I tried searching but I’m getting an error - If I am a private horse owner (no business, not an HST registrant), how does tax apply if I sell a horse to another private horse owner?
I am in Ontario.
Curious in 2 different cases:
I’ve read all of Equine Canada and tried searching Gov Ontario but the only thing I can find is if it’s a business selling the livestock.
Thanks!
I believe it is dependent on the seller’s status, not the buyer’s. It is the seller that would have to collect HST. I may be wrong though. Did you check with OEF?
Oh I didn’t think about OEF, good idea.
Hopefully it is with the seller’s status, that would mean as a non-business I’d not have to collect it. Just all round easier! Thank you!
Please come back and share what you learn!
It likely depends on $$ involved—if sale is over $30k, then you may have to register with CRA…
GST/HST doesn’t get charged to a US client but % varies within CA depending on province(s) involved.
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/rgstrng/menu-eng.html
also: [h=2]Enquiries[/h] If you wish to make a technical enquiry on the GST/HST by telephone, please call one of the following toll-free numbers:
1-800-959-8287 (English service)
1-800-959-8296 (French service)
General enquiries about the GST/HST should be directed to Business Enquiries at one of the following toll-free numbers:
1-800-959-5525 (English service)
1-800-959-7775 (French service)
If you are in Québec, please call the following toll-free number:
1-800-567-4692 (Revenu Québec)
Sorry for delay, proposal due at work!
@banmharcach - thank you! That is very close to what OEF sent back.
OEF was super helpful (and fast) and they checked in with Ontario Federation of Agriculture. Full email pasted below:
Your enquiry regarding taxation of horse sales is not our area of expertise, but I reached out to our partners at the Ontario Federation of Agriculture and received this response –
The Canada Revenue Agency has some information about HST on it’s website: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/gnrl/stps/cllct-eng.html
I’m going to assume this this not a racehorse in question.
As a “small supplier” (i.e. annual sales total less than $30,000), the seller would not be required to register for HST and would not collect HST on the sale of the horse. If they did decide, as a small supplier, to voluntarily become an HST registrant, then they would be required to collect HST on horses sold to individuals who are not farming. (Horses sold to farmers for breeding purposes would be considered livestock and zero-rated for HST. Horses sold for personal-use are not zero-rated).
Jason
Jason Bent
Director of Policy Research
Ontario Federation of Agriculture
100 Stone Rd W, Suite 206
Guelph, ON N1G 5L3
If you don’t have an HST number and are not a registered farm business in Ontario you do not charge HST. There is no way for you to submit that tax to the gov’t anyway. As a private horse owner you are not required nor obligated (or permitted) to charge that tax. There is no HST to be charged to US buyers of horses in Ontario, whether for breeding or pleasure.
I don’t think that is true, IF the horse is being sold for more than $30,000
You can privately sell a horse you own for any amount of money at all. If you are not HST registered you do not have to charge HST on the sale of a horse. This is a business tax. IF you are a registered farm business then you MUST charge HST. Unless breeding stock as noted above. Regardless whether HST registered or not in Ontario if you sell to the US you do not have to charge HST.
I have a similar question about a private sale. I am getting mixed answers from my research and from accountant friends. I am selling a horse privately (not a registered business) for more than $30K. Does anyone have experience with this? Would I be required to charge HST and register a tax account for a one-time sale? As well, would I need to declare capital gains on my income?
Any help or resources would be much appreciated!
To clarify, the sale is in Canada. I am in Ontario and potential buyer is in Quebec.
A tad off topic and mostly just for curiosity sake:
I could swear I’ve seen ads that say “plus HST for Canadian buyers”. Does that mean there is some loophole for selling to American buyers?
If a registered Canadian business (see definition above in MontyGal’s post) is selling a horse (for personal use, not breeding stock) to Canadian buyers, then HST must be charged. HST is not charged to buyers from outside of Canada. It’s not a loophole; non-Canadians don’t have to pay a Canadian goods and services tax.
I cannot with certainty answer your question about how to declare the income from the sale in your personal tax return, though I can tell you that as an individual, you are not required to charge or collect HST on a sale of a horse at any price. I’ve bought and sold many horses as an individual (and currently own a non-horsey business), and unless the horse in question has been managed and owned by a business, there is no reason to register a business account for a one-time sale.
Do you need to declare sales of private items on income tax? One doesn’t pay income tax on cars, sofas, or second hand shoes sold, though the buyer pays sales tax on the car when the papers are transfered.
@Scribbler my understanding is that extra income needs to be declared depending on the amount; however, I’m not an accountant so I can’t offer a concrete answer.
My guess is that if you are in business selling something, that is revenue to the business.
But an individual selling a possession is not income. Nobody pays income tax when they sell their used car.
I think you are actually supposed to claim some of these things if you sold them for more than what you paid for them.
Ah. Well that never happens with cars!
not in Canada, refer to Income Tax Act s. 40(2)(g)(iii), s. 46, s. 54, really do not know about US …but since OP was concerned about sales tax they should also review capital gains
If you have personal-use property which you purchased for more than $1,000, and you sell the property for more than you paid, you will have a capital gain to report on your tax return.
Well, I learned something. I’ve never sold anything for more than I paid for it 
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