In the following situations the sale of vacant land by an
individual will attract HST:
The sale of land that is capital property that had been used
primarily in a business;
The sale of land in the course of a business; or,
The sale of a parcel of land created by subdividing another
parcel into more than two parts.
When Is the Sale Tax
Most sales of vacant land by
individuals are HST tax free, including the following
The sale of land that had been kept for personal use; or,
The sale to a relative (or to a former spouse or common-law
partner) for their personal use of a parcel of land created by
subdividing another parcel.
Sales by corporations will attract HST as the vast majority of
exceptions do not apply when the sale is primarily for a business
Some Unique Examples of HST on Vacant Land
If you inherit a piece of land
from an estate, and the land was not used for any commercial
purposes by you or before you acquired it, and now you want it sell
it to a developer, do you have to charge HST? In this situation you
likely do not have to charge HST because the land is not capital
property and it will not be sold in the course of business. Since
you inherited the land and did not purchase it, you should not be
considered to have sold the land in the course of an adventure or
concern in the nature of trade.
If you own a parcel of land and want to subdivide it to sell the
parts separately do you have to charge HST? If you have never
subdivided the parcel of land in the past and you subdivide the
parcel into only two parts the sale of either of
those parts is exempt from HST. If you subdivide
it into more than two parts the sale is
taxable. However, if you sell any part to a
relative, that particular part is not taxable. In addition, if,
when you originally bought the land, you always intended to sell
the land in the course of an adventure or concern in the nature of
trade (either the whole parcel or a part) you may elect to charge
tax on the sale. To add to the confusion there is a possibility for
There are many other examples and situations where the sale may
be exempt or subject to tax. You should contact a lawyer who can
help you better understand your obligations and to make sure that
you are not forgetting to charge and collect HST.
The Ontario Court of Appeal confirmed that courts will generally support and uphold decisions of condominium directors because they are better positioned than judges to make decisions pertaining to their buildings.
According to the city bylaws in Calgary, the grading of lots for new buildings must be done properly so that the water never flows toward the new building or any other nearby properties, but away from those buildings.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).