The sale of new, used or donated goods in a second-hand store is generally taxable. GST/HST and QST must therefore be collected on such sales if they are made by a person registered for the GST/HST and QST.

However, sales in a second-hand store operated by a charity registered under the Income Tax Act and the Taxation Actare treated differently:

• Sales of donated or used goods are exempt from the GST/HST and QST.
• Sales of new goods are taxable, and the charity must collect tax on such sales if it is registered for the GST/HST and QST.