Collecting and remitting GST/HST when you sell or purchase taxable real property

Rules for vendors

Collect the GST/HST if:

• you sell taxable real property to a non-registered person; or
• you sell taxable housing to an individual, whether the individual is registered for the GST/HST or not.

Remit the GST/HST:

• with your regular GST/HST return if you are registered for the GST/HST; or
• with Form GST62, Goods and Services Tax / Harmonized Sales Tax (GST/HST) Return (Non-Personalized) if you are not registered for GST/HST.

Do not collect the GST/HST if:

• the buyer is registered for GST/HST, unless the buyer is an individual who is buying housing; or
• you are a non-resident.

Under these two conditions, the buyer has to self-assess the GST/HST owing and pay it to us directly.

Rules for GST/HST registered buyers

Generally, you do not pay GST/HST to the vendor, unless you are an individual who is buying housing. As a GST/HST-registered buyer, you have to self-assess the GST/HST owing on the real property and pay it to us directly. If you are an individual buying housing, the vendor collects the GST/HST from you, whether you are registered for GST/HST or not.

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.

If you are a GST/HST registrant and you intend to use the real property you purchased 50% or less in your commercial activities, you have to report and remit the GST/HST owing using Form GST60, GST/HST Return For Acquisition of Real Property, by the end of the month that follows the month in which you purchased the property.

Forms and publications

• GST/HST Memorandum 19-1, Real Property and the GST/HST
• Form GST60, GST/HST Return For Acquisition of Real Property
• Guide RC4052, GST/HST Information for the Home Construction Industry
• Form GST62, Goods and Services Tax / Harmonized Sales Tax (GST/HST) Return (Non-Personalized)

Date modified:

2014-11-07