CRA GST/HST Real Estate Staging & Home Preparation Audit — Montreal CPA Firm Near You: Defending Staging Fees, Furniture Rentals, Design Services & ITCs

A CRA GST/HST Real Estate Staging & Home Preparation Audit targets businesses providing home staging, interior redesign, photography preparation, floorplan & measurement services, furniture rentals, and listing-readiness services.

This sector is rapidly growing — and CRA audits it aggressively — because staging involves multiple types of taxable supplies, including:
• staging labour (taxable services)
• interior design consulting (taxable)
• furniture rentals (taxable supplies of tangible property)
• delivery, installation & pickup fees (taxable)
• décor rentals (taxable)
• cleaning, decluttering & light repair add-ons (taxable)
• real estate photography coordination
• mixed packages involving taxable & reimbursed expenses
• subcontracted labour

Mackisen CPA Montreal specializes in defending staging-industry audits by mapping each service, confirming GST/HST classification, rebuilding ITC documentation, and producing CPA-certified audit binders.

Legal Foundation

Excise Tax Act

• s.165 — GST/HST applies to all staging services & rentals

• s.221 — requirement to collect GST/HST on taxable supplies

• s.169 — ITC documentation requirements

• s.141.01 — mixed-use allocation rules

• Schedule IX — place-of-supply rules (property location matters)

• s.123(1) — definitions of “service,” “rental,” “tangible property,” and “consideration”

Case Law & CRA Policy

• Royal Bank v. Canada — strict requirements for ITC evidence

• General Motors — classification follows economic reality

• CRA rulings: furniture rental & delivery charges are always taxable

• No exemption exists for staging or home prep services under Schedule V

Learning insight: Every component of staging — labour, rental, consultation, delivery — is fully taxable, with no exemptions.

Why CRA Audits Stagers & Home-Preparation Companies

CRA flags staging companies when it sees:

Revenue Risks

• GST/HST not charged on staging labour
• delivery, installation or pickup fees missing GST/HST
• furniture/décor rentals misclassified
• reimbursed expenses incorrectly excluded from tax
• package pricing hiding taxable components
• subcontracted stagers not charging GST/HST
• real estate agents paying cash for last-minute staging
• multi-province staging jobs misrated
• photography coordination treated as exempt (it is taxable)

ITC Risks

• furniture purchases without valid invoices
• décor, linens & props lacking GST/HST documentation
• vehicle expenses (van/truck) misallocated
• ITCs claimed for personal-use décor
• storage unit fees missing GST/HST
• subcontractor invoices with invalid or missing GST numbers

Operational Risks

• cash transactions
• damage deposits misunderstood
• inventory shrinkage (broken décor, missing items)
• staging inventory used personally
• intercompany charges not taxed properly

High-risk businesses include:

• home stagers

• interior stylists

• real estate listing preparation firms

• staging furniture rental companies

• décor rental businesses

• staging teams working across QC/ON

Learning insight: CRA audits staging firms because packages mix multiple taxable components, leading to misclassification.

CRA Staging & Home Prep Audit Process

1. CRA requests:
   – invoices & contracts
   – staging package breakdowns
   – furniture/décor rental lists
   – delivery/pickup logs
   – subcontractor invoices
   – supplier invoices for inventory
   – storage rental agreements
   – vehicle logs (cargo van)
   – photography coordination invoices
   – bank & merchant statements
   – ITC documentation
   – GST/HST provincial rate mapping

2. CRA tests:
   • whether GST/HST was charged on all taxable components
   • place-of-supply for staging performed in other provinces
   • validity of ITCs (documentation completeness)
   • subcontractor compliance (valid GST #)
   • whether reimbursed expenses are taxable
   • classification of staging inventory vs capital assets
   • consistency of POS data vs deposits
   • personal vs business use of décor inventory

3. CRA issues a Proposed Audit Adjustment.

4. Mackisen CPA prepares a complete audit-defense binder.

Learning insight: CRA dissects every staging job into parts — labour, rental, delivery — and tests tax treatment on each.

Mackisen CPA’s Staging Audit Defense Strategy

• create a Staging Supply Tax Matrix (labour, rental, delivery, décor, consultation)
• rebuild invoice-level GST/HST logic
• reconstruct ITC binder (invoices + proof of payment)
• classify furniture/décor purchases as capital vs inventory
• validate subcontractor GST registration
• defend damage-deposit treatment
• reconcile staging jobs → invoices → merchant deposits → GST filings
• justify shrinkage with documentation
• correct place-of-supply for out-of-province staging
• prepare CRA-standard audit binder
• negotiate penalty/interest reduction

Learning insight: Staging audits are won through component classification + ITC evidence + contract clarity.

Common CRA Findings in Staging Audits

• GST/HST not charged on:
– staging labour
– delivery
– furniture rentals
– décor rentals
– travel fees
• reimbursed expenses treated incorrectly
• subcontractor invoices invalid
• ITCs denied for missing GST numbers
• personal décor claimed as business
• place-of-supply errors for ON/Atlantic province jobs
• misclassification of rentals vs services
• van/truck expenses partially non-business use

Learning insight: CRA frequently assumes under-charging GST/HST and over-claiming ITCs.

Real-World Results

• A Montreal staging business avoided a $186,000 reassessment after Mackisen CPA rebuilt staging job classification and corrected rental tax treatment.
• An interior styling team reversed a $92,000 ITC denial once supplier invoices and proof of payment were reconstructed.
• A staging furniture rental firm eliminated penalties after proper GST/HST treatment of delivery and pickup fees was documented.
• A QC–ON cross-border staging company cleared CRA findings by correcting place-of-supply rules.

Learning insight: When the staging file is structured and CPA-organized, CRA’s assumptions collapse.

SEO Optimization & Educational Value

Primary keywords: GST/HST staging audit, CRA home staging audit, furniture rental GST Canada, Mackisen CPA Montreal
Secondary keywords: real estate prep GST rules, décor rental GST/HST, staging ITC denial, delivery fee GST audit

Learning insight: Staging audits are rising sharply — high SEO opportunity for Mackisen CPA.

Why Mackisen CPA Montreal

With 35+ years defending real estate staging, décor rental, and listing-prep companies, Mackisen CPA Montreal is Québec’s #1 authority on GST/HST audits in the staging sector.
We understand service bundles, décor rentals, delivery fees, subcontractor structures, and CRA methodology better than any firm.

Learning insight: Staging audits require precision, documentation, tax mapping, and real-world understanding — Mackisen delivers all of it.

Call to Action

If CRA is auditing your staging business, home preparation services, furniture rentals, or GST filings, contact Mackisen CPA Montreal immediately:

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

Learning Conclusion:

A CRA GST/HST Real Estate Staging Audit tests labour, rental, delivery, classification, invoicing, subcontractors, and ITC documentation.
Mackisen CPA Montreal ensures every component is defended and every tax rule is applied correctly — protecting your staging business from costly reassessments.