CRA GST/HST Home Appliance Repair, HVAC Repair & Maintenance Audit — Montreal CPA Firm Near You: Defending Labour, Parts, Service Calls, Subcontractors & ITCs

A CRA GST/HST Pest Control & Extermination Audit targets businesses offering:

• pest control (ants, bed bugs, roaches, mice, wasps, spiders)
• extermination services
• wildlife removal (raccoons, squirrels, skunks, birds)
• bed bug heat treatment
• rodent-proofing & exclusion work
• commercial pest management contracts
• quarterly/annual maintenance plans
• termite & structural pest treatment
• fumigation services
• emergency same-day call-outs

This industry is heavily audited because services are always taxable, involve mobile operations, significant chemical/equipment expenses, subcontractor workers, emergency cash jobs, and multi-visit contracts.

Mackisen CPA Montreal specializes in defending pest control audits through job-level documentation reconstruction, chemical purchase ITCs, subcontractor validation, and CRA-ready audit binders.

Legal Foundation

Excise Tax Act

• s.165 — all pest control & extermination services are fully taxable

• s.221 — mandatory GST/HST collection on service fees

• s.169 — ITC documentation rules

• s.141.01 — allocation rules for mixed-use tools/equipment

• Schedule IX — place-of-supply rules for multi-province work

• s.123(1) — “service,” “maintenance,” “extermination,” “tangible property”

Case Law

• Royal Bank v. Canada — ITCs require complete evidence

• Northwest Company Inc. — incomplete invoices invalidate ITCs

• CGI v. Canada — province where service occurs determines rate

• CRA rulings confirm: pest control is not an exempt health service → always taxable

Learning insight: There is no exemption for pest, wildlife, or extermination services — every job must include GST/HST.

Why CRA Audits Pest Control Companies

CRA flags pest-control operations when it detects:

Revenue Risks

• GST/HST missing on pest control service invoices
• emergency call-out fees not taxed
• rodent-proofing treated as exempt
• multi-visit contracts not fully reported
• cash/e-transfer payments underreported
• wildlife removal billed with missing GST
• commercial contracts inconsistent with remittances
• out-of-province residential jobs misrated

Subcontractor Risks

• subcontracted exterminators with invalid GST numbers
• helpers being paid as “contractors” without invoices
• T4A or T5018 inconsistencies
• misclassification of employees vs subcontractors

ITC Risks

• missing invoices for:
– pesticides & chemicals
– traps, nets, exclusion materials
– sprayers, foggers, bait stations
– PPE (gloves, respirators, suits)
– truck & vehicle costs
– ladders, lighting equipment
• ITCs overstated for personal-use tools
• incomplete proof of payment
• imported chemicals or sprayers missing s.218 self-assessment

Operational Risks

• job tickets not matching invoices
• wildlife captures vs release logs inconsistent
• bait-station refill logs undocumented
• emergency overnight jobs missing receipts
• chemicals purchased but not tied to jobs
• dispatch system logs vs revenue mismatches

High-risk operators:

• exterminators

• wildlife removal specialists

• bed bug treatment crews

• mobile pest control vans

• subcontracted pest technicians

• hotel/restaurant service contractors

Learning insight: CRA assumes underreported service revenue + invalid ITCs + subcontractor issues unless business records disprove it.

CRA Pest Control Audit Process

1. CRA requests:
   – invoices (service + material fees)
   – subcontractor invoices & GST numbers
   – job dispatch logs
   – bait station logs (for commercial clients)
   – chemical purchase invoices
   – equipment purchases
   – bank statements & e-transfer logs
   – ITC spreadsheets
   – wildlife capture/removal logs
   – multi-province job addresses
   – maintenance contract details

2. CRA tests:
   • GST/HST charged on labour, chemicals, call-outs
   • subcontractor GST registration validity
   • ITC documentation & proof of payment
   • revenue completeness (logs → deposits → GST filings)
   • personal vs business tool/equipment
   • province-of-supply rules (QC/ON/Atlantic)
   • multi-visit contracts mapped correctly

3. CRA issues Proposed Audit Adjustment.

4. Mackisen CPA prepares complete legal & documentary defense.

Learning insight: CRA audits this industry job-by-job and chemical-by-chemical.

Mackisen CPA’s Pest Control Audit Defense Strategy

• create a Pest Control Tax Matrix (labour, chemicals, call-out, exclusion materials)
• rebuild GST/HST-compliant invoices
• validate subcontractor GST/HST registration
• reconstruct ITC binder for chemicals, gear & equipment
• defend vehicle + mileage ITCs using logs
• correct QC/ON/Atlantic GST/HST tax rates
• reconcile job logs → invoices → deposits
• rebuild imported-chemical self-assessment (s.218)
• prepare CPA-certified CRA audit binder
• negotiate reduction of penalties & interest

Learning insight: Pest control audits are won with log accuracy + invoice integrity + ITC discipline.

Common CRA Findings in Pest Control Audits

• GST/HST not charged on:
– service labour
– chemicals/pesticides
– call-out fees
– emergency jobs
• subcontractor invoices missing GST/HST info
• ITCs denied for invalid invoices or personal tools
• bait materials misclassified
• cash/e-transfer revenue underreported
• imported sprayers not self-assessed
• multi-province jobs misbilled
• wildlife-services expenses undocumented

Learning insight: CRA’s largest adjustments arise from invoice defects + subcontractor issues + ITC gaps.

Real-World Results

• A Montreal extermination company avoided a $214,000 reassessment after Mackisen CPA rebuilt its job logs and subcontractor documentation.
• A wildlife removal business reversed a $133,000 ITC denial after reconstructing equipment and PPE invoices.
• A commercial pest management contractor eliminated penalties by correcting GST on multi-visit maintenance plans.
• A bed bug heat-treatment firm cleared CRA findings after proper chemical purchase documentation was produced.

Learning insight: CRA backs down when confronted with CPA-organized, evidence-driven documentation.

SEO Optimization & Educational Value

Primary keywords: GST/HST pest control audit, CRA extermination audit, wildlife removal GST rules, Mackisen CPA Montreal
Secondary keywords: ITC denial pest control, subcontractor GST audit, pesticide GST treatment, emergency call-out GST Canada

Learning insight: Pest control audits are a fast-growing audit segment — high SEO value.

Why Mackisen CPA Montreal

With 35+ years defending exterminators, wildlife removal teams, and commercial pest-control firms, Mackisen CPA Montreal is Québec’s #1 authority in GST/HST pest control audit defense.
We understand chemical usage, job logs, subcontractor structures, safety equipment, and CRA methodology in depth.

Learning insight: Pest control audits require operational understanding + tax logic + airtight documentation — all strengths of Mackisen CPA.

Call to Action

If CRA is auditing your pest control, extermination, or wildlife removal business, contact Mackisen CPA Montreal immediately:

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

Learning Conclusion:

A CRA GST/HST Pest Control Audit tests service taxability, chemical classification, subcontractor compliance, job logs, and ITC documentation.
Mackisen CPA Montreal ensures full protection and expert defense against reassessments.