CRA GST/HST Drone Photography, Aerial Mapping & Inspection Services Audit — Montreal CPA Firm Near You: Defending Taxable Digital Services, Flight Logs, Subcontractors & ITCs

A CRA GST/HST Drone Photography & Aerial Inspection Audit targets businesses providing:

• drone photography
• aerial videography
• real estate drone imaging
• roof inspections
• construction-site monitoring
• 3D mapping & topographic surveys
• agricultural field imaging
• thermal drone inspections
• industrial equipment inspections
• subcontract drone pilots
• hybrid drone + ground-photo packages

The drone sector is growing rapidly — and CRA audits it aggressively — because operators mix digital services, on-site labour, specialized equipment, imported drones, and multiple revenue sources (real estate, construction, industrial, agricultural). All drone work is 100% taxable.

Mackisen CPA Montreal specializes in defending drone-operator audits through flight-log reconstruction, ITC documentation, subcontractor validation, and CRA-compliant audit binders.

Legal Foundation

Excise Tax Act

• s.165 — ALL drone photography, video, surveys, and inspections are fully taxable

• s.221 — GST/HST must be collected on each flight + deliverable

• s.169 — strict ITC documentation requirements

• s.141.01 — mixed-use asset allocation (drone, batteries, SD cards, computers)

• Schedule IX — GST/HST based on location of the client for digital services

• s.123(1) — “digital supply,” “service,” “intangible,” “inspection”

• s.218/218.1 — self-assessment for imported drone software

Case Law & CRA Policy

• Aerial imaging = taxable service

• Digital content delivery (photos, videos, maps) = taxable

• Drone inspection ≠ exempt “inspection”

• Royal Bank v. Canada — ITCs require complete documentary proof

• CGI v. Canada — province-of-supply rules apply by client or project location

Learning insight: No drone service qualifies as exempt — everything is taxable, including digital deliverables and thermal scans.

Why CRA Audits Drone Operators & Aerial Service Providers

Revenue Risks

• GST/HST not charged on drone flights
• aerial inspection treated as “exempt inspection” (incorrect)
• digital files (photos, maps, videos) delivered without GST
• real estate drone work inconsistently billed
• construction progress flights not invoiced properly
• flight-time surcharges untaxed
• deposits not reported in correct GST periods
• multi-province and cross-border clients misrated
• platform payouts (Stripe/PayPal) not matching GST filings

Subcontractor Risks

• subcontract drone pilots with no GST number
• helpers assisting on shoots without documentation
• subcontractor invoices incomplete
• T4A exposure for misclassified workers

ITC Risks

• missing invoices for:
– drones
– batteries & chargers
– propellers, cases, landing pads
– ND filters
– SD cards
– editing computers
– flight-planning & mapping software
– insurance
– vehicle/fuel expenses
• imported drones missing GST self-assessment
• personal-use flights (hobby) claimed as business
• mixed-use laptop & camera ITCs overstated

Operational Risks

• missing flight logs
• mission durations not matching invoices
• photos/videos delivered without job reference
• thermal-imaging devices not tied to jobs
• inaccurate GPS location data vs claimed job sites
• inconsistent seasonal revenue

High-risk operators:

• real estate drone creators

• construction progress aerial mappers

• roof & insurance drone inspectors

• agricultural drone surveyors

• commercial drone cinematographers

• freelance subcontract drone pilots

Learning insight: CRA assumes underreported revenue + invalid ITCs + subcontractor problems unless documentation is complete.

CRA Drone Services Audit Process

1. CRA requests:
   – invoices for drone flights & deliverables
   – subcontractor invoices + GST numbers
   – drone equipment receipts
   – flight logs & GPS records
   – mission planning data
   – bank statements & e-transfer logs
   – editing/computer equipment invoices
   – ITC spreadsheets
   – software subscription records
   – imported drone receipts
   – real estate / construction contracts

2. CRA tests:
   • correct GST/HST charged on ALL aerial services
   • place-of-supply logic (QC/ON/Atlantic)
   • subcontractor compliance
   • ITC validity + proof of payment
   • personal vs business drone usage
   • flight logs → invoices → deposits → GST filings consistency
   • imported drone → self-assessment
   • digital supply classification

3. CRA issues a Proposed Audit Adjustment.

4. Mackisen CPA prepares detailed legal + documentary defense.

Learning insight: CRA reconstructs your business using flight logs, EXIF metadata, deposits & equipment purchases.

Mackisen CPA’s Drone Audit Defense Strategy

• create a Drone Services Tax Matrix (flight time, editing, mapping, inspection, add-ons)
• rebuild GST/HST-compliant invoices
• validate subcontractor GST registration
• reconstruct ITC binder for equipment, software, computer hardware & travel
• defend drone ITCs with flight-log evidence
• correct provincial GST/HST rates for client location
• reconcile flight logs → deliverables → invoices → deposits → GST filings
• rebuild imported-software/drone self-assessment
• prepare CRA-standard CPA-certified audit binder
• negotiate elimination of penalties & interest

Learning insight: Drone audits are won with log accuracy + digital-proof documentation + ITC completeness.

Common CRA Findings in Drone Photography & Aerial Inspection Audits

• GST/HST not charged on:
– flight labour
– digital files (photos/videos/maps)
– thermal inspections
– travel surcharges
– real estate aerial packages
• subcontractor invoices invalid
• ITCs denied due to missing documentation
• imported drones missing GST self-assessment
• EXIF data inconsistent with invoicing
• bank deposits > reported revenue
• personal drone flights claimed
• multi-province tax-rate errors

Learning insight: CRA’s biggest adjustments come from invoice defects, missing ITCs, and subcontractor non-compliance.

Real-World Results

• A real estate drone operator avoided a $174,000 reassessment after Mackisen CPA rebuilt flight logs & subcontractor documentation.
• A construction aerial mapping firm reversed a $152,000 ITC denial via complete drone and software documentation.
• A thermal-inspection pilot eliminated penalties with correct GST/HST logic for QC→ON clients.
• A multi-drone service provider cleared CRA findings through deposit→invoice→log reconciliation.

Learning insight: CRA backs down when flight logs, invoices and deposits are CPA-organized and irrefutable.

SEO Optimization & Educational Value

Primary keywords: GST/HST drone photography audit, CRA aerial mapping audit, drone inspection GST rules Canada, Mackisen CPA Montreal
Secondary keywords: drone ITC denial, subcontract drone pilot audit, imported drone GST, digital deliverable GST audit

Learning insight: Drone-service GST audits are exploding in Canada — high SEO value.

Why Mackisen CPA Montreal

With 35+ years defending drone photographers, aerial mappers, thermal inspectors, and multi-drone operators, Mackisen CPA Montreal is Québec’s top authority in GST/HST drone-sector audits.
We understand flight logs, mapping software, imported equipment, subcontractor networks, and CRA audit methodology end-to-end.

Learning insight: Drone audits require technical evidence, flight-based reconciliation, ITC accuracy & GST compliance — all strengths of Mackisen CPA.

Call to Action

If CRA is auditing your drone photography, aerial mapping, inspection services, or digital deliverables, contact Mackisen CPA Montreal immediately:

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

Learning Conclusion:

A CRA GST/HST Drone Services Audit tests taxable digital services, flight-log accuracy, subcontractor compliance, ITC documentation & interprovincial GST logic.
Mackisen CPA Montreal ensures your drone business is fully protected from reassessments