What taxes are payable on the property purchase and at what rate?
GST (Goods and Sales Tax) and QST (Quebec Sales Tax), federal and regional versions of VAT are chargeable at rates of 6% and 7.5% on the purchase price. However by being registered for sales tax you do not have to pay GST and QST on the purchase of the property as long as you use it for at least 90% of the time in your commercial activities. To be considered as a commercial property, the home has to be rented for periods less than 30 days at a time. If the commercial use is more than 50% and less than 90% you will be eligible to a credit according to that percentage.
