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Is Goods and Services Tax (GST) payable?

April 26, 2017GST Payable Services tax

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Is Goods and Services Tax (GST) payable?

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Yes. GST is payable on the initial PBP paid by the Purchaser to the Company. A Purchaser that is registered for GST and is acquiring the timber in the course of their enterprise will be entitled to claim input tax credits on the GST paid.A Purchaser that is registered or required to be registered for GST should also charge GST on the repurchase price when selling the timber back to the Company. A Purchaser who is not carrying on an enterprise or does not meet the threshold amount (currently set at $50,000) will not be required to charge or remit GST.