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Buyers who are using 90% or more of the farmland in a farming business would be able to claim a full input tax credit.In this circumstance, it would be prudent for the seller to confirm the registration status of the purchaser at the time of the sale.However, the collection of the HST can vary, depending on the circumstances. Selling Farmland to a Person Who Is Registered for the HST If the purchaser of the farmland is registered for the HST, the seller is not required to collect the HST generated by the sale.The buyer reports the HST payable and claims an offsetting input tax credit in their first HST return after the sale.The farmland must have been used in the business of farming at any time prior to the transfer.In addition, the farmland may not have been used in any other commercial activity immediately before the transfer.

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Happy new year and welcome to my first post for 2014.The exemption is not available to land held by corporations or partnerships.

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