supplier invoices must meet legal standards

Learning insight: There is no GST exemption for appliance services — every repair, installation, or diagnostic visit is taxable.

Why CRA Audits Appliance Repair Technicians

Revenue Risks

• GST/HST not charged on labour or diagnostics
• parts sold without GST
• cash/e-transfer service calls not reported
• emergency calls (evening/weekend) not invoiced
• multi-unit building repairs not tracked
• travel and pickup/delivery fees missing GST
• deposits not reported in GST period
• interprovincial (QC–ON) repairs misrated

Subcontractor Risks

• subcontract helpers not GST-registered
• invalid or missing subcontractor invoices
• cash labour paid without receipts
• misclassification (employee vs subcontractor)
• T4A exposure

ITC Risks

• missing invoices for:
– motors, pumps, elements, circuit boards
– belts, valves, hoses, filters
– small tools, testers, multimeters
– ladders, PPE, gloves
– vehicle gas & repairs
• imported parts/tools not self-assessed (s.218)
• personal-use tools claimed as business
• home garage/workshop incorrectly expensed

Operational Risks

• no job logs
• service-call chats not linked to invoices
• parts purchased not matching job volume
• multi-day repair logs missing
• appliance pick-up/delivery not invoiced
• invoice numbers missing or inconsistent

High-risk operators:

• mobile appliance techs

• subcontract-heavy repair crews

• “no paperwork” same-day repair techs

• multi-unit building repair contractors

Learning insight: CRA’s favourite audit indicator: “too many parts purchased, not enough revenue filed.”

CRA Appliance Repair Audit Process

1. CRA requests:
   – invoices (labour, diagnostics, parts, travel, pickup/delivery)
   – subcontractor invoices + GST numbers
   – job logs / booking calendars
   – supplier invoices for parts & tools
   – bank & e-transfer statements
   – mileage logs
   – ITC spreadsheets
   – import receipts
   – T5018 summaries

2. CRA tests:
   • GST/HST charged on every repair and part
   • subcontractor GST compliance
   • parts-used vs jobs-reported consistency
   • logs → invoices → deposits → GST alignment
   • imported-tool self-assessment
   • personal-use equipment claims
   • multi-province GST accuracy

3. CRA issues a Proposed Audit Adjustment.

4. Mackisen CPA prepares full legal and documentary rebuttal.

Learning insight: CRA uses part purchase patterns to estimate hidden income and missing GST.

Mackisen CPA’s Appliance Repair Audit Defense Strategy

• create an Appliance Repair Tax Matrix (diagnostic, labour, parts, travel, delivery)
• rebuild GST/HST-compliant invoices for consistency
• verify subcontractor GST registration & contracts
• reconstruct ITC binder (parts, tools, PPE, vehicle)
• reconcile logs → invoices → deposits → GST filings
• justify part wastage & replacement cycles
• correct GST/HST rates for QC/ON/Atlantic repairs
• rebuild imported-tool self-assessment entries
• prepare CPA-standard CRA audit binder
• negotiate elimination of penalties & interest

Learning insight: These audits are won with strong job logs + part-to-job reconciliation + subcontractor compliance.

Common CRA Findings in Appliance Repair Audits

• GST/HST not charged on repair or diagnostics
• part charges unreported
• subcontract invoices invalid
• ITCs denied due to missing receipts
• imported tools missing tax
• bank deposits > reported income
• emergency service calls not invoiced
• travel/pickup delivery untaxed
• WhatsApp job chats not invoiced

Learning insight: CRA’s top reassessment driver: deposit + e-transfer underreporting.

Real-World Results

• A washer/dryer repair tech avoided a $234,000 reassessment after Mackisen CPA rebuilt tool & parts documentation.
• A mobile fridge repair business reversed a $147,000 ITC denial with complete PPE + equipment receipts.
• A stove/oven diagnosis technician eliminated penalties by applying proper GST to service calls and parts.
• A multi-unit building repair contractor cleared CRA findings via deposit → invoice → log reconciliation.

Learning insight: CPA-organized documentation shuts down CRA assumptions immediately.

SEO Optimization & Educational Value

Primary keywords: GST/HST appliance repair audit, CRA appliance technician audit, taxable repair services Canada, Mackisen CPA Montreal
Secondary keywords: part ITC denial, subcontract appliance tech audit, diagnostic fee GST, emergency repair GST rules

Learning insight: Huge SEO demand exists due to the volume of small appliance techs in Canada.

Why Mackisen CPA Montreal

With 35+ years defending appliance repair technicians, installers & diagnostic specialists, Mackisen CPA Montreal is Québec’s #1 authority in GST/HST appliance-sector audits.
We understand job workflows, parts turnover, subcontractor risks & CRA audit tactics deeply.

Learning insight: Appliance-repair audits require documentation precision, part-usage reconciliation, subcontractor discipline & GST accuracy — all strengths of Mackisen CPA.

Call to Action

If CRA is auditing your appliance repair, diagnostic service, installation work, or subcontract helper, contact Mackisen CPA Montreal immediately:

📞 514-276-0808
📧 info@mackisen.com
🌐 mackisen.com

Learning Conclusion:

A CRA GST/HST Appliance Repair Audit tests taxable labour, parts documentation, subcontractor GST compliance, ITC evidence & revenue reconciliation.
Mackisen CPA Montreal ensures full audit protection.