Is commercial rent subject to HST?
In general, commercial rents are taxable for GST/HST purposes, provided the landlord is not a small supplier as defined under the Excise Tax Act (ETA).
Is there HST on groceries in Ontario?
You are not required to pay the Ontario portion (8%) of the HST on items such as books, childrens clothing and footwear, childrens car seats and car booster seats, diapers, qualifying food and beverages, and newspapers.
What is zero-rated services?
What is Zero Rating? By zero rating it is meant that the entire value chain of the supply is exempt from tax. This means that in case of zero rating, not only is the output exempt from payment of tax, there is no bar on taking/availing credit of taxes paid on the input side for making/providing the output supply.
Who pays HST on vacant land sale?
You are not required to collect the tax as the purchaser has to self-assess. The purchaser would remit the tax using either the GST 60, GST/HST Return for Acquisition of Real Property or, if using the land primarily in commercial activities, their regular GST/HST return.
What are zero rated supplies in GST?
By zero rating it is meant that the entire value chain of the supply is exempt from tax. This means that in case of zero rating, not only is the output exempt from payment of tax, there is no bar on taking/availing credit of taxes paid on the input side for making/providing the output supply.
How do you know if an item is zero rated?
Often, goods and services that are zero-rated are those that are considered necessary, such as food items, sanitary products, and animal feeds. Examples of zero-rated goods include certain foods and beverages, exported goods, equipment for the disabled, prescription medications, water, and sewage services.
How much is GST on commercial rent in Ontario?
This means the HST rate will be 13%, which is made up of the federal part (5%) as well as the provincial part (5%). Commercial real estate landlords and tenants will both be affected by the new HST rules. At least one of the following things will happen: The cost of running a business may go up.
Whats the difference between zero-rated and exempt goods and services?
For a zero-rated good, the government doesnt tax its sale but allows credits for the value-added tax paid on inputs. If a good or business is exempt, the government doesnt tax the sale of the good, but producers cannot claim a credit for the VAT they pay on inputs to produce it.
What goods are exempt from HST?
Zero-rated supplies basic groceries such as milk, bread, and vegetables. agricultural products such as grain, raw wool, and dried tobacco leaves. most farm livestock. most fishery products such as fish for human consumption. prescription drugs and drug-dispensing services.
Are groceries zero rated?
Most of the items sold in grocery and convenience stores are zero-rated basic groceries (that is, they are taxed at 0%). However, certain items sold in these stores are taxable. Click Taxable Groceries for details on how the the GST and the QST apply to basic groceries and other items.
