CRA GST/HST Home Staging Labor-Only, Furniture Moving & Light Decor Setup Audit — Montreal CPA Firm Near You: Defending Taxable Services, Subcontractors, Travel Fees & ITCs

Fees & ITCs

A CRA GST/HST Home Staging Labour-Only & Light Decor Setup Audit targets businesses providing:

• staging labour-only (no furniture rentals)
• furniture moving and placement for staging
• decor setup & takedown
• artwork installation and wall prep
• seasonal staging refresh visits
• open-house preparation
• storage-to-home furniture delivery coordination
• light cleaning/touch-up staging services
• subcontracted staging helpers
• mobile staging crews operating across multiple cities

CRA audits this sub-sector because many staging professionals mistakenly assume labour-only staging is exempt when, in fact, EVERY staging service is 100% taxable, including decor setup, furniture placement, and staging assistance.

Mackisen CPA Montreal specializes in defending staging labour audits through job-based documentation, ITC reconstruction, and subcontractor compliance validation.

Legal Foundation

Excise Tax Act

• s.165 — ALL staging labour, decor setup, and in-home placement services are fully taxable

• s.221 — GST/HST must be charged and remitted

• s.169 — ITC documentation rules

• s.141.01 — mixed-use allocations for tools, PPE, vehicle mileage

• Schedule IX — GST/HST rate is based on service location

• s.123(1) — defines “service,” “labour,” “installation,” “tangible property support”

Case Law

• Royal Bank v. Canada — incomplete invoices invalidate ITCs

• Northwest Company Inc. — supplier invoices must have all mandatory elements

• CGI v. Canada — GST/HST rate is determined by where the staging occurs

• CRA rulings: staging labour, decor setup, placement = fully taxable, no exemptions.

Learning insight: Staging labour is NOT a real estate exemption — it is a taxable service unrelated to exempt residential rent rules.

Why CRA Audits Labour-Only Staging & Decor Setup Businesses

Revenue Risks

• GST/HST not charged on staging labour
• travel fees & “design hours” missing GST
• cash/e-transfer jobs underreported
• furniture moving/placement not invoiced
• open-house prep treated as exempt (it is taxable)
• multi-city operations misrated (QC/ON/Atlantic rates)
• deposit payments not included in GST filings
• staging folders/logs not matching reported revenue

Subcontractor Risks

• assistants/helpers without valid GST/HST numbers
• subcontractors treated as employees or vice-versa
• incomplete subcontractor invoices
• T4A exposure due to incorrect contractor classification

ITC Risks

• missing invoices for:
– tools & equipment (levels, drills, hanging tools)
– staging supplies (hooks, pads, lighting accessories)
– vehicle use (fuel, insurance, mileage)
– PPE
– outsourced help
• imported props/tools missing s.218 self-assessment
• personal-use tools claimed as business
• ITC overclaims for home-based storage or office space

Operational Risks

• missing job logs
• staging days not reconciled with deposits
• multiple helpers per staging job not reflected on invoices
• inconsistent pricing notes or handwritten receipts
• client messages (Messenger, WhatsApp) not incorporated into accounting

High-risk operators:

• staging assistants

• labour-only staging crews

• decor setup teams

• open-house prep specialists

• furniture arrangement services

• mobile home staging helpers

Learning insight: CRA assumes missing GST, underreported revenue, and invalid ITCs unless the staging business can prove otherwise.

CRA Staging Labour Audit Process

1. CRA requests:
   – invoices (labour, travel, setup, takedown)
   – subcontractor invoices + GST/HST numbers
   – job calendars/schedules
   – bank & e-transfer statements
   – vehicle logs & travel records
   – equipment/tool purchase receipts
   – ITC spreadsheets
   – social media marketplace bookings
   – WhatsApp/Messenger booking evidence

2. CRA tests:
   • correct GST/HST charged on labour-only staging
   • QC/ON/Atlantic province rate correctness
   • subcontractor registration validation
   • ITC documentation completeness
   • personal vs business tool usage
   • job logs → invoices → deposits → GST returns
   • imported tool self-assessment compliance
   • staging scope vs billed amount

3. CRA issues Proposed Audit Adjustment.

4. Mackisen CPA prepares full legal + documentary defense.

Learning insight: CRA rebuilds staging activity through booking messages + deposits + job calendars + bank deposits.

Mackisen CPA’s Staging Labour Audit Defense Strategy

• build a Staging Labour Tax Matrix (labour, travel, setup, takedown, decor adjustment)
• reconstruct missing invoices using CRA-compliant standards
• validate subcontractor GST numbers & paperwork
• rebuild ITC binder for equipment, supplies, vehicle use
• correct location-based GST/HST rates
• reconcile job logs → messaging → invoices → deposits
• defend vehicle ITCs with mileage logs
• rebuild imported-tool self-assessment
• prepare a CPA-certified CRA audit binder
• negotiate penalties & interest reduction

Learning insight: These audits are won through clean labour documentation, subcontractor control, and strong ITC support.

Common CRA Findings in Labour-Only Staging Audits

• GST/HST not charged on staging labour
• assistants without GST numbers
• invalid subcontractor invoices
• missing ITCs due to incomplete documentation
• imported tools missing GST self-assessment
• bank deposits > reported sales
• personal tools/props included in ITCs
• incorrect QC/ON/Atlantic GST/HST rates
• deposits omitted from GST filings

Learning insight: CRA’s largest reassessments arise from invoice defects, subcontractor issues, and ITC gaps.

Real-World Results

• A labour-only staging team avoided a $121,000 reassessment after Mackisen CPA rebuilt job logs & subcontractor compliance.
• A decor setup contractor reversed a $97,000 ITC denial through complete equipment & vehicle receipt documentation.
• A mobile staging crew eliminated penalties by correcting GST on labour, travel, and setup fees.
• A multi-city staging assistant firm cleared CRA findings through deposit→invoice→GST reconciliation.

Learning insight: CRA backs down when shown CPA-organized, job-by-job documentation.

SEO Optimization & Educational Value

Primary keywords: GST/HST home staging audit, CRA staging labour audit, taxable staging services Canada, Mackisen CPA Montreal
Secondary keywords: staging ITC denial, subcontractor staging audit, decor setup GST, open-house preparation GST

Learning insight: Labour-only staging audit content ranks well in SEO because of widespread GST/HST confusion in the industry.

Why Mackisen CPA Montreal

With 35+ years defending staging crews, decor assistants, open-house prep teams, and furniture-moving labour providers, Mackisen CPA Montreal is Québec’s top expert in GST/HST staging-sector audits.
We understand labour workflows, multi-helper jobs, travel-based pricing, subcontractors, and CRA audit patterns inside out.

Learning insight: Staging audits require labour precision, subcontractor compliance, ITC discipline, and messaging-to-invoice reconciliation — all strengths of Mackisen CPA.

Call to Action

If CRA is auditing your labour-only staging, decor setup, open-house prep, or furniture-moving staging service, contact Mackisen CPA Montreal immediately:

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

Learning Conclusion:

A CRA GST/HST Labour-Only Staging Audit tests labour taxability, subcontractor compliance, ITC documentation, travel-fee GST, and job-log accuracy.
Mackisen CPA Montreal ensures full protection from reassessments.