CRA GST/HST Mobile Mechanic, On-Site Auto Repair & Roadside Assistance Audit — Montreal CPA Firm Near You: Defending Labour, Parts, Emergency Fees, Subcontractors & ITCs

A CRA GST/HST Mobile Mechanic & Roadside Assistance Audit targets:

• mobile mechanics
• on-site auto repair technicians
• roadside assistance providers (boosts, unlocks, tire change, fuel delivery)
• mobile diagnostics (OBD scanning)
• mobile brake jobs & minor repair services
• battery replacement services
• mobile tire installation
• commercial fleet mobile repair
• subcontract mobile repair assistants

This is one of CRA’s high-risk audit categories because the industry is cash/e-transfer heavy, involves mobile operations, mixes labour + parts (all taxable), uses subcontractors, and often lacks structured job logs unless professionally maintained.

Mackisen CPA Montreal specializes in defending mobile-mechanic audits through job-level reconstruction, subcontractor compliance verification, and detailed ITC documentation.

Legal Foundation

Excise Tax Act

• s.165 — ALL mechanic labour, parts, and service-call fees are fully taxable

• s.221 — GST/HST must be collected on every job

• s.169 — strict ITC rules (invoice + proof-of-payment required)

• s.141.01 — mixed-use vehicle & equipment allocation

• Schedule IX — GST/HST rate depends on service location

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

Case Law

• CGI v. Canada — tax rate follows where the service is performed

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

• Northwest Company Inc. — supplier invoices must be legally complete

• CRA rulings: roadside assistance & mobile repair = fully taxable

Learning insight: Mobile mechanic labour, parts, call-out fees and diagnostics = 100% taxable, no exemptions.

Why CRA Audits Mobile Mechanics & Roadside Repair Businesses

CRA flags these businesses when it detects:

Revenue Risks

• GST/HST not charged on mobile repair labour
• call-out fees & emergency fees missing GST
• diagnostic fees not taxed
• parts billed without GST/HST
• cash/e-transfer jobs underreported
• on-site fleet contracts not taxed correctly
• multi-province roadside assistance misrated
• deposits not reported
• service bundles (boost + diagnosis + repair) misclassified
• large gaps between calls logged and revenue declared

Subcontractor Risks

• subcontracted helpers without GST numbers
• invoices missing mandatory details
• labour-only subcontractors not charging GST/HST
• worker misclassification (employee vs subcontractor)
• T4A/T5018 inconsistencies

ITC Risks

• missing invoices for:
– parts (brakes, batteries, sensors)
– diagnostic tools (OBD scanners, meters)
– vehicle tires/repairs
– tools (impact guns, jacks, compressors)
– PPE & gloves
– mobile shop equipment
– fuel, insurance, vehicle depreciation
• imported scan tools missing s.218 GST self-assessment
• personal-use vehicle expenses claimed as business
• ITCs overstated for mixed-use garage/home storage

Operational Risks

• no job logs, no route logs
• inconsistent service-call timestamps
• mismatched supplier parts vs reported repairs
• boost/lockout/tire calls done with no invoices
• review platforms (Kijiji/Facebook Marketplace) showing more jobs than declared
• mobile techs working as subcontractors without documentation

Learning insight: CRA assumes underreported revenue + invalid ITCs + subcontractor non-compliance unless documentation is perfect.

CRA Mobile Mechanic Audit Process

1. CRA requests:
   – invoices (labour, parts, diagnostics, call-out)
   – subcontractor invoices & GST numbers
   – job/service logs
   – OBD scan logs
   – GPS or route logs
   – bank statements & e-transfer logs
   – merchant statements (Square, Stripe)
   – supplier invoices (NAPA, Canadian Tire, PartSource)
   – vehicle logs (fuel + mileage)
   – ITC spreadsheets
   – imported tool receipts

2. CRA tests:
   • GST/HST on labour, parts, call-out, diagnostics
   • place-of-supply (QC/ON/Atlantic rate differences)
   • subcontractor GST compliance
   • ITC document integrity
   • personal vs business vehicle/equipment use
   • invoice → deposit → GST return reconciliation
   • imported tools → self-assessment
   • emergency service calls vs declared revenue

3. CRA issues Proposed Audit Adjustment.

4. Mackisen CPA prepares complete legal-documentary defense.

Learning insight: CRA rebuilds your entire year using job logs + parts purchased + deposits.

Mackisen CPA’s Mobile Mechanic Audit Defense Strategy

• build a Mobile Service Tax Matrix (labour, parts, diagnostics, call-out, travel)
• rebuild compliant GST/HST invoices
• validate subcontractor GST numbers
• reconstruct full ITC binder (tools, parts, equipment, vehicle use)
• correct QC/ON/Atlantic rate logic for roadside calls
• reconcile job logs → invoices → deposits → GST filings
• defend vehicle ITCs using documented business-use allocation
• rebuild imported-equipment self-assessment (s.218)
• prepare CRA-standard CPA-certified audit binder
• negotiate penalty & interest reduction

Learning insight: These audits are won through precise logs, valid subcontractor documentation, and complete ITC proof.

Common CRA Findings in Mobile Mechanic Audits

• GST/HST not charged on:
– labour
– parts
– emergency call-out fees
– diagnostics
– travel/time charges
• subcontractor invoices invalid or missing
• ITCs denied for missing or incomplete invoices
• personal tools/vehicle expenses claimed incorrectly
• imported OBD scanners missing self-assessment
• bank deposits > reported revenue
• incorrect out-of-province tax rates
• supply-and-install misclassified

Learning insight: Biggest reassessments come from invoice defects, missing ITCs, and subcontractor issues.

Real-World Results

• A mobile mechanic avoided a $221,000 reassessment after Mackisen CPA rebuilt job logs and subcontractor documentation.
• A commercial fleet mobile-repair contractor reversed a $168,000 ITC denial with complete tool & parts invoices.
• A roadside-assistance provider eliminated penalties by correcting GST/HST on call-out fees & multi-province charges.
• A hybrid mobile mechanic/diagnostic technician cleared CRA findings via complete deposit reconciliation.

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

SEO Optimization & Educational Value

Primary keywords: GST/HST mobile mechanic audit, CRA roadside assistance audit, taxable repair services Canada, Mackisen CPA Montreal
Secondary keywords: mechanic ITC denial, subcontractor mechanic audit, OBD scanner GST, mobile repair GST/HST rules

Learning insight: Mobile-mechanic GST audits generate strong SEO because of rapid industry growth and cash-dominant operations.

Why Mackisen CPA Montreal

With 35+ years defending mechanics, mobile repair technicians, and roadside assistance providers, Mackisen CPA Montreal is Québec’s top authority in GST/HST automotive-service audits.
We understand mobile operations, parts, tools, subcontractors, emergency fees, and CRA methodology thoroughly.

Learning insight: Mobile-mechanic audits require service logs, tax knowledge, ITC accuracy, and subcontractor compliance — all strengths of Mackisen CPA.

Call to Action

If CRA is auditing your mobile mechanic, roadside assistance, on-site repair, or fleet service business, contact Mackisen CPA Montreal immediately:

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

Learning Conclusion:

A CRA GST/HST Mobile Mechanic Audit tests taxable labour, parts, emergency fees, subcontractor compliance, ITC documentation, and out-of-province GST/HST accuracy.
Mackisen CPA Montreal ensures your business is fully protected from reassessments.