GST charged on Property Management fee

[sandra]

Hi all, My property manager started charging me 5% GST on top of 10% property management fee. I never heard of it before and am wondering if this is possible and appropriate.

Thanks

 

[Thomas Beyer]

QUOTE (sandra @ Mar 2 2009, 09:52 AM) Hi all, My property manager started charging me 5% GST on top of 10% property management fee. I never heard of it before and am wondering if this is possible and appropriate.

Thanks
yes, GST is charged on "services rendered" .. and no, you cannot get it back from the government on residential properties as rent is GST free !

 

[Dan_Eisenhauer]

Yep! You pay GST on every service and product you purchase for your residential property. You get it back in the form of a tax write-off, in the same way you write off the property management fee. You simply add it to the fee as an expense.