Sellers of commercial properties who are HST registrants can sometimes elect to have the buyer 'self-assess' the HST. What does this 'election' primarily achieve?

Question: Sellers of commercial properties who are HST registrants can sometimes elect to have the buyer 'self-assess' the HST. What does this 'election' primarily achieve?

Answer options:

• It allows the buyer to pay HST directly to the seller as usual. ✅ It shifts the responsibility for remitting HST from the seller to the buyer.
• It exempts the transaction from HST entirely.
• It reduces the HST rate applied to the transaction.

Correct answer: It shifts the responsibility for remitting HST from the seller to the buyer.

Explanation: Under Subsection 221(2) of the Excise Tax Act, when selling certain commercial properties, an HST registrant vendor and another registrant buyer can elect to have the buyer self-assess and remit the HST, rather than the vendor collecting it.