- As of April 1, 2013, HST will be replaced by GST and PST.
- This transition will only affect new housing or substantially (90% or more) renovated homes.
- This transition will not affect resale homes which are not taxable.
- As for real estate commission, only 5% GST is applicable instead of the 12% HST applied before the transition.
- After April 1, 2013, a temporary 2% transitional tax may apply in addition to the 5% GST in some cases:
– New housing or substantial renovations that are 10% or more completed before April 1, 2013.
– Possession or ownership takes place before April 1, 2015.
These are general information only.
It is important to consult your tax lawyer or tax accountant concerning any and all tax implications resulting from the purchase and sale of real properties in your specific situation, including GST and HST liabilities, exemptions, transitional provisions and rebates.
For more information, please refer to Canada Revenue Agency:
Elimination of the HST in British Columbia in 2013:
Questions and Answers (Notice 270 )
www.cra-arc.gc.ca/E/pub/gi/notice270/notice270-e.html
Transitional Rules for Real Property Including New Housing (Notice 276)
www.cra-arc.gc.ca/E/pub/gi/notice276/notice276-e.html
BC Transition Tax on New Housing (Info Sheet GI-156)
www.cra-arc.gc.ca/E/pub/gi/gi-156/gi-156-e.html
And “What’s Taxable under the PST and What’s Not?” from the BC Ministry of Finance:
www2.gov.bc.ca/assets/gov/topic/BED47DA4EBDBA60A5F28622B8B2E1451/uploads/whats_taxable_whats_not.pdf