First Time Builder needs GST number
My question is: Canadian-specific
QUESTION: If I buy a building lot and pay GST on that lot, build a house on it and sell it, does the person buying that house have to pay GST? I am NOT a licensed builder or have a business etc. If they do have to pay GST can I claim what GST I paid back as a credit?
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david ingram replies:
If you have bought the lot, built the house and are selling it for $29,999 or less, you do not need to be registered. However, that is unlikely in today's economy although a $5,000 lot and the $24,000 log cabin I saw in a flyer today might qualify.
You are required to be registered as a GST registrant because you will be selling the house for over $30,000 I am sure.
You 'MUST' charge the purchaser GST or pay it yourself.
Register at: https://www.businessregistration-inscriptionentreprise.gc.ca/ebci/brom/bro/start.do?language=english
More information can be found at: http://www.cra-arc.gc.ca/tax/business/topics/gst/corporation/registering/menu-e.html
And yet more at: http://www.bdc-canada.com/BDC/services/gst_registration.htm
and specific information for builders can be found at http://www2.ccnmatthews.com/scripts/ccn-release.pl?/1999/06/21/0621005n.html?cp=cca
QUESTION: If I buy a building lot and pay GST on that lot, build a house on it and sell it, does the person buying that house have to pay GST? I am NOT a licensed builder or have a business etc. If they do have to pay GST can I claim what GST I paid back as a credit?
_____________________________________________________________________________________
david ingram replies:
If you have bought the lot, built the house and are selling it for $29,999 or less, you do not need to be registered. However, that is unlikely in today's economy although a $5,000 lot and the $24,000 log cabin I saw in a flyer today might qualify.
You are required to be registered as a GST registrant because you will be selling the house for over $30,000 I am sure.
You 'MUST' charge the purchaser GST or pay it yourself.
Register at: https://www.businessregistration-inscriptionentreprise.gc.ca/ebci/brom/bro/start.do?language=english
More information can be found at: http://www.cra-arc.gc.ca/tax/business/topics/gst/corporation/registering/menu-e.html
And yet more at: http://www.bdc-canada.com/BDC/services/gst_registration.htm
and specific information for builders can be found at http://www2.ccnmatthews.com/scripts/ccn-release.pl?/1999/06/21/0621005n.html?cp=cca
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