GST/HST Treatment of Services Arranging Leases and Loans

• The text concerns GST/HST treatment of services provided by an agent that arranges leases and loans across Canada.
• The agent works through independent contractors to collect applications, assess creditworthiness, and submit financing requests to an issuer for approval.
• For equipment leases, the issuer buys the equipment and the customer enters a lease; for loans, the customer buys the equipment and the agent may register security for the issuer, or it may be a plain business loan.
• Under the agreement with the issuer, the issuer has final approval rights, and the agent is paid a commission only when a financing agreement is successfully funded.
• GST/HST rates are listed by province: 13% in Ontario, 15% in certain Atlantic provinces, and 5% in the rest of Canada.

Source: taxinterpretations.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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