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Old 04-14-2011, 01:12 PM   #4
The Yen Man
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Actually, funny thing. My company was disposing of some used vehicles, and I came accross this same problem. Apparently, because it's a company disposing of their vehicles, GST has to be charged on the sale of it. I don't really know how that makes sense, since GST would have already been collected and paid to the government when the vehicle was first bought when it was new.

The government is essentially double collecting on the GST. But the government justifies it by saying your business sold the car like a business transaction, thus you have to collect GST on it. I can see this making sense if the company was a used car dealership, but I don't think it makes sense if it was just a company vehicle that the company is trying to get rid of.
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