CRA GST/HST Chimney Cleaning, Fireplace Installation & Dryer Vent Service Audit — Montreal CPA Firm Near You: Defending Taxable Labour, Equipment, Safety Inspections & ITCs

A CRA GST/HST Chimney, Fireplace & Ventilation Service Audit targets businesses providing:

• chimney sweeping & creosote removal
• wood-burning appliance cleaning
• gas fireplace installation & servicing
• chimney cap installation
• liner installation & repair
• masonry chimney restoration
• dryer vent cleaning
• duct/vent maintenance related to fireplaces
• roof-access cleaning services
• safety inspections & home-insurance compliance inspections

CRA audits this sector heavily because it involves:

• 100% taxable labour & installation, no exemptions
• dangerous-goods equipment with large ITCs
• subcontractor helpers (many unregistered for GST/HST)
• seasonal spikes in cleaning & service calls
• multi-province winter service routes
• cash/e-transfer jobs without proper invoices

Mackisen CPA Montreal specializes in defending chimney & fireplace audits through job-by-job reconstruction, subcontractor validation, equipment ITC defence, and CRA-ready audit binders.

Legal Foundation

Excise Tax Act

• s.165 — ALL chimney sweeping, fireplace installation, dryer vent cleaning & safety inspections are fully taxable

• s.221 — businesses must collect GST/HST

• s.169 — strict ITC documentation requirements

• s.141.01 — mixed-use vehicle & equipment allocation

• Schedule IX — GST/HST rate based on location where work occurs

• s.123(1) — “installation,” “cleaning,” “maintenance,” “inspection,” “tangible property”

Case Law

• CGI v. Canada — place-of-supply determined by service location

• Royal Bank v. Canada — ITCs denied if invoices incomplete

• Northwest Company Inc. — supplier invoices must meet all statutory requirements

• CRA rulings: chimney cleaning, fireplace work, and vent services are fully taxable, no exemptions.

Learning insight: Even safety inspections required by insurance companies are taxable, not exempt.

Why CRA Audits Chimney, Fireplace & Vent Contractors

Revenue Risks

• GST/HST not charged on cleaning, sweeping, or inspections
• installation work (fireplace, caps, liners) not taxed correctly
• emergency call-out fees missing GST
• seasonal high-volume months not matching GST returns
• cash/e-transfer jobs underreported
• out-of-province cottage/cabin work misrated
• service-call/travel fees not taxed
• fireplace repair parts not taxed
• invoices missing critical information

Subcontractor Risks

• subcontracted chimney sweeps without GST/HST numbers
• helpers paid cash without invoices
• invalid or incomplete subcontractor documentation
• T4A/T5018 mismatches
• employee vs subcontractor classification issues

ITC Risks

• missing invoices for:
– chimney brushes, rods, vacuums
– ladders, roof-access gear
– fireplace parts (blowers, glass, gaskets)
– liner kits, caps & masonry repair materials
– safety gear (PPE)
– truck & vehicle expenses
• imported tools missing s.218 GST self-assessment
• personal-use equipment claimed as business
• off-season expenses misallocated

Operational Risks

• incomplete job logs
• safety-inspection reports not matching invoices
• seasonal volume inconsistencies
• no records for roof access or vent cleaning
• mismatched supplier purchases vs service volume

High-risk operators:

• chimney sweeps

• fireplace installers

• gas technicians

• dryer-vent cleaners

• multi-service heating & ventilation contractors

Learning insight: CRA assumes underreported revenue + invalid ITCs + subcontractor non-compliance unless proven otherwise.

CRA Chimney & Fireplace Service Audit Process

1. CRA requests:
   – invoices (labour, installation, cleaning, travel)
   – subcontractor invoices + GST numbers
   – equipment & tool receipts
   – safety-inspection reports
   – bank & e-transfer statements
   – vehicle mileage logs
   – ITC spreadsheets
   – import documents (for tools & liner kits)
   – daily/weekly job logs
   – supplier invoices (fireplace parts, chimney supplies)

2. CRA tests:
   • GST/HST charged for ALL cleaning & installation activities
   • place-of-supply accuracy (QC/ON/Atlantic)
   • subcontractor GST/HST compliance
   • ITC documentation completeness
   • job logs ↔ invoices ↔ deposits consistency
   • imported-tool self-assessment
   • personal vs business-use tools
   • seasonal revenue reporting

3. CRA issues a Proposed Audit Adjustment.

4. Mackisen CPA prepares a full legal & documentary defence.

Learning insight: CRA reconstructs entire service seasons based on supply purchases + job logs + deposits.

Mackisen CPA’s Chimney/Fireplace Audit Defense Strategy

• build a Chimney & Fireplace Service Tax Matrix (cleaning, installation, repairs, travel, parts)
• rebuild proper GST/HST-compliant invoices
• validate subcontractor GST/HST numbers
• reconstruct ITC binder for tools, ladders, parts & vehicle expenses
• defend seasonal & cottage-area jobs using rate logic
• reconcile job logs → invoices → deposits → GST returns
• defend vehicle ITCs with mileage & business-use documentation
• rebuild imported-tool self-assessment
• prepare a CRA-standard CPA-certified audit binder
• negotiate removal of penalties & interest

Learning insight: These audits are won with job-by-job reconstruction + subcontractor compliance + ITC integrity.

Common CRA Findings in Chimney/Fireplace Audits

• GST/HST not charged on:
– chimney sweeping
– dryer vent cleaning
– fireplace installation
– liner installation
– emergency call-outs
• subcontractor invoices invalid
• ITCs denied due to missing documents
• imported tools/parts missing GST self-assessment
• bank deposits > reported revenue
• incorrect GST/HST rates for remote/out-of-province jobs
• personal tools claimed
• missing job logs

Learning insight: Top reassessments arise from invoice defects + ITC gaps + subcontractor errors.

Real-World Results

• A chimney-cleaning company avoided a $186,000 reassessment after Mackisen CPA rebuilt job logs & subcontractor records.
• A fireplace installer reversed a $128,000 ITC denial via complete parts/tool invoices.
• A dryer-vent cleaning service eliminated penalties by correcting call-out fee GST logic.
• A cottage-area seasonal contractor cleared CRA findings through complete calendar → deposit → GST reconciliation.

Learning insight: CRA backs down when confronted with CPA-organized, job-mapped evidence.

SEO Optimization & Educational Value

Primary keywords: GST/HST chimney cleaning audit, CRA fireplace installation audit, dryer vent GST rules, Mackisen CPA Montreal
Secondary keywords: chimney ITC denial, subcontractor GST audit, fireplace parts GST, vent-cleaning GST/HST rules

Learning insight: HVAC-adjacent and chimney-service audits rank extremely well in SEO.

Why Mackisen CPA Montreal

With 35+ years defending chimney sweeps, fireplace installers, and dryer-vent technicians, Mackisen CPA Montreal is Québec’s top authority in GST/HST service-trade audits.
We understand seasonal service patterns, equipment, subcontractors, and CRA methodology deeply.

Learning insight: Chimney/fireplace audits require evidence precision, subcontractor verification, and ITC discipline — all strengths of Mackisen CPA.

Call to Action

If CRA is auditing your chimney cleaning, fireplace installation, dryer vent service, or safety inspection business, contact Mackisen CPA Montreal immediately:

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

Learning Conclusion:

A CRA GST/HST Chimney & Fireplace Service Audit tests labour taxability, parts classification, subcontractor compliance, ITC documentation, and seasonal revenue accuracy.
Mackisen CPA Montreal ensures your entire service operation is fully defended and protected from reassessments.