Retail Sales Tax Audits

A retail sales tax (RST) audit is when an auditor reviews your books and records to see if you have properly charged, collected, remitted and paid all RST.

We may decide to audit anyone who is:

  • a taxpayer in Ontario
  • an out-of-province business registered with the ministry.

You can be chosen for an audit on a random basis or on a belief that a tax problem may exist. Audits can also be the result of a referral or a cross-reference from another audit.

During the audit, the auditor will ask you about:

  • your business operation
  • the type of accounting system you use
  • how you account for RST on your sales and purchases.

The auditor will examine the books and records of your business, such as your:

  • ledgers
  • journals
  • bank accounts
  • sales invoices
  • purchase invoices.

An RST audit period is usually four years.

The findings of the audit will be provided to you on an "Audit Summary" form. A letter may also be sent to you with further details of the auditor's findings and any correction that may be required in your RST accounting system.

For more information, please refer to:

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