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Post by SWMan on Jul 19, 2022 22:33:13 GMT -6
Anyone been audited by the gov't on GST? Last time we were they wanted me to submit payment for a few thing we did not charge for. There were three things and it was a couple years back. One was for some grain drying and bin rental which I should have collected at the time, but since then that partnership was no longer how would I collect there. One other was for a rotary ditcher I sold to a guy. Can't remember the third but they were all a couple years prior so I just paid it and never chased the downstream guys. I'm sure this is how the auditors make the gov't money.  Now I wonder about selling equipment and if or when one must collect GST? It's really stupid because it all gets claimed back anyway, even on custom work. Is there certain farm equipment that must have tax collected at sale? |
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Post by meskie on Jul 19, 2022 22:52:30 GMT -6
Dealers charge GST on skid steers so i would think you’d have to charge it when you sell it?
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Post by Beerwiser on Jul 19, 2022 23:23:22 GMT -6
Yeah Meskie is right, anytime you sell or provide farm services you have to charge GST. All my ag spraying is plus GST and the neighbor who is selling out just got confirmation that there is GST involved in the sale price.
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Post by Oatking on Jul 20, 2022 7:26:38 GMT -6
Sw man , I have been audited once by cra concerning a high GST rebate I sent in. They asked for the statements of some of the big ticket items like custom spraying and lease payments on equipment. It was not a big deal as I do my own income tax and gst books so I had all the paper work to hand in. The time stunk because it was at harvest time. oh well.
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Post by SWMan on Jul 20, 2022 8:56:29 GMT -6
Yeah I am aware of custom work requiring GST, just had forgot that time.
It's the equipment thing I am a bit unclear on. Like I actually just sold a skidsteer, should I be charging GST....looks like maybe?
Kinda stupid and it seems that these audits are more frequent. Gov't has no time to provide any services anymore, just to harass about stuff like this...
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CTS2
Junior Member
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Likes: 27
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Post by CTS2 on Jul 20, 2022 14:41:21 GMT -6
Yeah I am aware of custom work requiring GST, just had forgot that time. It's the equipment thing I am a bit unclear on. Like I actually just sold a skidsteer, should I be charging GST....looks like maybe? Kinda stupid and it seems that these audits are more frequent. Gov't has no time to provide any services anymore, just to harass about stuff like this... In Australia it's quite simple. I reckon it would be the same for you. GST is an abbreviation for Goods and Services Tax. All goods sold, and services provided, by your business therefore attract GST. Custom work is a 'service'. A skid steer is a 'goods'. |
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Post by northernfarmer on Jul 20, 2022 16:46:10 GMT -6
CTS2, it may be somewhat different in Canada in the sense of the piece of equipment as some equipment very specific to farming is referred to as zero rated if buying or selling such as a combine, grain auger, seed drill etc but a skid steer can be used for other purposes so it gets the GST slapped on it to buy it and again supposed to charge it when selling it so unfortunately its confusing ( gees, when did the government ever create bullshit that was confusing ? ). But all parts no matter what its to be bought for or fits on has GST charged on it. When it comes to custom work then as far as I know it doesn't matter if its a true farm piece of equipment or not that was used to bill out an hourly fee etc, GST is supposed to be charged on custom work, farm equipment or other multi use equipment. I don't keep up with all the bs the government invents and ultimately have to ask the accountant if I am not sure or a good farm equipment salesman is probably up on what does or doesn't qualify as being zero rated.
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Post by Oatking on Jul 20, 2022 21:14:04 GMT -6
The big ticket gst item is on land rent. Your suppose to pay it on rented land but some guys dont charge it. In one hand out the other. Makes no sense like northern farmer said.
I think the self assess gst on land purchases is a waste of time and money. Even thou you get it back its tied up till the government processes your gst claim. I call BS on that!
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Post by kevlar on Jul 20, 2022 21:45:32 GMT -6
GST is one of the dumbest taxes there is (I know, they all are) this brings in billions $$$$ for the government which is then eaten up in administration costs to move it around. They no doubt make billions from people who don’t bother to claim back what they can. I feel it will someday become just a tax you can’t claim back.
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Post by SWMan on Jul 20, 2022 22:02:17 GMT -6
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Post by slipclutch on Jul 21, 2022 5:00:56 GMT -6
On equipment. If the buyer has a section number you don’t need to charge GST. I always ask for the section number. If not charge GST.
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CTS2
Junior Member
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Likes: 27
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Post by CTS2 on Jul 22, 2022 16:12:10 GMT -6
CTS2, it may be somewhat different in Canada in the sense of the piece of equipment as some equipment very specific to farming is referred to as zero rated if buying or selling such as a combine, grain auger, seed drill etc but a skid steer can be used for other purposes so it gets the GST slapped on it to buy it and again supposed to charge it when selling it so unfortunately its confusing ( gees, when did the government ever create bullshit that was confusing ? ). But all parts no matter what its to be bought for or fits on has GST charged on it. When it comes to custom work then as far as I know it doesn't matter if its a true farm piece of equipment or not that was used to bill out an hourly fee etc, GST is supposed to be charged on custom work, farm equipment or other multi use equipment. I don't keep up with all the bs the government invents and ultimately have to ask the accountant if I am not sure or a good farm equipment salesman is probably up on what does or doesn't qualify as being zero rated. Okay, sounds like your system is a bit different then. Makes ours seem a bit simpler. We do have a few exceptions and a few oddities. For example basic food has no GST, but luxury food does have GST. For example, a raw chicken in a supermarket has no GST. If the same chicken is cooked and sold hot, it does have GST. If the same cooked chicken is not sold hot and then cools down and is sold cold instead, it doesn't have GST. |
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Post by northernfarmer on Jul 22, 2022 16:41:16 GMT -6
I think its safe to say many of our tax dollars disappear into thin air/the government disappearing act with such idiot taxes in Canada and Australia. I don't know for sure about chicken if its been prepared but is zero rated if its not. Snack foods generally have gst which means nuts, granola bars and any candy, chips etc. Bakery items bought in bulk are zero rated, same with most veggies, fruits, dairy being zero rated. Any restaurant food does have gst on it.
Fertilizer for farm use, chemicals/sprays, seed are zero rated, vehicle insurance and registration zero rated. But fuel even if its farm dyed fuel gets the gst and then have to claim it back.
My dad was no longer farming when the gst came out nor any of these other bs farm programs that the accountant rapes the clients over as I am sure my dad would turn over in his grave if he would have had to deal with all this shit.
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Post by kenmb on Aug 29, 2022 7:03:36 GMT -6
This thread reminded me that I needed to check into this. Put my 26hp Kubota tractor on Kijiji and it sold, took a small deposit and then remembered this gst discussion. It is a farm asset that has been deprecated and so is on the books and therefore CRA knows it exists. So I called my accountant and asked if I need to charge gst and he said yes.
Now that led to an interesting discussion with the buyer and I said I would give his deposit back no problem. He has an acreage and so no business account/gst # and therefore he can't claim the gst back. If he was using it as part of a business like me, then he pays me the gst and he claims it back on his end at tax time. Or if an acreage owner was selling to an acreage owner then neither one would have gst involved because neither will have the tractor as an asset.
I had the tractor listed at a decent price so did collect the gst. It was picked up this weekend so now need to replace it. Disappointed to see tier 4 made it into these little diesels over the years I wasn't paying attention. I maybe doing my first delete next summer. Looking to buy a new Kubota 33 hp instead of the 39hp option and use the price saving to buy a delete/ECM tune later. Still checking on that option.
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