Is GST Charged on the Brokerage Fee?

By
Real Estate Sales Representative with CIR Realty - Condo Specialist RW-0611515

Is GST Charged on the Brokerage Fee?

Canadian Flag over the Parliment Building

 

 

In Canada, GST is charge on all goods and services.  The rate is  5% of the invoice amount. Since the brokerage fee is for real estate services supplied, it is subject to GST.     To demonstrate, if your brokerage fee is $5000, the GST which will be deducted from your sale proceeds in addition to the brokerage fee would be $250.00 for a total of $5250.00.

 

 

 

Comments (1)

Tish Lloyd
BlueCoast Realty Corporation - Wilmington, NC
Broker - Wilmington NC and Surrounding Beaches

Goodness, but what a pain in the neck -- taxes, taxes, and more taxes.

Jan 08, 2011 01:23 PM