I have an apartment that I am renting out and my friend tells me that there is VAT that I need to pay? Is there a VAT in Canada?

The VAT (Value Added Tax) ID number is not used in Canada. In Canada we have GST/HST, and if necessary you must register for a GST/HST account and be issued a GST/HST Registrant Number.

However "Residential" rental property owners are not allowed to charge or collect GST/HST, so you would not need to register.