GST/HST and buying and selling a business

Where a business or a part of a business has been sold, a purchaser and vendor may be able to file a special election to avoid paying GST/HST on the purchase of the assets. This election is usually available if the purchaser is acquiring the ownership, possession or use of all the property needed to carry on the business or part of the business. However, this is not an easy determination to make. It is often not clear whether the business assets being sold qualify for this election. Before signing the papers, you should consult your tax adviser to determine if you qualify to make this election.