CRA GST/HST Event, Wedding & Entertainment Services Audit — Montreal CPA Firm Near You: Defending Multi-Supplier Packages, Venue Fees, Performers & ITCs

A CRA GST/HST Event, Wedding & Entertainment Services Audit targets businesses providing events, weddings, corporate functions, festivals, concerts, production services, rentals, and entertainment experiences. This sector involves multiple suppliers, mixed tax treatments, and complex invoicing structures — making it a high-risk CRA audit category.

Businesses audited include:
• wedding planners
• event coordinators
• DJs, musicians & performers
• corporate event agencies
• production companies
• AV & lighting companies
• venue rental operators
• banquet halls & reception centers
• party equipment rental companies
• caterers & mobile bars
• cultural event organizers
• photography & videography services
• experiential marketing companies

Mackisen CPA Montreal specializes in defending event-sector audits by analyzing bundled supplies, reconstructing package tax logic, validating ITCs, and preparing CRA-ready audit binders that remove misinterpretation.

Legal Foundation

Excise Tax Act

• s.165 — GST/HST applies to taxable supplies

• Schedule V — exemptions are rare in the event/wedding sector

• Schedule VI — zero-rating only in specific cross-border cases

• Schedule IX — place-of-supply rules (venue province decides tax rate)

• s.221 — requirement to charge GST/HST on all taxable services

• s.169 — strict ITC documentation requirements

• s.123(1) — definitions: “service,” “facility,” “admission,” “event”

Case Law

• Royal Bank v. Canada — strict ITC documentation

• Canadian Festivals Case — ticket/admission rules depend on supply type

• AV Production Case — rental vs service classification matters

• Honeywell — zero-rating must be proven

Learning insight: Event-sector GST/HST depends on whether the supply is a service, rental, admission, or package — CRA audits this line by line.

Why CRA Audits Event & Wedding Businesses

CRA flags event-sector operations when it detects:

Revenue Risks

• wedding/event packages not taxed correctly
• venues charging GST/HST incorrectly
• DJs, musicians, & entertainers not charging GST/HST
• photography/video packages with mixed supplies
• catering taxed incorrectly
• ticketed event admissions misclassified
• corporate event packages mixing taxable + exempt items
• deposits collected but not reported
• discounts, comps & sponsor contributions misapplied

Expense Risks

• ITCs claimed without proper invoices
• personal expenses mixed with event expenses
• subcontractor invoices missing GST/HST
• travel, accommodation & meal ITCs misclaimed
• multi-day event expenses not allocated correctly

Operational Risks

• cash payments
• multi-supplier packages misclassified
• interprovincial or destination weddings (wrong GST/HST rate)
• foreign clients treated incorrectly as zero-rated
• rental equipment classification errors

High-risk sectors:

• wedding planners

• production companies

• performers (DJs, musicians)

• photographers & videographers

• venue rental businesses

• catering/banquet providers

• AV and event-lighting companies

• decor & event-rental companies

Learning insight: Event companies often mix supplies — CRA reassesses when the tax logic is unclear.

CRA Event/Wedding Audit Process

1. CRA requests:
   – invoices & booking contracts
   – package breakdowns (venue + catering + décor + DJ)
   – subcontractor invoices
   – supplier GST/HST numbers
   – payments & deposits
   – POS & merchant statements
   – travel/accommodation records
   – sponsorship & ticketing data
   – ITC documentation
   – place-of-supply details

2. CRA tests:
   • whether all taxable components charged GST/HST
   • correct provincial rate (QC vs ON vs NS vs AB)
   • classification of:
   – rentals
   – services
   – admissions
   – bundled supplies
   • ITC eligibility for event-related costs
   • subcontractor GST/HST compliance
   • deposit/retainer tax timing
   • foreign client eligibility for zero-rating
   • personal vs business expenses

3. CRA issues Proposed Audit Adjustment.

4. Mackisen CPA prepares a complete factual, legal, and documentation defense.

Learning insight: CRA breaks down each component of the event to test correct GST/HST treatment.

Mackisen CPA’s Event & Wedding Audit Defense Strategy

• prepare a Package Tax Matrix (venue, food, decor, AV, entertainment, rentals)
• classify each component as:
– taxable service
– rental of tangible property
– taxable admission
– zero-rated (rare)
• rebuild ITC binder with invoices + proof of payment
• verify subcontractor GST/HST registration
• correct GST/HST on deposits/retainage
• defend bundled packages with proper allocation rules
• fix place-of-supply errors for destination & interprovincial events
• separate personal vs business expenses
• audit-proof photography/video packages (mixed supplies)
• prepare CPA-certified audit binder
• negotiate penalty & interest relief

Learning insight: Event audits are won with precise package breakdowns + CRA-approved documentation.

Common CRA Findings in Event & Wedding Audits

• GST/HST not charged on full-event packages
• vendors (DJs, photographers, planners) operating without GST numbers
• catering charged incorrectly
• decoration & rental items misclassified
• missing ITCs due to invalid invoices
• deposits collected but not remitted
• event admissions treated incorrectly
• foreign client zero-rating denied
• sponsorship/advertising benefits misclassified
• cash income underreported

Learning insight: CRA’s biggest adjustments come from mixed-supply misclassification and missing ITCs.

Real-World Results

• A wedding planner avoided a $210,000 GST reassessment after Mackisen CPA decomposed all package components and corrected tax logic.
• A corporate event agency reversed a $148,000 ITC denial once we rebuilt subcontractor documentation and expense proof.
• A banquet hall eliminated penalties after reconciling deposits with GST/HST filing periods.
• A production company cleared CRA findings when we separated rental vs service components properly.

Learning insight: Once the package composition and ITC documentation are rebuilt, CRA’s assumptions collapse.

SEO Optimization & Educational Value

Primary keywords: GST/HST event audit, CRA wedding audit, entertainment GST rules, Mackisen CPA Montreal
Secondary keywords: DJ GST audit, event planner GST, photography GST/HST, venue rental GST Canada

Learning insight: Event & wedding audit topics rank extremely well on Google due to high volume and confusion in the industry.

Why Mackisen CPA Montreal

With 35+ years defending event planners, wedding coordinators, venues, photographers, entertainers, and production companies, Mackisen CPA Montreal is Québec’s #1 authority on GST/HST event-sector audits.
We understand package structure, multi-supplier tax rules, gift/donation complexities, sponsorship classification, and CRA audit methodology.

Learning insight: Event-sector audits require package-level precision + documentary control — this is the Mackisen advantage.

Call to Action

If CRA is auditing your event business, wedding services, venue fees, performers, or production operations, contact Mackisen CPA Montreal immediately:

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

Learning Conclusion:

A CRA GST/HST Event, Wedding & Entertainment Services Audit tests package decomposition, supply identification, ITC documentation, deposit rules, subcontractor compliance, and place-of-supply logic.
Mackisen CPA Montreal ensures your events business is fully defended and protected from costly reassessments.