CRA GST/HST Fitness Instructor, Yoga Teacher & Personal Trainer Audit — Montreal CPA Firm Near You: Defending Taxable Classes, Online Coaching, Packages & ITCs

A CRA GST/HST Fitness Instructor & Wellness Training Audit targets:

• independent fitness instructors
• yoga & pilates teachers
• group fitness leaders
• Zumba/HIIT/bootcamp trainers
• personal trainers (in-person & online)
• mobility/stretch therapists (non-regulated)
• meditation/mindfulness instructors
• sports coaches & athletic trainers
• hybrid fitness–nutrition programs
• online fitness subscription platforms

This sector is aggressively audited because almost all fitness instruction is fully taxable, but many instructors mistakenly believe classes are exempt “health services.” CRA also targets the industry because it is cash/e-transfer heavy, uses online platforms, and often involves subcontracted instructors with missing GST/HST numbers.

Mackisen CPA Montreal specializes in defending fitness-sector audits by clarifying taxable services, rebuilding ITCs, and producing CRA-ready audit binders.

Legal Foundation

Excise Tax Act

• s.165 — ALL fitness, yoga, pilates, and exercise instruction is fully taxable

• Schedule V (Exempt Services) — applies ONLY to regulated health professions (physio, chiro, RMT).
  Yoga, fitness, dance, and personal training are NOT exempt.

• s.221 — instructor must collect GST/HST

• s.169 — ITCs must meet strict documentation standards

• Schedule IX — place-of-supply rules for online & multi-province classes

• s.123(1) — definitions: “instruction,” “service,” “fitness service”

Case Law & CRA Rulings

• Fitness & yoga classes = fully taxable

• Meditation/mindfulness = taxable

• Online fitness coaching = taxable

• Nutrition coaching = taxable

• Royal Bank v. Canada — incomplete invoices invalidate ITCs

• City of Calgary v. Canada — client location determines GST/HST rate

Learning insight: Unless the instructor is a regulated health professional under provincial law, all instruction is taxable.

Why CRA Audits Fitness Instructors & Trainers

CRA flags fitness instructors when it detects:

Revenue Risks

• GST/HST not charged on class packages
• private training lessons incorrectly treated as exempt
• online classes not taxed
• Zoom/Instagram subscription revenue unreported
• class-pack or membership packages unaccounted for
• cash/e-transfer revenue mismatches
• retreat/workshop fees missing GST/HST
• corporate training contracts taxed incorrectly
• multi-province students charged wrong GST/HST

Subcontractor Risks

• substitute instructors not charging GST/HST
• invalid instructor GST numbers
• “contractor” instructors acting like employees (T4A risk)
• incomplete subcontractor invoices

ITC Risks

• missing invoices for:
– mats, blocks, weights, equipment
– studio rental fees
– software (Zoom, Trainerize, Mindbody, Calendly)
– marketing & photography
– music licensing & subscription apps
– apparel/uniforms
• imported fitness software with missing s.218 self-assessment
• large ITCs for personal equipment
• home-studio expenses overstated

Operational Risks

• class attendance logs inconsistent with revenue
• cancellations & no-shows not reconciled
• package tracking lists missing
• online platform payouts not reflected in GST filings

High-risk categories:

• online coaches

• pilates & yoga teachers

• personal trainers (mobile/in-home)

• gym-independent contractors

• bootcamp & HIIT trainers

• sports coaches with hybrid packages

Learning insight: CRA assumes underreported revenue + invalid ITCs + exemption misuse, especially in yoga & wellness fields.

CRA Fitness Instructor Audit Process

1. CRA requests:
   – class calendars & schedules
   – private training logs
   – invoices & receipts
   – e-transfer logs
   – Stripe/PayPal/Square statements
   – online platform payouts (Zoom, Thinkific, Trainerize, Patreon)
   – subcontractor invoices & GST numbers
   – equipment & supply invoices
   – studio rental agreements
   – ITC spreadsheets
   – promotional package descriptions

2. CRA tests:
   • taxable vs exempt classification
   • correct GST/HST rate for out-of-province clients
   • ITC documentary completeness
   • revenue completeness vs deposits
   • subcontractor GST registration
   • personal vs business equipment
   • correct GST on retreats/workshops
   • online-class tax treatment

3. CRA issues Proposed Audit Adjustment.

4. Mackisen CPA prepares a complete legal-documentary defense.

Learning insight: CRA examines class logs, deposits, and online platforms to trace full revenue.

Mackisen CPA’s Fitness Audit Defense Strategy

• create a Fitness Supply Tax Matrix (in-person, online, packages, workshops)
• reconstruct invoices with correct GST/HST coding
• verify subcontractor GST/HST numbers
• rebuild ITC binder (equipment, studio expenses, software, travel)
• reconcile class logs → invoices → deposits → GST filings
• identify exempt vs taxable (usually 99% taxable)
• defend home-studio & equipment allocations
• correct province-of-client rate logic
• prepare CRA-ready CPA-certified audit binder
• negotiate penalty & interest relief

Learning insight: Fitness instructors win audits using clean logs + valid invoices + correct GST classification.

Common CRA Findings in Fitness & Wellness Instructor Audits

• GST/HST not charged on:
– class packs
– private lessons
– online coaching
– retreats/workshops
– nutrition add-ons
• subcontractor invoices invalid or missing
• ITCs denied for personal equipment
• bank deposits exceed reported revenue
• out-of-province tax rates incorrect
• online sales not included in GST filings
• imported training apps missing self-assessment

Learning insight: The largest reassessments come from invoice errors, missing GST on packages, and invalid ITCs.

Real-World Results

• A Montreal yoga instructor avoided a $162,000 reassessment after Mackisen CPA classified all taxable vs non-taxable items and rebuilt receipts.
• A personal trainer reversed a $94,000 ITC denial with complete documentation for equipment and software.
• A corporate fitness coach eliminated penalties by correcting multi-province tax rules.
• A hybrid online/in-person instructor cleared CRA findings through full reconciliation of online-platform payouts.

Learning insight: CRA retreats when faced with CPA-organized, class-by-class evidence.

SEO Optimization & Educational Value

Primary keywords: GST/HST fitness instructor audit, CRA yoga audit, personal trainer GST rules, Mackisen CPA Montreal
Secondary keywords: online coaching GST Canada, fitness ITC denial, subcontractor instructor audit, wellness GST rules

Learning insight: Fitness GST audits generate huge SEO interest due to industry confusion and online-class tax issues.

Why Mackisen CPA Montreal

With 35+ years defending fitness instructors, wellness coaches, yoga/pilates teachers, and online coaching businesses, Mackisen CPA Montreal is Québec’s #1 authority in GST/HST audits for the fitness sector.
We understand class scheduling, payment platforms, subcontractor structures, and CRA methodology in depth.

Learning insight: Fitness audits require classification precision + documentation discipline + platform reconciliation — all strengths of Mackisen CPA.

Call to Action

If CRA is auditing your fitness instruction, yoga classes, personal training, online coaching, or studio-related services, contact Mackisen CPA Montreal immediately:

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

Learning Conclusion:

A CRA GST/HST Fitness Instructor Audit tests taxable service classification, revenue completeness, subcontractor compliance, equipment ITCs, and online platform payouts.
Mackisen CPA Montreal ensures your instruction business is fully defended from costly reassessments.