BC HST is Only Payable on BRAND NEW PROPERTIES!


BC HST and Vancouver Real Estate

Hi All,

There are A LOT of misconceptions about British Columbia’s Harmonized Goods and Services Tax and Vancouver Real Estate. The one I hear most is that HST will payable on all real estate transactions in BC. This is not true!

HST in BC will ONLY BE PAYABLE ON BRAND NEW PROPERTIES! These are properties that have never been registered at the Land Titles Office or have never been transferred out of the ownership of the developer/builder.

Quick Facts on BC’s HST

  1. BC’s HST comes into effect on July 1, 2010 and is 12%.
  2. Only payable on BRAND NEW PROPERTIES!
  3. Will be payable on Pre-sales and Assignments that Complete after July 1, 2010.
  4. HST is not payable on Re-Sale Properties!
  5. There are HST Rebates for properties under $525K

What does this mean for the Vancouver Real Estate Market?

Brand new properties will get a lot more expensive and may be less attractive compared to re-sale properties. Will it be the end of the world? No. Will it be good for the sellers of re-sale Vancouver real estate? Most likely.

Looking for a great HST Calculator? Check out my video blog post on this great PTT/HST Calculator!

I’d love to hear your thoughts and questions in the form of a comment down below!

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  Comments: 17

  1. Julie Cochrane – Mortgage Broker


    Thanks for the clarification on this, Mike … a lot of my clients have been asking questions about this and there is definitely a big misconception about how real estate purchases will be taxed.


  2. Hi Julie,

    Good to hear from you and thank you very much for commenting!

    I have had the same experience and this is why I shot this video. There are still a lot of misconceptions out there about HST.

    What effect do you think it will have on your business?


  3. but, sellers will have to pay HST on Realtor commissions correct?

    and now the cost of conveyance, appraisals and inspections will all have to pay the higher tax as well.


  4. Hi Kim,

    Good to hear from you and thank you for taking the time to comment!

    Yes, my understanding is that HST will be payable on Realtor commissions as for conveyancing, inspections, and appraisals, but DO confirm all of this with an qualified accountant!

    How’s the mortgage business? Looks like its getting a bit busier for us!


  5. yes, June is a HUGE month with over 30 closings. July is shaping up but would like to see more deals.

    thanks for all the info your site offers and your blogs.

    cheers!

    kim


  6. Good to hear!

    I put a lot deals together in April/May that complete in June, so that’ll be a good month for me too.


  7. I really appreciate the excellent information you have gathered and put on your website Mike. I looked up info on sellers fees and HST costs. In both Google searches your website showed up.


  8. Hi Elaine,

    Good to hear from you and thank you for the comment!

    Did the article answer your questions?

    Speak soon,

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