Canada Revenue Agency
www.cra.gc.ca
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Collecting and remitting GST/HST when you sell or purchase taxable real property
The following rules apply, regardless of whether a supply is made in a participating province or the rest of Canada. To determine whether a supply is made in a province, see the Place of supply rules for real property.
Rules for vendors
As a vendor, there are special rules to follow if you makes taxable sales of real property. Generally, it is the GST/HST registration status of the buyer that determines who collects and remits GST/HST.
As the vendor, you collect the GST/HST if:
- you sell taxable real property to a non-registered person; or
- you sell a taxable residential complex to an individual, whether the individual is registered for the GST/HST or not.
If you are registered for the GST/HST, remit the GST/HST you collected with your regular GST/HST return. If you are not registered for GST/HST, complete Form GST62, Goods and Services Tax / Harmonized Sales Tax (GST/HST) Return (Non-Personalized).
As the vendor, you do not collect the GST/HST if:
- the buyer is registered for GST/HST and the property is not a residential complex being supplied to an individual; or
- you are a non-resident vendor who sells taxable real property (even if you are considered to be a resident only in respect of activities carried on through a permanent establishment in Canada).
Under these two conditions, the buyer has to self-assess the GST/HST owing, and pay it to us directly.
Rules for registered buyers
Generally, GST/HST registrants who buy taxable real property do not pay GST/HST to the vendor. As a GST/HST-registered buyer, you have to self-assess the GST/HST owing and pay it to us directly.
If you are a GST/HST registrant and you intend to use the real property you purchased more than 50% in your commercial activities, you have to report the GST/HST owing on your regular return for the reporting period in which the tax is payable. At the same time, you may be able to claim an input tax credit.
