HVAC Technician
Tax guide for Canadian self-employed HVAC technicians and heating & cooling contractors
Allowable Expenses
- HVAC parts & refrigerants — Compressors, coils, refrigerants, and replacement parts purchased for client jobs (COGS)
- Tools & diagnostic equipment — Manifold gauges, leak detectors, vacuums, and HVAC-specific tools (CCA Class 8)
- Vehicle expenses — Service van mileage at CRA rates or actual vehicle costs for travel between job sites
- Refrigerant handling certification — Mandatory Environmental Protection (EP) or 313A refrigerant certification renewal fees
- Professional liability insurance — Contractor general liability and tools-in-transit insurance premiums
- Continuing education — TSSA, HRAI, or provincial HVAC trade certification maintenance and safety training
Tax Tips
- Refrigerant handling certification renewal fees are deductible professional development expenses
- HVAC parts and refrigerants purchased for client jobs are Cost of Goods Sold (COGS) on T2125
- Your service van is deductible as CCA Class 10 (30%) if used exclusively for business
- Register for GST/HST once annual revenue exceeds C$30,000 — HVAC services are taxable
Frequently Asked Questions
What tools can an HVAC technician claim as CCA in Canada?
HVAC tools costing more than C$500 can be claimed as CCA Class 8 (20% declining balance) on Form T2125. This includes manifold gauge sets, leak detectors, vacuum pumps, and refrigerant recovery machines. Tools under C$500 are usually expensed directly in the year of purchase.
Do HVAC contractors have to charge GST/HST in Canada?
Yes — HVAC installation, maintenance, and repair services are taxable for GST/HST purposes. Once your annual revenue exceeds C$30,000, you must register with the CRA and collect GST (5%) or HST from Canadian clients. Commercial maintenance contracts are also taxable.