Are Office Cleaning Services Tax Deductible in Canada?
Maintaining a clean space can reduce stress and increase productivity.
In fact, researchers at the Princeton University Neuroscience Institute found that by clearing clutter from work, participants could focus and process information better and faster, thus increasing productivity.
But, as much as keeping a clean workplace is essential, the bills that accumulate, especially in a business, can be extremely high.
But can you deduct this expense from your taxable income to lower your overall tax liability?
To help you answer this question, here is a guide to help you figure out which office cleaning services are taxable.
Tax-exempt Office Cleaning Services
All office cleaning services in Canada are taxable.
However, there are exemptions to this rule.
For example, cleaning services rendered as part of a medical service are exempt from the Goods and Services Tax/Harmonized Sales Tax (GST/HST).
Also, office cleaning services for any business are tax-exempt as long as you can prove that it is a legitimate expense.
Office Cleaning Services as a Tax Deduction for Business Owners
If the office cleaning service is necessary for the operation of a business, then you can consider it a legitimate expense that is tax deductible.
The table below shows the cleaning services that may be necessary for the operation of a business.
| Type of Business | Necessary Cleaning Services |
| Office space | Requires regular cleaning to ensure that you maintain the hygiene of employees and clients, providing a suitable space to run your business. |
| Retail space | You need to clean this space to maintain a clean and safe shopping experience, as it has high foot traffic. |
| Restaurant | Requires regular cleaning to meet the health and safety of your customers. |
| Manufacturing facility | Require regular cleaning to maintain a safe environment for your workers and machinery during production. |
| School | Regular cleaning of all buildings in the school, like classrooms, restrooms, offices, and common areas. Cleaning ensures that the pupils/students and all other parties involved learn or teach in a hygienic space, thus lowering the risk of spreading any illness. |
| Gym or fitness center | Regularly clean the facility and all equipment to ensure that the customers enjoy a good workout in a hygienic and safe environment. |
Office Cleaning Services as a Tax Deduction for Business Owners
If your business is home-based, you may be able to claim a portion of your cleaning cost as an expense for tax purposes.
But, according to the Canada Revenue Agency (CRA), the only way you can claim cleaning costs as a business expense is if the portion of the cleaning was exclusively for operations.
Meaning, you merely have a dedicated workspace, such as a home office or workshop.
Therefore you can not claim all your cleaning expenses as tax-deductible.
For example, if your cleaning costs total $1,000 for the year, but your dedicated space is only 5% of the total size, you can only claim $50 (5%*$ 1,000).
Considerations for Claiming Office Cleaning Services as a Tax Deduction
When claiming the business expenses as a tax deduction, you must keep a thorough record of all your cleaning costs and receipts, like proof of payments.
For home-based businesses, you must calculate the portion of your space used for work purposes. This is because you do not use your home entirely for business purposes, so the cleaning costs cannot be tax deducted if it is not a legitimate expense.
But, to ensure you have calculated the business expense correctly, you should consult a qualified tax professional or accountant.
They may be able to provide guidance on the most effective way to claim office cleaning services as a tax deduction and ensure compliance with all relevant laws and regulations.
Get Professional Cleaning Services
Most cleaning services will keep your business space (home or office) looking clean and pristine, thereby enhancing productivity.
But to ensure that you have the proper documentation to help justify cleaning services as a business expense, you should use professionals like us.
The documentation will help support your tax deduction claim and ensure that you have the necessary records in case of an audit.
Peak Janitorial provides both residential and commercial janitorial cleaning services, including
- Carpet cleaning
- Window cleaning
- Construction cleaning
- Floor care ( buffing, waxing, tile & grout cleaning)
Contact us today to schedule a cleaning appointment. We offer customizable cleaning plans to ensure you work in a clean environment without messing up your operations.