CRA form

GST44: GST/HST Election Concerning the Acquisition of a Business

Reviewed by EverStone CPA · August 2026

Quick answer: GST44 lets the buyer and seller of a business elect so that GST/HST does not apply to the sale. Both sign it, but the filing deadline belongs to the purchaser — and it runs from their next GST/HST return, not from closing.

What the form is

GST44 is the GST/HST Election Concerning the Acquisition of a Business or Part of a Business. The CRA describes its purpose simply: “use this form to elect to not have GST/HST apply to the sale of a business or part of a business”.

Without it, a business sale is a taxable supply and the purchaser has to fund GST/HST on the whole purchase price, then recover it later as an input tax credit. On a seven-figure deal that is a serious amount of cash tied up for months for no net tax.

The election under subsection 167(1) removes that cash-flow problem rather than changing the tax outcome. It is joint: the supplier and the recipient complete it together.

Who files it

Anyone buying or selling a business, or a part of a business capable of being carried on separately.

It can now be submitted electronically through the File an election service in My Business Account or Represent a Client, rather than on paper.

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 catches people out

The election cannot be used if the seller is a registrant and the purchaser is not. Registering the buyer is therefore a closing item, not an afterthought.

The 90% test is about capability, not tidiness. The buyer must be acquiring all or substantially all of the property that can reasonably be regarded as necessary to be capable of carrying on the business. Anything the purchaser needs but is not acquiring under the agreement has to fall within the remaining 10% of fair market value.

The deadline is the purchaser’s, and it is easy to miss because it is not the closing date. It is the day the purchaser has to file the GST/HST return for the first reporting period in which they would otherwise have had to pay the tax.

A late, amended or revoked election carries a penalty of the lesser of $8,000 and $100 for each complete month from the election’s original due date to the date the request reaches the CRA in a form it finds satisfactory. The CRA will generally not process the election until it is paid.

Common questions

Who actually files the GST44?+

The purchaser. Both parties complete and sign it, but it is filed by the purchaser with their own GST/HST return.

When is it due?+

On or before the day the purchaser has to file the GST/HST return for the first reporting period in which they would otherwise have had to pay GST/HST on the purchase.

What is the 90% test?+

The buyer must be acquiring all or substantially all — generally 90% or more — of the property that can reasonably be regarded as necessary to be capable of carrying on the business. Anything needed but not acquired must fall within the remaining 10% of fair market value.

Can we use it if the buyer is not GST-registered?+

No. The election is not available where the seller is a registrant and the purchaser is not, so registering the buyer belongs on the closing checklist.

Where this comes from

General information current as of August 2026, not advice for your situation. Elections are unforgiving about dates — confirm yours before you file. Please speak with a CPA about your circumstances.

Filing one of these?

Elections are date-driven and unforgiving. Email us before the deadline rather than after — we quote the work in writing first.

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