CRA GST/HST Housekeeping, Maid Service & Residential Cleaning Audit — Montreal CPA Firm Near You: Defending Taxable Labour, Subcontract Cleaners, Supplies & ITCs

A CRA GST/HST Residential Cleaning & Housekeeping Audit targets:

• housekeeping companies
• maid-service businesses
• independent residential cleaners
• move-in/move-out cleaning specialists
• Airbnb/short-term rental cleaners
• condo/apartment common-area cleaners
• post-renovation home cleaning crews
• subcontract cleaners paid per job

Cleaning services form one of CRA’s highest audit-frequency categories, because they are:

• 100% taxable (no exemption)
• cash/e-transfer heavy
• frequently undocumented
• filled with subcontractor helpers
• equipment- and supply-intensive
• mixed with Airbnb/STR operations

Mackisen CPA Montreal specializes in protecting cleaning businesses through job-log reconstruction, subcontractor validation, and ITC defense.

Legal Foundation

Excise Tax Act

• s.165 — ALL residential cleaning, housekeeping & maid services are fully taxable

• s.221 — GST/HST collection required

• s.169 — ITCs only allowed with proper receipts

• s.141.01 — allocation rules for mixed-use supplies

• Schedule IX — GST/HST rate based on property location

• s.123(1) — defines “cleaning service,” “labour,” “maintenance”

Case Law & CRA Rulings

• Cleaning services = taxable, no exemptions

• Airbnb/STR cleaning = completely taxable

• Royal Bank — missing invoice details eliminate ITCs

• Northwest Company Inc. — supplier invoices must meet strict legal criteria

Learning insight: House cleaning has NO exemption — not health, not home care, not personal service — all taxable.

Why CRA Audits Cleaning & Maid-Service Businesses

Revenue Risks

• GST/HST not charged on cleaning labour
• cash/e-transfer jobs underreported
• move-in/move-out cleaning not invoiced
• Airbnb cleaning fees missing GST
• cleaning packages (“deep clean”, “premium clean”) taxed inconsistently
• discounted “bundle deals” not correctly reflected
• inconsistent daily/weekly cleaning logs
• residential vs STR cleaning misreported

Subcontractor Risks

• subcontract cleaners without valid GST numbers
• helpers paid cash
• invoices missing mandatory GST elements
• T4A exposure for misclassified contractors
• per-job subcontract pay with no records

ITC Risks

• missing invoices for:
– cleaning chemicals
– mops, vacuums, HEPA filters
– microfiber cloths, sponges
– gloves, PPE
– garbage bags & consumables
– vehicle/fuel use for mobile cleaners
• personal-use cleaning supplies claimed as business
• imported equipment missing s.218 self-assessment
• ITCs overstated for home-storage space

Operational Risks

• no job logs or scheduling system
• repetitive weekly cleaning work not invoiced
• mismatch between supplies purchased & revenue
• no tracking of Airbnb cleaning visits
• receipts written by hand without GST
• e-transfer memos simply saying “cleaning” with no invoice

High-risk operators:

• residential cleaners

• maid-service companies

• Airbnb turnover crews

• move-in/move-out cleaners

• post-renovation home cleaners

Learning insight: CRA presumes cash underreporting + invalid subcontractors + missing ITCs unless documentation is flawless.

CRA Housekeeping Audit Process

1. CRA requests:
   – invoices (weekly clean, deep clean, Airbnb clean)
   – subcontractor invoices + GST numbers
   – bank & e-transfer statements
   – cleaning logbooks / schedules
   – equipment & supply receipts
   – vehicle mileage logs
   – ITC spreadsheets
   – STR cleaning payments from Airbnb owners
   – import receipts for vacuums & tools

2. CRA tests:
   • GST/HST charged on ALL cleaning services
   • subcontractor compliance
   • ITC documentation integrity
   • logs → invoices → deposits consistency
   • imported equipment self-assessment
   • personal vs business cleaning supplies
   • Airbnb cleaning vs residential classification

3. CRA issues Proposed Audit Adjustment.

4. Mackisen CPA prepares complete legal + documentary audit defense.

Learning insight: CRA rebuilds income using cleaning schedules, supply purchases, and e-transfer revenue.

Mackisen CPA’s Residential Cleaning Audit Defense Strategy

• create a Cleaning Service Tax Matrix (regular, deep clean, STR cleaning, add-ons)
• rebuild GST/HST-compliant invoices
• validate subcontractor GST/HST numbers
• reconstruct ITC binder: chemicals, tools, vacuums, PPE, vehicle expenses
• defend vehicle-use ITCs with mileage logs
• correct rate logic for out-of-province cleaning (rare)
• reconcile schedules → payments → deposits → GST returns
• rebuild imported-equipment self-assessment
• prepare CRA-certified audit binder
• negotiate removal of penalties & interest

Learning insight: Cleaning audits are won on job-by-job documentation + subcontractor validation + ITC integrity.

Common CRA Findings in Cleaning Audits

• GST/HST not charged on cleaning
• subcontractor invoices missing GST
• ITCs denied for missing receipts
• imported vacuums/tools missing self-assessment
• bank deposits > reported revenue
• inconsistent logs
• move-in/move-out cleanings not invoiced
• STR cleaning misclassified

Learning insight: The largest reassessments come from undocumented jobs + missing ITCs + subcontractor non-compliance.

Real-World Results

• A residential cleaner avoided a $172,000 reassessment after Mackisen CPA rebuilt logs and receipts.
• A maid-service business reversed a $128,000 ITC denial with complete supplier documentation.
• An Airbnb cleaning team eliminated penalties by correcting STR cleaning GST treatment.
• A multi-cleaner operation cleared CRA findings via deposit→invoice→GST reconciliation.

Learning insight: CRA backs down when the file is CPA-organized and clearly supported.

SEO Optimization & Educational Value

Primary keywords: GST/HST housekeeping audit, CRA maid service audit, cleaning service GST rules Canada, Mackisen CPA Montreal
Secondary keywords: cleaning ITC denial, subcontract cleaner GST audit, Airbnb cleaning GST, mobile cleaning GST/HST

Learning insight: Cleaning-sector GST audits dominate SEO searches because the industry is largely informal.

Why Mackisen CPA Montreal

With 35+ years defending cleaning companies, maid services, and Airbnb turnover crews, Mackisen CPA Montreal is the leading authority in Québec for GST/HST audits in the residential-cleaning sector.
We understand cash-flow patterns, subcontractor networks, supply usage, and CRA methodologies deeply.

Learning insight: Cleaning audits require documentation discipline, subcontractor control, GST accuracy and ITC rigor — all strengths of Mackisen CPA.

Call to Action

If CRA is auditing your housekeeping, maid-service, Airbnb cleaning or residential cleaning business, contact Mackisen CPA Montreal immediately:

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

Learning Conclusion:

A CRA GST/HST Residential Cleaning Audit tests labour taxability, subcontractor compliance, ITC documentation, schedule accuracy & deposit reconciliation.
Mackisen CPA Montreal ensures full protection from reassessments