Question 1

Do I need to register a consignment under PPSA?

Accepted Answer

Yes, under provincial PPSA legislation, a consignment may be treated as a security interest. Registering protects the consignor's title against the consignee's other creditors.

Question 2

Who pays GST/HST on consignment sales?

Accepted Answer

The consignee (seller) typically collects GST/HST from the buyer and remits it. The consignor may also need to charge GST/HST on the consignment arrangement itself.

Question 3

Who is responsible for insurance?

Accepted Answer

Typically the consignee must insure the consigned goods while in their possession. The agreement should specify minimum coverage amounts and name the consignor as additional insured.

Frequently Asked Questions