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!

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:

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!