An input tax credit (ITC) is the GST/HST you paid on a business purchase that you can recover on your GST/HST return. ExpenseBot computes your ITCs per receipt, so your return numbers are ready to transcribe.
How ExpenseBot computes ITCs
For each receipt, ExpenseBot extracts the GST/HST and applies:
ITC = tax paid × business-use % × deductible %
It also reduces the deductible expense base by the ITC you recover — because you can't also deduct tax you're getting back as an input credit.
- Business-use %: a mixed-use cost (phone, vehicle, internet) earns an ITC only on the business share.
- Deductibility: category rules cap the credit where the law does. Meals and entertainment are generally 50% deductible, so the ITC on a client lunch is limited to 50% of the tax too.
- Province-aware total: your report shows a "GST/HST paid (ITC claimable)" summary line, labelled correctly for your province — GST, HST, or a GST + provincial split.
Worked example: a $200 client lunch in Ontario carries $26 HST. Meals are 50% deductible, so the claimable ITC is $26 × 100% business-use × 50% = $13. ExpenseBot books the $13 ITC and reduces the deductible meal expense by that same $13.
India (GSTR-3B)
The same engine produces CGST and IGST lines for Indian GST-registered users, so the input tax credit figures you need for GSTR-3B are captured on your report.
What you still do
ExpenseBot computes and displays ITCs — it does not file your GST34 return. You (or your bookkeeper) transcribe the claimable-ITC total onto the return. ITC columns appear on freelancer-mode reports for Canada; the full year-end tax workbook is a paid feature.
Educational tax information, not tax advice. Confirm your ITC eligibility with the CRA or your accountant. Landing page: https://www.expensebot.ai/input-tax-credit-tracker