Quick answer: GST44 lets the buyer and seller of a business agree that no GST/HST applies to the sale. Both sign it. The buyer files it, and the deadline is the buyer’s next GST/HST return date, not the closing date.
Buying? Start with the buying a business checklist. Buying or selling? Talk to us about the structure before you sign the agreement.
A wrong GST44 costs both sides. Send an email enquiry and we will tell you if yours is straightforward.
When is my GST44 election due?
It is due with your return for the period in which you bought the business. The date appears straight away.
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What the GST44 joint election form is
GST44 is the GST/HST Election Concerning the Acquisition of a Business or Part of a Business. In the CRA’s words, you “use this form to elect to not have GST/HST apply to the sale”.
Without it, the sale is taxable. The buyer pays GST/HST on the full price and gets it back later as an input tax credit (a refund of GST/HST paid on business costs). On a large deal, that ties up cash for months.
The election, made under subsection 167(1), fixes the cash problem, not the final tax result. The seller (supplier) and buyer (recipient) sign it together. It is also called the GST 44 election.
Who files it: buying all or part of a business
Anyone buying or selling a business, or a part that could run on its own. The buyer files GST form 44 with their GST/HST return for the period of the purchase, online through File an election in My Business Account or Represent a Client.
The form at a glance
| Item | Detail |
|---|---|
| Legislation | Subsection 167(1) |
| Who signs | Supplier and recipient, jointly |
| Who files | The purchaser |
| Due | By the due date of the purchaser’s GST/HST return for the first reporting period in which tax would otherwise have been payable |
| The 90% test | The buyer must acquire all or substantially all — generally 90% or more — of the property needed to carry on the business |
What to have ready before you file
Gather the purchase agreement, proof the sale includes substantially all the property needed to run the business, both parties’ GST/HST registration status and the closing date. Doing it early catches a missing account number, an unworked balance or a mismatched date in time to fix it.
What catches people out
An unregistered buyer cannot use it if the seller is a registrant (registered for GST/HST). Register the buyer before closing.
The 90% test is about whether the business can run. The buyer must get substantially all the property needed to be capable of carrying on the business. Anything needed but not bought must fit within the remaining 10% of fair market value.
The deadline is the buyer’s return date, not closing. See GST/HST filing deadlines by reporting frequency.
Example. Priya’s corporation buys Dan’s landscaping business (trucks, equipment, contracts and customers), closing February 15. Both are registered, and Priya gets well over 90% of what the business needs. She files quarterly on calendar quarters, so the GST44 is due with her January-to-March return by April 30. Dan charges no GST/HST, and Priya has no tax to fund and wait to recover. Miss April 30 and the penalty adds $100 per complete month, capped at $8,000 — so file with the return.
A late, amended or revoked election costs the lesser of $8,000 and $100 per complete month from the original due date until the CRA receives a satisfactory request. The CRA generally will not process it until paid.
The buyer’s return date depends on their reporting period; the GST calendar for 2026 lists each one.
How it is filed
Both parties must be registrants and both sign; the buyer files it with that period’s return. Keep the signed copy with your working papers: a CRA review asks how you reached the figures, not just for the form.
Moving supplies between related corporations, not selling to a new owner? Use the section 156 election instead; it stops GST/HST circulating between related registrants.
A purchase or reorganization often changes who files which GST/HST return too; GST/HST filing covers the returns on both sides.
Business purchase and sale work is quoted in writing before you sign; ongoing GST/HST returns are part of monthly bookkeeping, from $325 a month.
Common questions about GST44
Who actually files the GST44?+
When is it due?+
When is GST44 due if the buyer is an annual filer?+
When is GST44 due if the buyer files quarterly?+
Is there a separate HST form for buying a business?+
Can a GST44 be filed late?+
What is the 90% test?+
Can we use it if the buyer is not GST-registered?+
What is Form 44?+
Is GST44 the section 167 election?+
As the seller, do I charge GST if we file a GST44?+
Can our accountant file the GST44?+
Where this comes from
- CRA — GST44 form page
- CRA — GST/HST Memorandum 14-4, Sale of a Business or Part of a Business
- CRA — Penalty for accepting a late, amended or revoked election
General information current as of , not advice. Elections are unforgiving about dates; confirm yours with a CPA before you file.
Related reading
- Share sales and the lifetime exemption
- Winding up a corporation
- Section 85 rollovers
- All CRA forms we cover
Other CRA forms
Who does this work
GST44 is one piece of a larger deal. Whether the sale covers substantially all of the business, and what the agreement must say, get settled before the election is filed.
See structure a business purchase or sale for what that work covers and how we quote it.
Elections are unforgiving about dates. Email us before the deadline, not after; we quote in writing first.
Email us about GST44Have a question about this?
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The election is one clause in a transaction with income tax consequences on both sides, and the tax advice a sale of a business needs covers those.
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