A supplier relied on the GST/HST Registry – which showed that the recipient of a sale of real estate (a charity) had a business number ending in RT0001 – in not charging HST on the sale. The supplier subsequently learned that the charity’s business number ending in RT0001 was only for use in filing public service body rebates, and that the charity was not registered for GST/HST under Part IX.
(a) If the GST/HST Registry is unreliable, how can suppliers meet their obligations to check the recipient’s GST/HST registration status and apply s. 221(2)?
(b) If a supplier relies on the GST/HST registry, which gives a false positive, is it CRA’s policy to waive interest and penalties?
CRA responded:
(a) The Business Number and Authorization Division, Business Returns Directorate, Assessment, Benefit, and Service Branch, recently confirmed that they have resolved the issue of false positives that occurred in some instances … .
Suppliers can meet their obligation under subsection 221(2) of the ETA by obtaining the information from the recipient. Suppliers can call the CRA's Business enquiries line at 1-800-959-5525 to confirm the registration status of the recipient.
(b) The CRA does not currently have a specific policy to waive penalty and interest in cases where a supplier of real property relied on the GST/HST registry to verify a recipient’s GST/HST registration status and the GST/HST registry gave a false positive.
