Who this is for
Newly licensed agents and agents who have just set up a PREC. Experienced agents will know most of this but may want the input tax credit point.
The five things
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Commissions are taxable supplies. Real estate services are not exempt. The $30,000 small-supplier threshold applies, and commissions count in full toward it.
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The threshold arrives fast. Pass $30,000 in a single calendar quarter and you stop being a small supplier on the deal that took you over. You then have 29 days to register. Pass it over four quarters and registration follows the month after.
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The brokerage statement is the record. Most brokerages show the commission, the GST on it, and the deductions on each deal statement. Keep every statement. Your GST return is built from them.
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Input tax credits are yours to claim. GST paid on board dues, marketing, signage, software, a share of vehicle costs and other business purchases comes back on the return. Agents who are not registered cannot claim it. This is the main reason registering early can be worth it.
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File on schedule, every period. Annual, quarterly or monthly, depending on your sales. A period with no commissions still needs a return. Late or missing returns bring penalties and, over time, estimated assessments that are hard to unwind.
PREC note
When a PREC is in place, the PREC is the registrant and the brokerage pays the PREC. The GST registration moves to the corporation. The agent personally usually deregisters. Get this sequence right when the PREC is set up.
One thing many people do not realize
A new agent who closes two average Lower Mainland deals has usually passed $30,000 in commissions in a single quarter. Under the single-quarter test, GST registration becomes required from the sale that took you over the line, not from the next year. Agents who wait for year end to think about GST are often months late.
What to prepare
- Brokerage statements for every deal in the last five quarters
- Receipts for business costs showing GST
- Whether you have a business number and a GST account, personally or in a PREC
- Your PREC’s fiscal year end, if any
When professional help may make sense
If you crossed the threshold and did not register, the GST is owed from that date whether or not you collected it. If a PREC was set up without moving the registration, two registrants may be filing for the same income. Both are fixable, and both get worse with time.
How Rex Tax may be able to help
We register agents and PRECs, set up the filing frequency, prepare the returns from the brokerage statements, and claim the input tax credits.
Official sources
This guide is general information, not advice about your situation. It reflects the rules for the 2026 tax year. It has not yet been reviewed by a practitioner. The information was checked against the official sources listed above on the date shown. Rules change. Check the official sources above or ask us. How we prepare these guides.