Passenger vehicle disposal - is hst charged by hst registrant?

If you’re a sole proprietor (HST registrant) and you dispose of your passenger vehicle will you have to charge HST?

I read the following link that tax is not paid to the seller (however not sure if this pertains to HST)
(Tax on used Vehicles)
Who pays: the buyer pays the sales tax when you register as the new legal owner of the vehicle. You do not pay sales tax to the seller.

How much: In most cases, buyers pay 13% RST in Ontario. The amount is based on the purchase price or the vehicle’s wholesale value, whichever is greater.

Also does the vehicle being used 90% + in commercial activity vs less than 90% for commercial activity effect anything?




  1. You are an HST Registrant, AND
  2. The vehicle is an asset under your business,
    Then You charge GST/HST on that sale.

If the vehicle is a personal asset, then you do not charge HST.

The issue will be if the vehicle is a business asset or not.