Written by Gurjit Ghai, REALTOR®
Rexara Realty Inc.·Published: October 8, 2026·Farm Taxes
Whether GST applies when you buy a farm depends on whether the sale is of a going concern business or just bare land and buildings, and it is one of the most common questions I get from buyers. A farm sold as an ongoing business operation may qualify for GST relief under the going-concern rules, while a sale of land alone, or a farm that has stopped operating, is often treated as a taxable real-property sale where GST applies on the purchase price.
The distinction matters because GST on a multi-million-dollar farm is a significant amount, and whether the buyer or the seller carries it depends on the transaction structure and whether the going-concern test is met. A residential home on the farm is also treated differently from the agricultural portion, which adds another layer.
I am not an accountant, so I never advise on the GST outcome, but I do make sure the question is answered before the offer goes firm. Read our Buying a Farm guide for the framework, and get a GST determination from an accountant who works with agricultural transactions before you commit.
Important: This answer is general professional guidance for educational purposes and is not legal, tax, financial or regulatory advice. ALR rules, water licensing, zoning and farm-classification requirements can change and depend on your specific property. Always verify with the relevant BC authorities and qualified professionals before making decisions.
Gurjit Ghai, REALTOR®
Personal Real Estate Corporation
Brokerage: Rexara Realty Inc.
Gurjit Ghai is a BC real estate professional specializing in agricultural land, ALR properties, and farm operations across British Columbia. He helps buyers and sellers navigate water rights, soil capability, farm classification, and the unique due diligence that farmland transactions require.