Harmonized Sales Tax (HST) and Vancouver Real Estate

*** PLEASE NOTE! HST is no longer payable in British Columbia and has been replaced by the GST! Check out this great BC GST Calculator!

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:

1. 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.
2. Increase in the maximum threshold for rebates on HST from $400,000 to $525,000;
3. The maximum rebate will be increased to $26,250;
4. 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.

HST New Housing Rebates

BC HST 2009 November Housing Threshold

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