Subsection 129.1(1)
Administrative Policy
3 January 2020 GST/HST Ruling 192645a - Supplies of donated clothing by a public service body
A branch of the Corporation, a public service body but not a registered charity, operates a second-hand clothing store operated by part-time paid employees and volunteers that only sells donated clothing. The Corporation previously applied to designate the Branch as an eligible small supplier division; however, the Branch was not a small supplier division as its taxable supplies exceeded the $50,000 threshold.
After noting that the sales made by the store were taxable supplies, CRA stated:
[the Branch]’s designation as a small supplier division is no longer effective. [The Corporation] should revoke [the Branch]’s designation as this may cause errors in the future. …
Because [the Branch] exceeded the small supplier threshold, [the Corporation] is a registrant. … Therefore, [the Corporation] must register for GST/HST purposes. Since [the Branch] has not been authorized to file separate returns, the GST/HST that is charged and collected by [the Branch] must be accounted for on [the Corporation]’s GST/HST returns. …
[The Corporation] can apply to have a branch or division (such as [the Branch]) file separate GST/HST returns if the conditions are met. For more information, see Form GST10 … .
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Schedules - Schedule V - Part VI - Section 4 | sales of donated clothing by an NPO volunteer-operated store were not exempted | 142 |