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Ontario expands RST exemption for farmers

The Ontario government has broadened farmers’ ability to claim exemptions from the province’s eight per cent retail sales tax (RST) to include more equipment and building materials dedicated for on-farm use.

The province last week said it would redefine “farming” effective August 28 to allow post-harvest activities such as cleaning, sorting, grading, packing, packaging and storage of crops to be included in the RST exemption. With that expansion, farmers can claim more purchases under the RST exemptions for farm building materials and farm equipment and supplies, as long as the equipment is used “exclusively in the business of farming.”

Farmers can claim the exemption at point of sale using their general farm organization ID cards of a valid purchase exemption certificate (PEC).

The province said it would soon issue an information notice with details on the new exemption to retailers and farm organizations.

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