CRA GST/HST Vehicle Detailing, Interior Shampooing & Mobile Car Care Audit — Montreal CPA Firm Near You: Defending Taxable Services, Product Costs, Subcontractors & ITCs

A CRA GST/HST Vehicle Detailing & Mobile Car Care Audit targets:

• mobile auto detailers
• interior shampoo & deep-clean specialists
• exterior hand-wash contractors
• ceramic coating & paint decontamination
• headlight restoration
• engine bay cleaning
• pet-hair removal services
• mobile fleet-detailing businesses
• subcontract detailing helpers

Vehicle-detailing is a major CRA audit target because it is:

• 100% taxable (no exemption)
• cash/e-transfer heavy
• often mobile and subcontractor-based
• supply-intensive (chemicals, pads, towels, tools)
• poorly documented (no logs, no invoices)
• underreported when done for fleets, dealerships, Airbnb hosts, and rental agencies

Mackisen CPA Montreal specializes in shielding detailing contractors by correcting GST/HST application, reconstructing job logs, validating subcontractors, and defending ITCs for chemicals, tools, equipment, and vehicle use.

Legal Foundation

Excise Tax Act

• s.165 — ALL detailing, washing, shampooing, polishing, coating, interior cleaning & restoration labour is fully taxable

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

• s.169 — ITCs allowed only with proper documentation

• s.141.01 — mixed-use allocation for equipment, chemicals, & vehicles

• Schedule IX — rate depends on the location of the vehicle cleaned

• s.123(1) — “service,” “cleaning,” “maintenance,” “labour”

CRA & Case Law

• Auto detailing = taxable

• Mobile wash = taxable

• Shampooing = taxable

• Ceramic coating = taxable

• Royal Bank v. Canada — incomplete invoices void ITCs

• Northwest Company Inc. — strict invoice requirements

• CGI v. Canada — GST/HST based on location of service

Learning insight: Auto detailing has no tax exemption — every package, add-on and mobile visit is taxable.

Why CRA Audits Vehicle-Detailing & Mobile Car Care Businesses

Revenue Risks

• GST/HST not charged on packages
• cash/e-transfer jobs underreported
• fleet-detailing not invoiced
• ceramic coating, engine cleaning, shampooing missing GST
• multi-step detailing packages not itemized
• deposits & prepayments not included in GST periods
• inconsistent seasonal volume
• dealership or rental-agency work not reported

Subcontractor Risks

• helpers/detailing assistants without GST numbers
• subcontractors paid cash
• invoices missing GST or legal fields
• invalid GST registration
• T4A exposure for misclassification

ITC Risks

• missing receipts for:
– chemicals, waxes, shampoos
– microfiber towels, pads, brushes
– polishers, vacuums, extractors
– steamers & ozone machines
– PPE & gloves
– fuel, vehicle use
• imported equipment missing GST self-assessment
• personal car-cleaning supplies mixed with business purchases
• home-garage/shop ITCs overstated

Operational Risks

• no job logs (car, plate, time, package)
• no fleet logs
• mobile-route inconsistencies
• seasonal rush not reflected in revenue
• dealership “vendor slips” not recorded
• e-transfer memos saying “wash” with no invoice

High-risk operators:

• mobile detailers

• ceramic coating specialists

• car interior deep-cleaners

• subcontract detailer crews

• small shops with high supply consumption

Learning insight: CRA compares chemical and supply usage to reported revenue to detect hidden income.

CRA Vehicle-Detailing Audit Process

1. CRA requests:
   – invoices (packages, add-ons, coating, shampoo, travel)
   – subcontractor invoices + GST numbers
   – job logs / route logs / client lists
   – chemical & supply receipts
   – equipment purchase invoices
   – bank & e-transfer statements
   – ITC spreadsheets
   – mileage logs for mobile units
   – import documents for tools/equipment

2. CRA tests:
   • GST/HST applied to ALL labour
   • subcontractor compliance
   • ITC documentation validity
   • logs → invoices → deposits → GST filings alignment
   • imported tools → self-assessment
   • chemical usage vs job count
   • fleet jobs vs revenue consistency
   • correct GST/HST rate (QC/ON/Atlantic)

3. CRA issues Proposed Audit Adjustment.

4. Mackisen CPA builds a complete legal + documentary rebuttal.

Learning insight: CRA reconstructs business activity using supply purchases, job logs & e-transfer flows.

Mackisen CPA’s Detailing Audit Defense Strategy

• create a Detailing Tax Matrix (packages, add-ons, chemicals, travel)
• rebuild GST/HST-compliant invoices
• validate subcontractor GST numbers
• reconstruct ITC binder (chemicals, tools, equipment, vehicle)
• reconcile logs → invoices → deposits → GST filings
• defend supply purchasing patterns
• correct GST/HST for cross-province mobile jobs
• rebuild imported-equipment self-assessment entries
• prepare CPA-certified CRA audit binder
• negotiate removal of penalties & interest

Learning insight: These audits are won with job-by-job evidence, supply-to-revenue reconciliation, and subcontractor compliance.

Common CRA Findings in Vehicle-Detailing Audits

• GST/HST not charged on detailing packages
• helper invoices invalid or missing
• ITCs denied for missing receipts
• imported tools missing GST
• bank deposits > reported sales
• chemical usage far greater than job count reported
• mobile travel fees untaxed
• dealership/fleet work not invoiced

Learning insight: CRA looks for undisclosed revenue based on supply usage and e-transfer history.

Real-World Results

• A mobile detailer avoided a $198,000 reassessment after Mackisen CPA rebuilt chemical-usage logs & subcontractor documents.
• A ceramic-coating specialist reversed a $139,000 ITC denial with complete tool & equipment receipts.
• A fleet-detailing team eliminated penalties by correctly applying GST/HST on bulk service contracts.
• A deep-clean interior specialist cleared CRA findings through deposit → invoice → log reconciliation.

Learning insight: CPA-organized documentation collapses CRA assumptions quickly.

SEO Optimization & Educational Value

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

Learning insight: Auto-detailing GST audits rank extremely well in SEO due to massive gig-economy participation.

Why Mackisen CPA Montreal

With 35+ years defending auto-detailers, mobile detailers, ceramic-coating techs & fleet-service contractors, Mackisen CPA Montreal is Québec’s #1 authority in GST/HST audits for vehicle-care businesses.
We understand chemical consumption patterns, subcontractor risks, equipment ITCs & CRA methodology deeply.

Learning insight: Detailing audits require log accuracy, subcontractor control, ITC documentation & GST correctness—all strengths of Mackisen CPA.

Call to Action

If CRA is auditing your vehicle-detailing, mobile car wash, interior shampooing, ceramic-coating, or fleet-detailing business, contact Mackisen CPA Montreal immediately:

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

Learning Conclusion:

A CRA GST/HST Vehicle-Detailing Audit tests taxable labour, chemical consumption patterns, subcontractor GST compliance, ITC documentation & revenue reconciliation.
Mackisen CPA Montreal ensures full audit protection.