CRA GST/HST Photography & Videography Services Audit — Montreal CPA Firm Near You: Defending Packages, Digital Deliverables, Licensing Rights & ITCs

A CRA GST/HST Photography & Videography Services Audit targets:

• wedding photographers
• corporate photographers
• commercial & product photographers
• portrait studios
• event photographers
• videographers & cinematographers
• drone operators
• real estate photography
• content creators
• short-form video production for social media
• hybrid photo/video creators
• editors and post-production specialists

CRA audits this industry aggressively because it involves multiple taxable components, digital deliverables, bundles, subcontractors, and inconsistent invoicing practices.

Mackisen CPA Montreal specializes in defending photography & videography audits by clarifying supply classification, protecting ITCs, and reconciling revenue from multiple channels (POS, Stripe, PayPal, e-transfer, cash).

Legal Foundation

Excise Tax Act

• s.165 — GST/HST applies to ALL photography & videography services

• s.221 — mandatory collection and remittance

• s.169 — strict ITC documentation requirements

• s.141.01 — allocation rules for mixed services

• Schedule IX — place-of-supply for interprovincial clients

• s.123(1) — definitions: “service,” “licence,” “digital supply,” “intangible property”

Case Law

• Royal Bank v. Canada — ITCs require complete evidence

• City of Calgary v. Canada — consumption location determines GST/HST rate

• Digital Media CRA Rulings — digital files, editing, and licensing are all taxable

• Photographer Ruling — giving clients digital rights is a taxable supply

Learning insight: Photography & videography never qualify for exemption — everything is fully taxable, including digital files & licensing.

Why CRA Audits Photographers & Videographers

CRA flags photography/videography businesses when it detects:

Revenue Risks

• GST/HST not charged on photo/video packages
• digital files delivered without GST/HST
• wedding/corporate packages mixing multiple taxable components
• travel fees not taxed
• drone surcharges missing GST/HST
• inconsistent Stripe/PayPal/e-transfer deposits
• deposits not included in GST filings
• subcontracted second-shooters not charging GST/HST
• licensing fees misclassified
• multi-province clients taxed at incorrect rate

ITC Risks

• large equipment expenses:
– cameras, lenses, drones
– lights, stands, flashes
– editing hardware
• missing invoices for software (Adobe, Final Cut, DaVinci, Lightroom)
• ITCs denied for personal-use equipment
• home studio expenses misallocated
• imported gear missing self-assessment
• props, wardrobe, rentals with invalid supplier invoices

Operational Risks

• second shooters paid in cash
• subcontractor invoices missing details
• travel mileage logs incomplete
• booking calendar not matching revenue
• product (prints, albums) classification inconsistencies

High-risk segments:

• wedding photographers

• corporate event video teams

• real estate photo/video

• drone videographers

• content creators editing remotely

• studios with many subcontractors

Learning insight: CRA assumes missing GST + invalid ITCs + subcontractor gaps unless fully disproven.

CRA Photography/Videography Audit Process

1. CRA requests:
   – booking calendar & schedule
   – invoices & packages
   – Stripe/PayPal/merchant reports
   – bank statements & e-transfer logs
   – subcontractor invoices
   – supplier invoices (equipment, software, rentals)
   – ITC spreadsheets
   – travel logs
   – digital delivery receipts (Google Drive, Dropbox)

2. CRA tests:
   • correct GST/HST on ALL services & digital deliverables
   • multi-province place-of-supply (QC/ON/Atlantic)
   • ITC validity (invoice integrity + proof of payment)
   • subcontractor GST registration
   • consistency: calendar → invoices → deposits → GST return
   • licensing fees taxed correctly
   • equipment personal vs business allocation
   • imported gear → self-assessment compliance

3. CRA issues Proposed Audit Adjustment.

4. Mackisen CPA prepares a full legal, documentary & technical defense.

Learning insight: CRA does “project tracing” — every shoot must match an invoice and deposit.

Mackisen CPA’s Photography & Videography Audit Defense Strategy

• build a Package Taxability Matrix (shooting, editing, travel, licensing, prints)
• reconstruct invoices with full GST/HST compliance
• reconcile calendar → invoices → bank deposits
• verify subcontractor GST numbers
• rebuild ITC binder for cameras, lenses, lighting & software
• defend home office & studio allocation
• correct tax for digital rights licensing
• implement place-of-supply logic for out-of-province clients
• prepare CPA-certified CRA audit binder
• negotiate removal of penalties & interest

Learning insight: Photographers win audits with clean package definitions + full documentation + deposit reconciliation.

Common CRA Findings in Photography/Videography Audits

• GST/HST not charged on photo/video packages
• digital deliverables wrongly treated as exempt
• travel fees missing GST/HST
• subcontractors using invalid GST/HST numbers
• ITCs denied due to missing invoices
• equipment used personally claimed
• imported gear missing self-assessment
• bank deposits exceed reported sales
• printed products incorrectly classified

Learning insight: The largest adjustments arise from invoice defects + subcontractor problems + deposit mismatches.

Real-World Results

• A wedding photographer avoided a $198,000 reassessment after Mackisen CPA reconstructed full job-by-job revenue mapping.
• A corporate videography team reversed a $124,000 ITC denial with complete equipment & software invoices.
• A real estate photo/video firm eliminated penalties after correcting subcontractor GST compliance.
• A drone videographer cleared CRA findings by reconstructing flight logs and imported-equipment tax treatment.

Learning insight: CRA backs down when confronted with complete, CPA-structured audit documentation.

SEO Optimization & Educational Value

Primary keywords: GST/HST photography audit, CRA videography audit, digital deliverables GST Canada, Mackisen CPA Montreal
Secondary keywords: photographer ITC denial, second shooter GST audit, licensing fee GST, drone filming GST rules

Learning insight: Photography & videography audits rank extremely well in SEO due to the industry’s popularity and confusion around tax rules.

Why Mackisen CPA Montreal

With 35+ years defending photographers, videographers, studios, and digital creators, Mackisen CPA Montreal is Québec’s #1 authority on GST/HST audit defense for creative professionals.
We understand creative-package structures, licensing rights, subcontractor relations, equipment ITCs, and CRA audit methodology.

Learning insight: Creative audits require structured invoices, documented workflows, and accurate ITC support — all strengths of Mackisen CPA.

Call to Action

If CRA is auditing your photography or videography business, digital deliverables, subcontractors, or ITCs, contact Mackisen CPA Montreal immediately:

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

Learning Conclusion:

A CRA GST/HST Photography & Videography Audit tests package pricing, digital file delivery, licensing rights, subcontractor compliance, and ITC documentation.
Mackisen CPA Montreal ensures your creative business is fully defended and protected from reassessments.