Reporting fees for service (RFS) is the legislated requirement for businesses and organizations to report fees paid to other businesses for services provided. Payments that exceed $500 in a calendar year must be reported to the Canada Revenue Agency (CRA) in prescribed form, usually the T4A slip.

The RFS requirement:

• promotes a level playing field by ensuring that all businesses and organizations follow the same reporting standards and meet their tax obligations
• provides third-party reporting information to verify income and expenses reported by businesses and organizations
• limits opportunities for participation in the underground economy and reduces the corporate tax gap

In 2011, a moratorium on assessing penalties for failing to complete box 048, Fees for services, on the T4A slip was introduced. This was meant to allow businesses and organizations time to gain familiarity with the RFS requirement and adopt practices to comply. Though it was intended as a temporary measure, the moratorium remains in place.

Who is required to report fees for service?

Those who are required to report fees for service include, but are not limited to:

• businesses of all sizes, from sole proprietorships to large corporations
• charities and non-profits
• municipal, provincial, and territorial governments
• Government of Canada departments and agencies
• public bodies performing a function of government in Canada

Reporting fees for service consultations

The CRA recently conducted a variety of engagements to better understand Canadian businesses' and organizations' awareness of the RFS requirement, and the challenges they face with meeting this reporting obligation. These engagements consisted of:

• an online questionnaire (open to all Canadian businesses and organizations who hire another business or businesses to receive a service in exchange for payment), which ran from May 22 to July 22, 2024. In total 1,460 completed questionnaires were received
• a working group with key stakeholder organizations representing businesses of varied industries and sizes across Canada (by invitation), which held eight meetings between March and November 2024

The results of the questionnaire are available in the Reporting fees for service online questionnaire – What we learned – Summary.

The results of the working group are available in the Reporting fees for service external stakeholder working group – What we heard – Summary.

Related information

• Calculate payroll deductions and contributions - Payments of fees for services
• Reporting Fees for Services (RFS) initiative: Final report (2020 public opinion research)