GST Rebate

[Nir]

Hi All,

I heard if your company (whether sole proprietorship or corporation) collects residential rent then you are gst exempt.
However, what if the same company also acts as a property management company?

can you/do you claim GST rebate?

Thanks,
Neil
PS. I`m sure this was discussed before however quick search requires at least 4 letters and `GST` has 3

moderator: feel free to create an IT ticket and perhaps submit this as an improvement suggestion.

 

[bizaro86]

http://www.google.ca/search?hl=en&q=si...oq=&gs_rfai=


I mentioned an alternative way of searching in another thread. The link above goes to a google search of myreinspace.com for `GST Rebate.`

Hope that helps,

Michael

 

[brentdavies]

Neil,

You have to stop listening to the coffee house advice. No one is exempt from GST. Depending on your service you provide, that will require you to collect the GST.
If you don`t know, it worth the money to talk to your accountant on what to do.

Residential rents are zero rated or non gst servies. As a residential landlord, you are not required to collect, and you cannot claim gst on services for the residential properties.
No requirement to have a GST number. Keep it this way if you can. Saves lots of paperwork, accounting, and headaches.

Non residential rents ( Commerical properties such as stores and warehouses) are charged gst and the services provided to the commerical properties the landlord can deduct the GST paid from the GST collected, and then send the net gst back to the government.

We had a large client who was Zero rated for GST, ( Provincial Government) and as a result, always had a gst refund.

If you do get a GST refund on a regualar basis, expect the GST tax man on your door step soon. We were audited 3 times over 15 years, and got a clean bill each time.

Cheers

 

[Nir]

QUOTE (brentdavies @ May 4 2010, 01:05 PM) Neil,

You have to stop listening to the coffee house advice. No one is exempt from GST. Depending on your service you provide, that will require you to collect the GST.
If you don`t know, it worth the money to talk to your accountant on what to do.

Residential rents are zero rated or non gst servies. As a residential landlord, you are not required to collect, and you cannot claim gst on services for the residential properties.
No requirement to have a GST number. Keep it this way if you can. Saves lots of paperwork, accounting, and headaches.

Non residential rents ( Commerical properties such as stores and warehouses) are charged gst and the services provided to the commerical properties the landlord can deduct the GST paid from the GST collected, and then send the net gst back to the government.

We had a large client who was Zero rated for GST, ( Provincial Government) and as a result, always had a gst refund.

If you do get a GST refund on a regualar basis, expect the GST tax man on your door step soon. We were audited 3 times over 15 years, and got a clean bill each time.

Cheers

Hi Brent, thank you for the great input!

Actually my accountant is the one who mentioned that if your company collects residential rent then you are gst exempt.
since there is nothing wrong with asking for a second opinion I asked this question here too.

Honestly, from reading your first sentences I do not see how your response is different than what my accountant mentioned. I asked because as landlord you often pay much more GST than you collect. so gst exempt is actually bad news money wise as it means we can not claim it.


What i find a bit more confusing is if you have a PM company then I`m guessing you can claim the GST difference. but sometimes as a landlords who collects rents you also manage properties! Am I missing something or did I understand your response correctly?

Regards,
Neil
PS. my question is only regarding residential, not commercial