Keep a trip log to identify the business use of your vehicle

A separate log should be kept for each vehicle which is driven for both business and personal use.  For the self-employed, only the business portion of vehicle expenses can be deducted from income, and GST/HST input tax credits are only allowed related to the business use of a vehicle.  For businesses which provide vehicles to employees, trip logs substantiate the business use of a vehicle, and the business must calculate the taxable benefit to employees based on the personal use.

The log should record the date of each business trip, destination, reason for the trip, and the kilometres driven.  The odometer reading of the vehicle must also be recorded, at the beginning and end of each year, to determine the total kilometres driven in the fiscal period.

If you buy, sell or trade your vehicle during the year, be sure to record the odometer reading at that time.

Logbook for a sample period

Once a taxpayer has maintained a trip log covering a full 12-month period that is typical for the business (the "base year"), Canada Revenue Agency (CRA) has indicated they would "afford considerable weight" to a trip log maintained for a "sample period" as evidence of the business use for a full year, if it meets the following criteria:

	A trip log must be maintained for a sample period of at least one continuous 3 month period in each subsequent year after the base year.
	The distances travelled and business use of the vehicle during the 3 month sample period is within 10% of the corresponding figures for the same 3 month period in the base year.
	The calculated annual business use of the vehicle in a subsequent year does not go up or down by more than 10% in comparison to the base year. Courtesy of www.taxtips.ca

Registering to collect GST/HST

How do I register to collect GST/HST?You can register online, by phone, or by mail.  If you don't already have a business number (BN), you will have to register for one. To register online, see the Canada Revenue Agency (CRA) Business Registration Online page.  The online registration process asks for your personal information first, including your social insurance number, even though you may be registering a corporation.  You will be asked if the business already has a business number.  If it does not, you will go through the process of registering for a business number first. You can register by phone for a business number or for CRA accounts (GST, income tax, payroll, etc.) by calling CRA at 1-800-959-5525. To register by phone or by mail, see the CRA How to Register - Business Number page. The CRA guide RC4022, General Information for GST/HST Registrants is a helpful resource for GST registrants. Registering for GST/HST in Québec To register online, go to the Revenu Québec web page Registering a new business for Revenue Québec files. To register by phone, call Revenu Québec at 1-800-567-4692.   Effective Date of RegistrationThe effective date of registration is the date that you become liable to collect GST/HST on your sales, and eligible to claim input tax credits on your purchases. If you charge GST/HST on your taxable sales before you register, your effective date of registration will be the date you first charged GST/HST.  Otherwise, the effective date of registration will depend on the type of registration:

Mandatory registrations: The effective date is the date: you provide taxable, including zero-rated, goods or services in Canada in the course of carrying on business in Canada, and your revenues exceed the small supplier threshold of $30,000 ($50,000 for charities or public service bodies) in a single calendar quarter or in four consecutive calendar quarters; you begin to operate a taxi or limousine service; or you, as a non-resident, charge admission directly to audiences in Canada. Source: TaxTips.ca