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Lease inducements - Lessee (taxpayer)

Lessor of a commercial space paid a lease inducement ($16,950 cash payment) to lessee - taxpayer in this situation.

Lessor gave the lessee a set amount per sqft for leasehold improvements made to the space - $16,950.00.

GST/HST memorandum 19.4.1 (Commercial Real Property - Sales and Rentals)

Bolded the paragraphs I felt are applicable

Paragraph 36
Lease inducements

Several types

36. Sometimes lease inducements are used for leases of taxable commercial property. The GST/HST consequences vary according to the circumstances of the lease inducement. Examples of the most commonly used lease inducements-rent-free period, reduction of rent, cash payment and leasehold improvements-are discussed below. Note that all examples assume an arm’s length relationship between the landlord and lessee.

Paragraph 44
Leasehold improvements

44. Frequently, leasehold improvements are used as lease inducements. The GST/HST treatment of leasehold improvements depends on the nature of the transaction. Two of the most common situations are:

** the landlord pays for the improvements, or*
** the landlord provides cash inducements for the lessee to carry out the improvements.*

Paragrahph 46
46. If the landlord provides a cash inducement for the lessee to carry out improvements, the lessee is considered to have made a taxable supply of the construction inputs (i.e., construction services and building materials) used to improve the leased property to the landlord for which the payment is consideration. The lessee, if a GST/HST registrant, must charge and collect GST/HST on the payment received from the landlord. The landlord, if a GST/HST registrant, may claim an ITC with respect to the GST/HST paid or payable on the cash inducement to the lessee. Moreover, the lessee could claim ITCs with respect to the GST/HST paid or payable on purchases used to improve the property.

So does this mean the lessee (taxpayer) books the $16,950.00 as a sale with HST on the books?
DT Cash $16,950
CT Sales $15,000
CT HST $1,950.00

Also, would anyone like to add anything to this?