GST44: The GST/HST Election When You Buy a Business in Canada

This guide follows the GST44 E (26) version of the form and the CRA GST44 page, as of October 2026. The CRA also lets you make the election online with its File an election service, in which case you don't send the paper form.

Who can make the election

The supplier, meaning the seller, and the recipient, meaning the buyer, can jointly elect if all of these are true:

• The seller is supplying a business, or part of one, that it established or carried on, or that someone else established or carried on and the seller acquired.
• Under the agreement, the buyer acquires ownership, possession or use of all, or substantially all, of the property it needs to be capable of carrying on the business.
• Both are GST/HST registrants, or both are non-registrants, or the seller isn't registered and the buyer is.

The one combination that's ruled out is a registered seller and an unregistered buyer. If you're the buyer and you'll need to register anyway, sort out GST/HST registration before closing.

What substantially all means

The form defines all or substantially all as generally 90% or more. Part of a business generally means a functionally and physically discrete operating unit, or a supporting activity organized as a separate activity that's capable of operating on its own. Selling individual assets of a business isn't a supply of part of the business, so a sale of equipment on its own won't qualify.

What the election does

When the conditions are met and the election is made, GST/HST isn't payable on the property and services supplied under the agreement. The seller doesn't collect it and the buyer doesn't pay it. There are three exceptions where tax still applies:

• A taxable supply of a service the seller will provide.
• A taxable supply of property by way of lease, licence or similar arrangement.
• A taxable sale of real property, if the buyer isn't a registrant.

Filling in the form

1. Part A, recipient: the buyer's name, business number, trading name and type of business.
2. Part B, supplier: the same details for the seller.
3. Part C, election: the date the buyer acquired the property, a description of the property, and the buyer's GST/HST reporting period in which the acquisition happened.
4. Parts D and E: the buyer and the seller each certify the information and sign, with a name, title and phone number.

For the description, list the land, buildings, equipment, inventory, road vehicles, intangibles such as goodwill and any other property acquired. The CRA notes this is usually already described in the sale agreement, and you can attach a separate sheet.

Where to send it, or not

A buyer that's a GST/HST registrant sends the form with its GST/HST return for the reporting period in which the acquisition was made, to the address on that return. If it files its GST/HST return electronically, it can file the form electronically or mail it to the Sudbury Tax Centre at 1050 Notre Dame Avenue. Electronic filing goes through the File an election service in My Business Account or Represent a Client.

When the seller and buyer are both non-registrants, you don't send the form at all. The buyer keeps it, or a copy, on file in case the CRA asks to see it.

When to use a different form

A buyer that's a selected listed financial institution for GST/HST or Quebec sales tax purposes usually uses Form RC7244 instead. The exception is a buyer that's a selected listed financial institution only for GST/HST and is making the election only for GST/HST, which can still use GST44.

Key definitions on the form

• Business includes a profession, calling, trade, manufacture or undertaking of any kind, whether or not it's run for profit, but not an office or employment.
• Registrant means a person registered, or required to be registered, for GST/HST, generally excluding those registered only under the special rules for digital economy businesses.
• Supply means providing property or a service in any way, including sale, transfer, barter, exchange, licence, rental, lease or gift.

The CRA's fuller guidance is GST/HST Memorandum 14-4, Sale of a Business or Part of a Business.

A worked way to check eligibility

1. Confirm what's being sold is a business or a part of one, not a handful of assets.
2. List the property the buyer needs to run it and check the deal hands over 90% or more of it.
3. Check both parties' registration status against the three combinations that are allowed.
4. Spot any services, leases, licences or real property in the deal that fall into the exceptions.
5. Agree who files: the registered buyer with its return for the period, or neither party if both are unregistered.

The verdict

If you're buying a going concern in Canada and taking substantially all of what's needed to run it, GST44 can take GST/HST off most of the sale. Check the registration combination first, describe the assets fully in Part C, get both signatures, and file it with the buyer's return for the period of the purchase.

Frequently asked questions

What is the GST44 election?

It's a joint election by the buyer and seller under subsection 167(1) of the Excise Tax Act so GST/HST doesn't apply to the supply of a business or part of a business.

Can I use GST44 if the seller is registered and I'm not?

No. The form says the election can't be made if the supplier is a GST/HST registrant and the recipient isn't.

What does substantially all mean on GST44?

The form says all or substantially all generally means 90% or more.

Does GST44 have to go to the CRA?

A registered buyer sends it with its GST/HST return for the period of the purchase, or files it online. If both parties are non-registrants, the buyer keeps it on file instead.

Does GST44 cover every part of the sale?

No. GST/HST can still apply to services the seller provides, leases or licences of property, and real property sold to a buyer who isn't a registrant.