CRA finds that an NPO should have been charging GST/HST on sales of donated clothing

An NPO operated a store at which it sold used clothing that had been donated to it. Since it was not a registered charity, such sales were not exempted. The NPO had registered the store as a “small supplier division” but there ceased to be an exemption on that ground as a result of the sales exceeding $50,000. Accordingly, the NPO was a registrant (i.e., it was required to be registered for GST/HST purposes) and it thus was responsible for failure to charge GST/HST on the store sales.

Neal Armstrong. Summaries of 3 January 2020 GST/HST Ruling 192645a under ETA Sched. V, Pt. VI, s. 4 and s. 129.1(1).