Misconceptions and the Need for an HST Calculator for New Homes and Presales in Vancouver!
When the Harmonized Sales Tax (HST) replaced British Columbia’s Provincial Sales Tax (PST) and the Federal Goods and Services Tax (GST) July 1st, 2010 there was a LOT of confusion among those interested in Vancouver Real Estate to say the least!
One of the greatest misconceptions about the HST was that the Harmonized Sales Tax was payable on all real estate transactions in BC.
I speak to a lot of people about Presales in Vancouver and a constant question I hear is “Do I have to pay the full 12% on any new property or presale in Vancouver?” to which I answer “No, there is an HST Rebate in BC.” The next question is a toughie and is always “How much is the HST Rebate on new property in BC?” which until recently I would answer with “I don’t know exactly, best to ask your accountant…” Not anymore!
I found this great Net Harmonized Sales Tax (HST) and Net Property Transfer Tax Calculator that actually calculates the NET taxes payable on a new home purchase here in BC.
This tool calculates the HST rebate as well as the First Time Home Buyers Exemption for BC Property Transfer Tax. Remember, I am not an accountant and I am NOT giving tax advice. Confirm all tax details and calculations with your accountant.
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 Continue Reading…