Every year, the same scene plays out in February: a shoebox overflowing with crumpled receipts, bank statements scattered everywhere, and the nagging certainty that something important is missing somewhere. Yet the problem is almost never a lack of discipline — it's the absence of a simple system applied consistently. With a few well-chosen habits, you can turn this annual chore into a few minutes of work each week throughout the year.
How Long Do You Have to Keep Your Records?
The rule is the same on both the federal and provincial sides: six years from the end of the tax year in question.
The CRA requires that you keep all records and supporting documents for at least six years after the end of the tax year to which they relate. Revenu Québec applies the same retention period for QST and provincial income tax purposes.
In practice, this means your 2024 receipts must be accessible until at least December 31, 2030. A tax audit can cover any year within that window, and the absence of supporting documents can result in a denied deduction — even if the expense was perfectly legitimate.
Important exception: If you filed your return late, the six-year period begins on the actual filing date, not the regulatory deadline.
Are Digital Receipts and Photos Accepted?
The CRA and Revenu Québec recognize electronic documents as valid supporting documents, under certain conditions. A photographed or scanned receipt is generally accepted if it is legible, complete, and organized so it can be retrieved quickly during an audit.
In practice, a blurry, cropped, or partially unreadable image does not constitute a valid supporting document. The best approach is to photograph the receipt immediately after the transaction, before it gets crumpled or exposed to heat.
It is prudent not to destroy paper originals until you have confirmed that the digital version is perfectly legible. For thermal receipts in particular — which often fade within a few months — scanning promptly is not an option, it is a necessity.
What a Valid Receipt Must Contain
Not all receipts are equal. To be accepted as a supporting document during an audit, a business receipt should ideally contain the following elements:
| Element | Why It Matters |
|---|---|
| Date of transaction | Establishes which tax year the expense belongs to |
| Supplier name and contact information | Confirms the identity of the selling party |
| Description of goods or services | Justifies the business nature of the expense |
| Total amount and GST/QST breakdown | Required to claim tax credits |
| Payment method | Strengthens the traceability of the transaction |
For business meals, add a handwritten or digital note indicating the names of the people present and the purpose of the meeting — this information never appears on the restaurant receipt, but it is essential for defending the deduction.
4 Common Mistakes to Avoid
1. Keeping only thermal receipts without scanning them
Receipts printed on thermal paper — the standard format for most payment terminals and cash registers — gradually fade under the effects of heat, light, and humidity. A perfectly legible receipt today can be completely blank within 18 months. Photograph them as soon as you get them.
2. Mixing personal and business expenses
Occasionally paying a business purchase with a personal card is not prohibited, but it significantly complicates recordkeeping and increases the risk of forgetting to claim the expense. Where possible, use a bank account and credit card dedicated exclusively to your professional activity.
3. Forgetting to annotate the business context
A grocery receipt can be a legitimate business expense if you are hosting a working meal at home. A bookstore receipt can be if the book relates to your professional training. Without an annotation explaining the connection to your activity, these receipts are indefensible during an audit.
4. Letting everything pile up until February
This is the most widespread and costly mistake. The longer you wait, the harder it becomes to reconstruct the context of each expense, the more likely you are to lose receipts, and the longer and more stressful the reconciliation task becomes. A 30-minute monthly filing session is far better than a 12-hour session in April.
Best Practices: A System That Actually Holds
The best filing system is the one you will actually use. Here are a few practices that work for most self-employed persons:
- File by month and by category. A simple structure like `2025 > June > Vehicle / Meals / Supplies` lets you find any receipt in seconds and prepare your T2125 with no extra effort.
- Schedule a fixed monthly update. Block 30 minutes at the end of each month to process all accumulated receipts. That is enough for the vast majority of self-employed persons.
- Keep a separate mileage log. If you deduct vehicle expenses, the mileage log is a distinct record from your receipts — note each business trip as you go, not in a monthly reconstruction.
- Keep bank and credit card statements. Alongside receipts, your statements constitute a second level of proof of the transaction. The CRA and Revenu Québec may request both.
Practical Checklist — Is Your Receipt Valid?
Before filing a receipt, ask yourself these five questions:
- [ ] Is the date of the transaction legible?
- [ ] Is the supplier's name clearly identifiable?
- [ ] Is the description of the goods or services purchased present?
- [ ] Are the total amount and taxes (GST/QST) visible?
- [ ] Have I noted the link to my professional activity if it is not obvious?
If you answer no to any of these questions, complete the information now — in a few months, you will no longer remember.
Official Sources
- CRA — How Long Do You Have to Keep Your Records? : canada.ca/fr/agence-revenu/services/impot/entreprises/sujets/tenue-registres/combien-de-temps-devez-vous-conserver-vos-registres.html
- CRA — Where to Keep Your Records and How Long Before You Can Destroy Them : canada.ca/fr/agence-revenu/services/impot/entreprises/sujets/tenue-registres/ou-conserver-vos-registres-pendant-combien-de-temps-pouvez-vous-les-detruire.html
- Revenu Québec — Keeping Records and Supporting Documents (QST/GST) : revenuquebec.ca/fr/entreprises/taxes/tvq-et-tps-tvh/perception-de-la-tvq-et-de-la-tps-tvh/tenue-de-registres-et-conservation-des-pieces-justificatives/
- Revenu Québec — Keeping Your Records and Supporting Documents : revenuquebec.ca/fr/citoyens/declaration-de-revenus/apres-avoir-produit-votre-declaration-de-revenus/conserver-vos-registres-et-vos-pieces-justificatives/
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This article is for informational purposes only and does not constitute professional tax advice. Consult an accountant or tax professional for your specific situation.