Capital property held at the time of closing a GST/HST account

When you close your GST/HST account, you are considered to have stopped using capital property you held for use in your commercial activities immediately before closing the GST/HST account.

Capital property includes land, buildings, vehicles, and computers. As a result, the "change of use rules" may be applicable. Under these rules, you are considered to have sold the capital property immediately before closing your GST/HST account and to have collected tax equal to the basic tax content of the capital property at that time.

Finally, you are required to account for the tax you are considered to have collected in your net tax calculation on your last return as a registrant. As a result of these rules, the input tax credits previously claimed on such property will generally be recaptured. For more information on the change in use rules and on calculating basic tax content, see Change in use rules for capital personal property or Change in use rules for real property.

Forms and publications

• Guide RC4022, General Information for GST/HST Registrants
• GST/HST Memoranda Series Chapter 8-1, General Eligibility Rules
• GST/HST Memoranda Series Chapter 8-2, General Restrictions and Limitations