CRA GST/HST Meal Prep, Personal Chef & In-Home Cooking Service Audit — Montreal CPA Firm Near You: Defending Taxable Services, Grocery Reimbursements, Subcontract Cooks & ITCs

A CRA GST/HST Meal Prep & Personal Chef Audit targets:

• personal chefs
• meal-prep businesses (weekly meals delivered)
• in-home cooking services
• batch-cooking & freezer-meal specialists
• private chef services for families
• health-focused meal prep contractors
• athletes’ meal-prep services
• subscription meal-prep packages
• subcontract cooks or kitchen assistants

This sector is unique and highly audited because it mixes:

• fully taxable services
• partially taxable food/grocery inputs
• GST/HST on delivery fees
• cash/e-transfer payments
• recurring weekly subscriptions
• subcontract food-prep labour
• borderline misconceptions about “prepared food vs service”

Mackisen CPA Montreal specializes in structuring meal-prep businesses to withstand CRA audits with correct GST/HST classification, subcontractor compliance, and defensible ITCs.

Legal Foundation

Excise Tax Act

GST/HST outcomes depend on the nature of the supply:

1. Prepared Meals (Food Supply)

• Zero-rated only if the product qualifies as basic groceries (cold, non-prepared).

• Taxable if:
  – hot or warmed
  – sold as a ready-to-eat meal
  – individually packaged as prepared food
  – requiring minimal preparation
  – delivered as part of a service
  – subscription cooked meals

2. Personal Chef Services

• Always taxable (service, not food supply).

• Even if groceries are provided by the client.

3. Delivery Fees

• Always taxable when part of a taxable service.

Other ETA Rules

• s.165 — GST/HST applies unless explicitly zero-rated

• s.221 — supplier must charge GST/HST

• s.169 — ITCs require complete receipts

• Schedule IX — GST/HST depends on delivery location

• s.123(1) — defines “service,” “food,” “prepared meal,” “delivery supply”

Case Law

• Most prepared meals = taxable

• Meal-prep program = taxable service

• Personal chef labour = taxable

• Royal Bank v. Canada — ITC validity requires strict documentation

Learning insight: Meal prep is almost always taxable because it involves preparation (a service), not the sale of raw groceries.

Why CRA Audits Meal-Prep & Personal Chef Businesses

Revenue Risks

• GST/HST not charged on prepared meals
• chef labour classified as “food supply” instead of service
• weekly subscription meals not invoiced correctly
• e-transfer/cash payments underreported
• wrong GST application on meal delivery
• grocery reimbursements not documented
• in-home cooking sessions not invoiced
• deposits for weekly programs omitted
• multi-city deliveries misrated

Subcontractor Risks

• subcontract cooks not registered for GST
• assistants paid cash
• invalid subcontractor invoices
• worker misclassification (T4A exposure)
• commercial kitchen helpers lacking documentation

ITC Risks

• missing receipts for:
– groceries
– containers, labels, packaging
– cookware, knives, utensils
– PPE & gloves
– vehicle expenses
– food-safe cleaning supplies
• imported cooking tools missing GST self-assessment
• personal groceries mixed with business purchases
• home-kitchen ITCs overclaimed

Operational Risks

• no recipe logs or cost sheets
• no production logs for batch-cooking days
• unclear breakdown between groceries vs service component
• delivery routes not reconciled with payments
• multi-week meal plans not tied to invoices
• inconsistent e-transfer patterns

High-risk operators:

• home-based meal prep

• subscription meal-prep companies

• personal chefs with weekly clients

• athletes’ meal services

• subcontract-heavy kitchen teams

Learning insight: CRA examines service vs food classification, cash flow, and grocery documentation closely.

CRA Meal-Prep & Personal Chef Audit Process

1. CRA requests:
   – invoices (meals, labour, delivery, grocery reimbursements)
   – subcontractor cook invoices + GST numbers
   – grocery receipts + proof of payment
   – cooking logs / production logs
   – delivery logs / route logs
   – ITC spreadsheets
   – vehicle mileage records
   – bank & e-transfer data
   – import records for tools

2. CRA tests:
   • is the supply prepared food (taxable) or raw basic grocery (rarely applicable)?
   • was GST/HST applied to chef labour?
   • were delivery fees taxed?
   • are subcontractors GST-compliant?
   • are ITCs valid & supported?
   • do logs → invoices → deposits match?
   • is place-of-supply correct?
   • are imported utensils/tools self-assessed?

3. CRA issues Proposed Audit Adjustment.

4. Mackisen CPA prepares a complete legal + evidence-based defense.

Learning insight: CRA rebuilds your operation using grocery receipts, cooking logs, meal counts, delivery routes & deposits.

Mackisen CPA’s Meal-Prep & Chef Audit Defense Strategy

• create a Meal-Prep Tax Matrix (labour, meals, grocery reimbursement, delivery)
• rebuild GST/HST-compliant invoices for all weeks
• validate subcontractor GST numbers
• reconstruct ITC binder (groceries, tools, packaging, vehicle)
• separate personal groceries from business inputs
• reconcile cooking logs → meal counts → invoices → deposits
• correct GST/HST rates for cross-city deliveries
• rebuild imported-tool self-assessment
• prepare a CPA-certified CRA audit binder
• negotiate removal of penalties & interest

Learning insight: Meal-prep audits are won with clear classification, accurate logs, and grocery-to-invoice reconciliation.

Common CRA Findings in Meal-Prep Audits

• GST/HST not charged on prepared meals
• chef labour incorrectly treated as zero-rated grocery supply
• grocery receipts not maintained or mixed with personal items
• subcontractor cooks not GST-registered
• ITCs denied due to insufficient receipts
• imported kitchen tools missing GST
• bank deposits > reported revenue
• delivery fees not taxed
• meal counts inconsistent with payments

Learning insight: The largest reassessments stem from service misclassification + grocery documentation failures + e-transfer gaps.

Real-World Results

• A subscription meal-prep company avoided a $244,000 reassessment after Mackisen CPA rebuilt meal logs & grocery documentation.
• A personal chef reversed a $128,000 ITC denial through complete tool, grocery & vehicle expense receipts.
• A fitness-focused meal-prep service eliminated penalties by applying GST to delivery + prep fees.
• A multi-chef kitchen cleared CRA findings via deposit→invoice→cooking-log reconciliation.

Learning insight: CRA backs down when evidence is CPA-organized and supply classification is clear.

SEO Optimization & Educational Value

Primary keywords: GST/HST meal prep audit, CRA personal chef audit, taxable prepared meals Canada, Mackisen CPA Montreal
Secondary keywords: grocery ITC denial, chef subcontractor audit, meal delivery GST, prepared food GST rules

Learning insight: Meal-prep GST rules are among the most misunderstood in Canada, creating massive SEO demand.

Why Mackisen CPA Montreal

With 35+ years defending meal-prep services, personal chefs & home-based cooking contractors, Mackisen CPA Montreal is Québec’s #1 leader in GST/HST food-service audits.
We understand food-service classification, grocery documentation, subcontractor networks & CRA audit methodology thoroughly.

Learning insight: Meal-prep audits require service–food classification expertise, ITC discipline & evidence-based reconciliation — all strengths of Mackisen CPA.

Call to Action

If CRA is auditing your meal-prep, personal chef, in-home cooking service or weekly meal-delivery program, contact Mackisen CPA Montreal immediately:

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

Learning Conclusion:

A CRA GST/HST Meal-Prep & Chef Audit tests taxable food-prep services, grocery documentation, subcontractor compliance, ITC proof & delivery-fee GST rules.
Mackisen CPA Montreal ensures full protection from reassessments.