CRA confirms that, in Audit’s discretion, it may provide relief where GST/HST has been double-collected

A resident proprietor provided short-term accommodation through the platform of a non-resident company and, as a GST/HST “regular” registrant, charged and collected GST/HST on the rentals. After the introduction of the accommodation platform rules pursuant to s. 211.13(3), the platform commenced to also charge GST/HST on the taxpayer’s supplies of accommodation – which was incorrect, given the proprietor’s registration.

Regarding whether the taxpayer could receive a refund of the “double paid” GST/HST, CRA stated:

Under Policy Statement P-131R, Remittance of tax collected by a person other than the supplier in limited circumstances, the CRA confirmed that it does not intend to collect tax twice on the same supply, and where the supplier and another person are both required to account for the tax, the liability to account for the tax of the supplier or the other person will be discharged where one of them accounts for the tax in its net tax calculation and remits the tax to the CRA.

Policy Statement P-131R is subject to certain exceptions and its application is at audit's discretion at the time of an audit … .

Neal Armstrong. Summary of 18 July 2024 GST/HST Interpretation 245851 under ETA s. 211.13(3) and s. 225(1) – A(a),