Yes, fuel and parking costs can be deducted as vehicle expenses in Canada, but only if the vehicle is used for business purposes. You cannot deduct fuel or parking for personal commuting or leisure driving. If you're self-employed or use a vehicle for your business, you can claim a portion of these costs based on the percentage of your driving that's business-related. Keep detailed records of all fuel purchases, parking receipts, and business mileage to support your claims when filing with the Canada Revenue Agency (CRA). Fuel and parking deductions apply to several types of taxpayers: - Self-employed individuals who use a vehicle for client meetings, job sites, or business travel - Business owners who use a vehicle for company purposes - Commission-based employees who use their vehicle for work (with employer approval) - Gig workers and contractors who drive for deliveries or service calls If you're employed by a company and drive to a regular workplace, you generally cannot deduct fuel or parking. However, if you travel between multiple job sites or clients during the workday, this CRA rule may apply to you. The key to claiming fuel costs is determining the business-use percentage of your vehicle.
No. Commuting to a regular workplace is personal use and not deductible. You can only deduct fuel if you're self-employed, travel between multiple job sites, or drive for business purposes as part of your employment.
Yes, the CRA requires you to keep fuel receipts to support your deduction if audited. You can also use credit card or debit card statements showing fuel charges, but detailed receipts with dates and amounts are stronger documentation.
If you own your business location, parking is typically part of your property costs and handled differently. If you pay for parking at a client's site or public parking during business activities, that is fully deductible.
Keep a mileage log with dates, destinations, and kilometers for business trips. You can also use GPS apps, odometer readings at year-start and year-end, or a simple notebook. The CRA may ask to see this if they audit your return.
Yes, tolls and highway fees are fully deductible as business vehicle expenses when incurred for business trips. Keep receipts and toll transaction records to document these costs.