Meals and entertainment (50%)
Why you can usually deduct only half of a business meal, and only claim back half its GST/HST.
The 50% rule
For most business meals and entertainment, such as taking a client to lunch or tickets to a game, you can deduct only 50% of the cost, including tips and taxes.
If you are registered for GST/HST, the same limit applies to the tax: you can generally claim back only half of the GST/HST you paid.
What counts
- Meals with clients, customers or suppliers to talk business.
- Entertainment like event tickets for a client.
- Your own meals while travelling for business.
Your everyday lunch near your own workplace is personal, not a business meal.
Some exceptions
A few cases can be deducted in full, such as a holiday party open to all your employees (up to six events a year), or meals you bill to a client and show on the invoice. Long-haul truck drivers have a higher limit. Check the CRA page if one of these might fit.
Keep a note
Write who you met and why on the receipt or in the expense notes. That is the first thing CRA asks.
What CollabNorth does
Record the full amount under Meals and entertainment. CollabNorth then:
- counts only half of the GST/HST as a claimable credit,
- shows in Reports roughly how much of your meals won't be deductible.
This is general information to help you keep your own records. It is not tax or legal advice.
Based on: CRA: Business expenses, meals and entertainment
Last checked: 2026-10-12