How to Claim Business Meals in Canada (2026 Guide)

Quick answer

In Canada you can generally deduct 50% of meals and entertainment that relate to your business, including meals while travelling. The GST/HST input tax credit is limited to the same 50%. A few situations are fully deductible, such as up to six staff events a year open to all employees. Long-haul truckers can claim 80%.

Are business meals tax deductible in Canada?

Most meals and entertainment are subject to a 50% limit: the maximum is 50% of the lesser of the amount incurred and an amount reasonable in the circumstances ^[1] . If a meal or entertainment cost relates to earning business income, half of it is deductible. This covers client meals, staff meals, and meals while travelling on business. The limit applies regardless of how clearly business-related the meal feels.

Crucially, the 50% limit also flows through to GST/HST. The input tax credit you can claim on meals and entertainment is restricted to 50%. You can either claim 50% of the tax through the year, or claim the full amount and recapture half at your fiscal year end; both reach the same place. This is a common error point, because the GST/HST on a meal looks like any other recoverable tax but only half is actually claimable. See the wider Canadian expense rules for context.

How much can you claim?

Worked example. You take a client to lunch in Ontario for $113, which is $100 plus 13% HST of $13. You deduct 50% of the $100, which is $50, and you can claim 50% of the $13 HST, which is $6.50, as an input tax credit. The remaining half of each is not recoverable.

Record-keeping requirements

Keep the itemised receipt for every meal, note who attended and the business purpose, and keep enough detail to support any full-deduction event. A credit card slip alone is not a valid receipt for the CRA. Records must be kept for six years. Many businesses post meals to a dedicated account so the 50% income tax and GST/HST adjustments are easy to apply at year end.

How to claim, step by step

1. Confirm the meal relates to earning business income.
2. Code it to a meals and entertainment account at the full amount.
3. Deduct 50% for income tax, unless it is a qualifying full-deduction event.
4. Claim 50% of the GST/HST as an input tax credit, or claim 100% and recapture half at year end.
5. Keep the itemised receipt and the attendee note.
6. Retain records for six years.

Common mistakes

• Claiming the full GST/HST on meals when the input tax credit is limited to 50%.
• Deducting 100% of a client meal instead of 50%.
• Assuming travel makes a meal fully deductible; the 50% limit still applies.
• Missing the six-event full-deduction rule for staff functions.
• Keeping only a card slip, which the CRA does not accept as a receipt.

Software that helps

The 50% treatment and the matching GST/HST limit are easy to get wrong if meals are not coded consistently.

• Dext captures the itemised receipt and prompts for an attendee note.
• ExpenseFlow reads the receipt, applies the provincial GST/HST treatment, and splits explicit meals and entertainment lines into a 50% claimable and a 50% non-claimable part with the right tax code and account, for you to approve, then syncs the coded transaction to Xero or QuickBooks Online after approval.
• QuickBooks posts meals to a dedicated account so the year-end adjustment is straightforward.

FAQ

See the answered questions above for the 50% rule, the GST/HST limit, full-deduction events, travel meals, and conference meals.