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I operate a flying club and paid PST on a non-jet aircraft I purchased for the club. Do I collect PST when club members rent this aircraft?

April 26, 2017aircraft club collect flying members non-jet operate paid PST

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I operate a flying club and paid PST on a non-jet aircraft I purchased for the club. Do I collect PST when club members rent this aircraft?

1 Answer

0

10 Posted

It depends. If you rent the non-jet aircraft to club members and do not make a profit (i.e. you only charge them to cover your costs of flying the aircraft, such as for fuel or airport fees), you do not charge PST. If you rent the non-jet aircraft to club members and make a profit, you charge PST on the total charge for using the aircraft. In this case, you do not pay PST on the aircraft. You can apply for a refund of the PST you paid. For more information, please see Bulletin GEN 008, Refunds of Overpayments of Tax.