Bulletin PST 005, "Buying and Selling a Business", Issued: November 2014; Revised: April 2015

When buying a business, PST applies to all taxable business assets. If the seller is a collector, the seller must collect and remit PST on the sale of taxable business assets. A collector must collect and remit PST on taxable sales until the date of cancellation of their registration.

If the seller is not a collector or does not charge PST on the taxable assets, the purchaser must self-assess and remit the PST due on their next PST return.

If the purchaser does not have a PST number, they must self-assess the PST due using a Casual Remittance Return (FIN 405) on or before the last day of the month following the month the taxable items were purchased.

Before buying a business or buying goods, software or an interest in a business through a bulk transaction, the purchaser should ensure that they have a clearance certificate issued by us. The certificate confirms that the collector has paid and remitted all outstanding PST and any related penalties and interest (up to the date the certificate was issued). If the purchaser does not obtain the certificate, they are liable for an amount equal to any outstanding amount owed by the collector.

The collector can apply for duplicate copies of the clearance certificate and provide one copy to the purchaser or, with the consent of the collector, the purchaser can obtain a copy of the clearance certificate directly by completing an Application for Clearance (FIN 447).