Hi All,
I have been getting A LOT of questions about The British Columbia Government’s new Harmonized Sales Tax and how it will affect Vancouver Real Estate.
4 Quick Facts on BC’s proposed new 12% HST effective July 1, 2010:
- It only applies to BRAND NEW properties and is paid when the property completes at the Land Titles Office. The HST is NOT PAYABLE on re-sale properties or used properties.
- Increase in the maximum threshold for rebates on HST from $400,000 to $525,000;
- The maximum rebate will be increased to $26,250;
- Transitional rules will apply – if you enter a contract before November 18, 2009, but complete after July 1, 2010, the provincial portion of HST will not be payable. This means you will pay only 5% GST, as you do today.
I’ve included the Press Releases from the BC Gov’t below.
If you’re buying a Pre-Sale, and Assignment, or a Property that is completing after July 1, 2009 and you think HST may be payable – SPEAK TO YOUR ACCOUNTANT AND YOUR LAWYER!
If you have any questions on the HST please contact me or leave a comment down below.
BC HST 2009 November Housing Threshold
Looking for an HST Calculator? Check out this great video blog post on a PTT/HST Calculator!
It’s too bad the government did give an extension of no HST (say for purchases until end of the year). Whoever bought prior to the amended announcement made out great as they are now HST exempt. But someone buying after the announcement in the same building ends up paying HST.
Hi Sam,
Good to hear from you and thank you for commenting!
I agree. The cut off date was too quick and arbitrary. Jan 1, 2010 might have been a better choice.
I also think that if the Provincial Government is concerned about housing affordability, taxing new properties is the wrong way to proceed.
What are your thoughts?
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Hey Mike,
If I am buying or selling a previously occupied house, HST is not applied, right? So does that mean only the 5% GST portion is payable?
Hi AJ,
Good to hear from you.
Confirm this with your accountant, but this is my understanding.
Occupation doesn’t matter.
If you are buying a property that someone else has bought from a developer or an owner/builder and completed a registration of title at the Land Titles Office, then there is no GST or HST payable.
Occupation of the property doesn’t matter, but rather if it has been completed on and title has been registered at Land Titles by someone other than the developer or owner/builder.
If you’re buying directly from an owner/builder or a developer than you have to pay GST or HST.
That said – Always confirm tax questions with your accountant and do not rely on what is said here. Realtors are not taxation experts.
What are your thoughts?
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