CRA GST/HST Moving & Relocation Services Audit — Montreal CPA Firm Near You: Defending Moving Fees, Packing Services, Storage, Mileage & ITCs

A CRA GST/HST Moving & Relocation Services Audit targets businesses providing residential moving, commercial relocation, packing/unpacking, furniture assembly, long-distance moving, office transfers, temporary storage, and specialty moving (pianos, safes, machinery).

Moving companies are heavily audited due to:
• complex multi-province service routes
• confusion around GST/HST rules for long-distance moves
• taxable vs zero-rated misunderstandings
• subcontracted movers & helpers
• packing materials and supplies
• fuel & mileage charges
• storage and warehousing fees
• last-minute cash payments
• large equipment & truck ITCs
• cross-border shipments

Mackisen CPA Montreal specializes in defending these audits through supply-chain tax mapping, ITC reconstruction, subcontractor validation, and CRA-standard audit binders.

Legal Foundation

Excise Tax Act

• s.165 — GST/HST applies to all domestic moving & packing services

• Schedule VI — limited zero-rating (ONLY applies to certain export shipments — extremely rare in moving)

• s.221 — mandatory GST/HST collection

• s.169 — ITC documentary requirements

• ss.142–143 — rules on where a service is considered to occur

• Schedule IX — place-of-supply rules (QC/ON/Atlantic rate differences)

• s.123(1) — definitions: “service,” “transportation,” “storage,” “tangible property”

Case Law

• City of Calgary v. Canada — place-of-supply determined by where service is performed

• Royal Bank v. Canada — ITCs denied without strict documentation

• UPS/FedEx Cases — shipping vs service vs storage classification

• Northwest Company Inc. — invoice deficiencies = ITC denial

Learning insight: Moving services are always taxable unless part of a qualifying export move — extremely rare.

Why CRA Audits Moving Companies

CRA flags moving-sector businesses when it detects:

Revenue Risks

• GST/HST not charged on moving labour
• long-distance moves taxed incorrectly
• fuel surcharges, mileage, stairs fees not taxed
• subcontracted movers not charging GST/HST
• packing/unpacking fees misclassified
• storage fees treated incorrectly
• cross-border shipments taxed improperly
• cash payments underreported
• deposits collected but not remitted

Subcontractor Risks

• helpers without valid GST numbers
• subcontractor invoices incomplete
• misclassification of employees vs subcontractors
• T4A & T5018 mismatches

ITC Risks

• tool, dolly, strap, wrap & supply expenses with missing invoices
• truck/trailer ITCs overstated
• fuel receipts missing GST/QST details
• warehouse rent & storage ITCs lacking documentation
• imported moving supplies missing self-assessment (s.218)

Operational Risks

• no job logs
• inconsistent weigh-scale or distance records
• deposits not matching invoices
• multi-province moves using wrong tax rate
• moving supplies used personally

High-risk companies:

• residential movers

• commercial/office movers

• specialty movers (piano, machinery)

• long-distance / interprovincial movers

• packing/unpacking services

• storage & moving hybrid businesses

Learning insight: CRA assumes under-remitted GST + invalid ITCs + subcontractor issues unless proven otherwise.

CRA Moving & Relocation Audit Process

1. CRA requests:
   – invoices & contracts
   – job logs with dates, addresses & mileage
   – fuel receipts & vehicle expenses
   – subcontractor invoices
   – GST numbers for subcontractors
   – packing supply invoices
   – storage rental agreements
   – bank statements & e-transfer logs
   – weigh-scale tickets (long-distance moves)
   – ITC spreadsheets
   – interprovincial routing documentation

2. CRA tests:
   • GST/HST applied on all moving labour & surcharges
   • correct rate depending on province of service
   • subcontractor compliance
   • ITC documentation completeness
   • unreported revenue (cash/e-transfer)
   • storage classified properly
   • imported supplies self-assessed
   • long-distance moves not incorrectly zero-rated

3. CRA issues Proposed Audit Adjustment.

4. Mackisen CPA builds complete legal & documentary defense.

Learning insight: CRA often misinterprets transport vs service vs storage — the defense must clarify exactly what supply occurred.

Mackisen CPA’s Moving Industry Audit Defense Strategy

• create a Moving Supply Matrix (labour, travel, fuel, packing, storage)
• rebuild all GST/HST-compliant invoices
• validate subcontractor GST/HST registration numbers
• reconstruct ITC binder (equipment, fuel, supplies, warehouse)
• defend mileage & fuel logic with logs + GPS records
• correct multi-province tax rates
• reconcile contracts → deposits → payments → GST filings
• prepare CRA-standard CPA-certified audit binder
• negotiate penalty & interest reduction

Learning insight: Moving companies win audits with clean mileage records + correct GST logic + valid ITCs.

Common CRA Findings in Moving & Relocation Audits

• GST/HST not charged on:
– moving labour
– packing/unpacking
– fuel surcharge
– mileage
– stairs fees
– heavy-item fees
• long-distance moves taxed incorrectly
• subcontractors using invalid GST numbers
• ITCs denied for missing invoices
• cash jobs underreported
• storage misclassified
• vehicle ITCs overstated
• imported supplies missing self-assessment
• bank deposits higher than reported revenue

Learning insight: Most reassessments arise from invoice deficiencies + subcontractor issues + mileage/fuel errors.

Real-World Results

• A Montreal moving company avoided a $284,000 reassessment after Mackisen CPA rebuilt subcontractor and mileage documentation.
• A long-distance mover reversed a $172,000 ITC denial by reconstructing fuel, equipment, and storage invoices.
• A commercial relocation firm eliminated penalties after correcting multi-province GST/HST rates.
• A piano-moving company cleared CRA findings by reconciling deposits with GST filings and mapping service classification.

Learning insight: CRA backs down when documentation is clean, defensible, and CPA-certified.

SEO Optimization & Educational Value

Primary keywords: GST/HST moving company audit, CRA relocation audit, moving service GST rules, Mackisen CPA Montreal
Secondary keywords: long-distance moving GST, subcontractor GST audit, moving ITC denial, storage fee GST audit

Learning insight: Moving & relocation GST audits generate strong SEO traffic due to complexity and seasonal demand.

Why Mackisen CPA Montreal

With 35+ years defending movers, relocation companies, and logistics-related service providers, Mackisen CPA Montreal is Québec’s leading authority in GST/HST audit defense for the moving industry.
We understand routing, tax rates, moving surcharges, storage logic, subcontractor risks, and CRA audit methodology.

Learning insight: Moving audits require precise mileage logic + tax classification + full ITC documentation — all strengths of Mackisen CPA.

Call to Action

If CRA is auditing your moving or relocation business, subcontractors, ITCs, tax rates, or cash-flow reporting, contact Mackisen CPA Montreal immediately:

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

Learning Conclusion:

A CRA GST/HST Moving & Relocation Audit tests labour, travel, fuel surcharges, subcontractors, storage, ITCs, invoicing, and interprovincial tax rules.
Mackisen CPA Montreal ensures every component is fully defended — protecting your business from costly reassessments.