Taxpayer (consignor) has a “sale by agent arrangement” where title to the goods is transferred directly from the owner (consignor - taxpayer) to the purchaser through a consignee (store) as an agent.
Consignor (provider of goods) provides goods to the consignee (store) - both HST registrants.
Once the sale is completed the store pays the consignor 60% of the total sale including HST.
The taxpayer (consignor) calculates sales from consignment as follows - the amount they receive is divided by 1.13 to get Net sale & HST.
e.g. Taxpayer received $113.00
Net Sale $100.00
HST collected $13.00