Subsection 203(3)
Administrative Policy
28 May 1996 Interpretation File No. 11650-3
no GST on subsequent sale of s. 202(4) vehicle
Regarding the subsequent disposition by a GST registered individual of a passenger vehicle (the "vehicle") previously acquired for use less than exclusively (i.e., less than 90%) in the registrant's commercial activities, CRA stated:
[N]o GST will be charged on the disposition of the passenger vehicle. Pursuant to subsection 203(3) of the ETA, a registrant who makes a supply by way of sale of a passenger vehicle or aircraft that is capital property of the registrant and, at any time prior to its disposition, the property is not used exclusively in the commercial activities of the registrant, the supply of the property will be deemed not to be a taxable supply (and, accordingly, no GST will be charged on the sale of the property).
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Excise Tax Act - Section 202 - Subsection 202(4) | pro-rated claim in year of disposition, and separate accounting needed where there is a Class 10 pool | 244 |