CRA GST/HST Mobile Detailing, Car Wash & Auto Aesthetics Audit — Montreal CPA Firm Near You: Defending Taxable Services, Add-Ons, Product Sales & ITCs

A CRA GST/HST Mobile Detailing & Auto Aesthetics Audit targets:

• mobile auto detailers
• in-shop detailing operations
• car wash companies (mobile or fixed)
• ceramic coating installers
• paint correction specialists
• headlight restoration
• interior shampoo/extraction services
• engine bay cleaning
• rim/tire detailing
• mobile fleet-cleaning businesses
• auto aesthetics and reconditioning studios

This industry is high-risk for CRA audits because it deals with fully taxable services, heavy cash/e-transfer payments, subcontractor helpers, chemical/product purchases, vehicle & equipment use, and inconsistent invoice structures.

Mackisen CPA Montreal specializes in defending auto-detailing audits by correctly documenting revenue, reconstructing ITCs, validating subcontractors, and preparing CRA-ready audit binders.

Legal Foundation

Excise Tax Act

• s.165 — ALL car-wash, detailing, polish, coating, and cleaning services are fully taxable

• s.221 — detailing businesses must collect GST/HST

• s.169 — strict ITC documentation rules

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

• Schedule IX — place-of-supply rules for out-of-province mobile services

• s.123(1) — “service,” “repair,” “aesthetic treatment,” “tangible property”

Case Law

• Royal Bank v. Canada — incomplete invoices = ITC denial

• CGI v. Canada — GST/HST rate depends on service location

• Northwest Company Inc. — supplier documentation must be valid

• CRA rulings: auto detailing is not exempt, even when cosmetic

Learning insight: Detailing, cleaning, polishing, and coating are 100% taxable.

Why CRA Audits Mobile Detailers & Car-Wash Operators

CRA audits this sector when it detects:

Revenue Risks

• GST/HST not charged on mobile or in-shop detailing
• cash/e-transfer jobs underreported
• multi-package services misclassified
• add-ons (engine bay, shampoo, pet hair removal) missing GST
• ceramic coating services not taxed
• travel fees & mobile surcharges not taxed
• fleet cleaning billed incorrectly
• deposits not included in GST returns
• Groupon/discount platforms not reported correctly

Subcontractor Risks

• helpers working as “contractors” without a GST number
• subcontractor invoices invalid or incomplete
• labour-only subcontractors not charging GST
• T4A or T5018 inconsistencies

ITC Risks

• missing invoices for:
– chemicals, soaps, compounds
– polisher machines
– steamers
– pressure washers
– shop vacuums
– microfiber cloths, brushes
– ceramic coatings & specialty products
– PPE & gloves
– vehicle, fuel, insurance, repairs
• imported detailing equipment missing self-assessment
• personal-use vehicle expenses overstated

Operational Risks

• no daily job logs
• inconsistencies between booking apps and deposits
• mobile route logs missing
• detailing packages recorded manually
• shop rent & utilities not documented
• Groupon/third-party payouts not matching GST returns

High-risk operators:

• mobile detailers

• fixed-location detail shops

• ceramic coating installers

• fleet-cleaning vendors

• auto aesthetic technicians

Learning insight: CRA assumes underreported revenue + invalid ITCs + subcontractor exposure unless documentation proves otherwise.

CRA Mobile Detailing Audit Process

1. CRA requests:
   – invoices (packages, add-ons, coatings, travel)
   – subcontractor invoices & GST numbers
   – booking app data (Calendly, Square, Fresha, GlossGenius)
   – merchant processor statements (Square, Stripe, PayPal)
   – bank & e-transfer logs
   – chemical & supply invoices
   – vehicle/fuel logs
   – equipment purchase invoices
   – ITC spreadsheets
   – mobile service route logs

2. CRA tests:
   • GST/HST applied correctly to ALL services
   • correct provincial rate for out-of-province jobs
   • ITC validity + proof of payment
   • subcontractor GST registration
   • consistency of logs → invoices → deposits
   • personal vs business vehicle/equipment usage
   • imported equipment → s.218 self-assessment

3. CRA issues Proposed Audit Adjustment.

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

Learning insight: CRA cross-matches job schedule + deposits + supplies to detect missing revenue.

Mackisen CPA’s Auto-Detailing Audit Defense Strategy

• build a Detailing Supply Tax Matrix (packages, coatings, add-ons, travel, chemicals)
• restructure invoices to correct GST/HST logic
• validate subcontractor GST numbers
• rebuild ITC binder for chemicals, gear & equipment
• defend vehicle ITCs with mileage + business-use logs
• reconcile bookings → invoices → deposits → GST returns
• correct QC/ON/Atlantic GST/HST place-of-supply
• rebuild imported-tools self-assessment
• prepare CPA-certified CRA audit binder
• negotiate removal of penalties & interest

Learning insight: Detailing audits are won with clean documentation + route logs + valid subcontractor proofs.

Common CRA Findings in Detailing & Car-Wash Audits

• GST/HST not charged on:
– detailing packages
– shampoo services
– polishing/buffing
imported(start)
– ceramic coatings
– travel/mileage fees
• cash/e-transfer jobs unreported
• subcontractor invoices missing GST numbers
• ITCs denied due to invalid invoices
• imported equipment not self-assessed
• bank deposits exceed reported revenue
• personal-use vehicle expenses overclaimed
• out-of-province tax rates wrong

Learning insight: The largest reassessments stem from invoice defects + cash mismatches + missing ITC documentation.

Real-World Results

• A mobile detailer avoided a $112,000 reassessment after Mackisen CPA reconstructed job logs & subcontractor documentation.
• A ceramic coating studio reversed a $146,000 ITC denial with complete equipment & chemical invoices.
• A fleet-cleaning operator eliminated penalties when we corrected multi-province tax logic.
• A car-detailing shop cleared CRA findings through reconciliation of e-transfer deposits.

Learning insight: CRA backs down when confronted with CPA-organized, job-by-job evidence.

SEO Optimization & Educational Value

Primary keywords: GST/HST car detailing audit, CRA mobile detailing audit, taxable detailing services Canada, Mackisen CPA Montreal
Secondary keywords: ceramic coating GST, detailing ITC denial, subcontractor audit detailing, car-wash GST/HST

Learning insight: Auto-detailing GST audits rank well in SEO due to industry growth and tax confusion.

Why Mackisen CPA Montreal

With 35+ years defending detailers, car-wash operators, ceramic coating technicians, and mobile cleaning units, Mackisen CPA Montreal is Québec’s #1 authority in GST/HST audits for the auto-aesthetic industry.
We understand package pricing, subcontractors, imported equipment, ITCs, and CRA methodology.

Learning insight: Detailing audits require documentation precision + GST accuracy + tool/equipment ITC control — all strengths of Mackisen CPA.

Call to Action

If CRA is auditing your mobile detailing, car wash, auto aesthetic, or ceramic coating business, contact Mackisen CPA Montreal immediately:

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

Learning Conclusion:

A CRA GST/HST Mobile Detailing Audit tests service taxability, subcontractor compliance, vehicle-use claims, ITC documentation, and platform reconciliation.
Mackisen CPA Montreal ensures your detailing business is fully defended and protected from reassessments.