P.E.I. man wants to know why he pays HST on electricity he generates himself

[Baer.]

4 hours ago, Ryan Strome said:

Same.

To my knowledge the issue has not been rectified. I'm pretty sure I posted this before.

 

The bolded-how very socialist of you.

How is that socialist? I'm the further thing from that.

 

I just think he's complaining about spilt milk. The tax is negligible.

[Ryan Strome]

56 minutes ago, Baer. said:

How is that socialist? I'm the further thing from that.

 

I just think he's complaining about spilt milk. The tax is negligible.

First of all it was sarcasm but it is silly to say he has enough money he did what everybody is saying we all should do now and he's being taxed for it. That's not right and it's generally far left supporters that say he has enough money. But again it was sarcasm I understand you and I pretty much see eye-to-eye politically.

[Baer.]

3 minutes ago, Ryan Strome said:

First of all it was sarcasm but it is silly to say he has enough money he did what everybody is saying we all should do now and he's being taxed for it. That's not right and it's generally far left supporters that say he has enough money. But again it was sarcasm I understand you and I pretty much see eye-to-eye politically.

Sarcasm over the internet...we all brain fart eventually

[WeneedLumme]

6 hours ago, Lancaster said:

I'm just now half expecting CRA to go in and tax the guy for "generating income-equivalence" or something.  

Yeah, I could definitely see those CRA parasites taxing him on the value of the electricity he produced for himself. If they are going to gouge him for HST, why not also gouge him for some income tax on it?

[SabreFan1]

Ask them to turn off/disconnect the meter and then ground out any overages you generate and cease sending your excess power into the grid.  Hook up a propane or gas powered generator directly into your main circuit breaker for any emergency power needs.

[Johnny Torts]

I like how the government can got 6 billion in debt because of icbc but not when it comes to climate change 

[timberz21]

18 hours ago, bishopshodan said:

Huh?

Going along that line of thinking, should I be taxed for raking my lawn because I could have paid for a landscaper? 

Or taxed on the food I grow / hunt? because I could have gone to the store?

 

He's developing his own energy...and it's clean energy. Shouldn't this be incentified instead of punished?

 

Maybe I don't understand what you are saying...

 

 

From my understanding the whole solar panel/create your own electricity thing, the way it work is, you are actually paying regular supply of electrity from the electric company, but get a credit from the electricity you produce (which is sent back onto the grid).  I don't believe he's supplying his own electricity, he's just producing the equivalent of what he's taking from the electric company.  You got to refer to the HST/GST definitions of taxable and exempt supply, etc.  The electric company is selling a taxable supply, however, this guy is a person and probably not registered to the HST/GST, therefore can't get the HST/GST credit or rebate.  That's how I see how they can charge him for the HST.

 

As for your food example, basic food is HST/GST exempt, unless you are buying chips and candies and stuff like that.  Maybe a better example would be when you buy/sell a car.  If you buy a car from the dealership, you get a HST/GST credit on your trade-in.  But if you sell you car personally, and then buy from the dealership then you don't get the credit.  There must be a reason from the HST/GST rules that prevents this transactions to be treated like a trading-in your car.  That's why I say if you make an exemption for this case, well it opens the door for other similar transactions to maybe be taken advantage off.  And when I refer to similar case, if doesn't have to do with clean energy, you have to refer to the HST/GST taxable, exempt, zero-base supplies definitions and rules.

 

Anyways i'm not HST/GST experts, but that's sort of my interpretation of the situation.

 

@Ryan Strome

Edited December 6, 2019 by timberz21

[bishopshodan]

3 hours ago, timberz21 said:

From my understanding the whole solar panel/create your own electricity thing, the way it work is, you are actually paying regular supply of electrity from the electric company, but get a credit from the electricity you produce (which is sent back onto the grid).  I don't believe he's supplying his own electricity, he's just producing the equivalent of what he's taking from the electric company.  You got to refer to the HST/GST definitions of taxable and exempt supply, etc.  The electric company is selling a taxable supply, however, this guy is a person and probably not registered to the HST/GST, therefore can't get the HST/GST credit or rebate.  That's how I see how they can charge him for the HST.

 

As for your food example, basic food is HST/GST exempt, unless you are buying chips and candies and stuff like that.  Maybe a better example would be when you buy/sell a car.  If you buy a car from the dealership, you get a HST/GST credit on your trade-in.  But if you sell you car personally, and then buy from the dealership then you don't get the credit.  There must be a reason from the HST/GST rules that prevents this transactions to be treated like a trading-in your car.  That's why I say if you make an exemption for this case, well it opens the door for other similar transactions to maybe be taken advantage off.  And when I refer to similar case, if doesn't have to do with clean energy, you have to refer to the HST/GST taxable, exempt, zero-base supplies definitions and rules.

 

Anyways i'm not HST/GST experts, but that's sort of my interpretation of the situation.

 

@Ryan Strome

I know, and I used another example too ( landscaper services). What I mean't is we should never have to pay any tax on any food grown/hunted. That would include include potatoes that I grow and fry into chips. Still, I get what you mean, not the best example. 

What about a car that I make myself? out of materials from my land...again should not pay tax on it its creation or use. Not talking about sale. Just the use. 

 

Thanks for the info of how the electricity distribution works...is it like that here in BC? My brother in law has a wind turbine on his lake cabin, I don't know if he is on a meter...I will have to ask him about it.

[Lancaster]

Hopefully this doesn't start a trend like....

https://en.wikipedia.org/wiki/Wickard_v._Filburn

[Hairy Kneel]

We need more solar so we should encourage it more with more incentives. This sounds like a penalty.