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GST on a commercial purchase or lease
Commercial property sales and commercial rent in Canada are usually taxable for GST at 5%. If you buy as a GST registrant, you normally self-assess instead of paying the seller at closing. Enter a price or annual rent to see the GST and the cash you need.
Result
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Estimate only. Confirm with your lawyer or accountant.
How does it work?
- GST is 5%. BC has no HST, and no PST on commercial rent.
- Purchases: a registered buyer of commercial real property usually self-assesses the GST on its own return and can often claim it back as an input tax credit in the same return. If you aren’t registered, the seller collects it at closing.
- Leases: the landlord charges 5% on base rent and additional rent. A registered tenant can usually claim it back.
- Used residential property is generally exempt. New residential and mixed-use property have their own rules.
Source: CRA, GST/HST and real property. Rate checked October 20, 2026. Register early: closing usually needs your GST number in the documents.
Before you rely on it
This is an estimate for planning. Confirm the numbers with your lawyer or notary and your accountant before you rely on them.
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