As a limited company do I have to pay the HST on the rent paid to the landlord?
By Lloyd Lindsay | June 26, 2013
Jerry asked:
As a limited company do I have to pay the HST on the rent paid to the landlord?
Lloyd Lindsay answered:
The GST/HST rules tax all real estate rentals --- unless specifically exempted. It doesn't matter whether you are an individual, proprietor, partnership or a corporation (limited company). Residential rentals are generally exempt.
A "Residential Unit" that qualifies for the exemption must be used as a place of residence or lodging for individuals. It's a purpose test. A limited company is not an individual and the tax applies.