Blog by Linda Book

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Topic of Interest - HST

HST EXEMPT – Important Dates - November 18, 2009 and July 1, 2010 for RESIDENTIAL REAL ESTATE

On July 1, 2010 the BC Government plans to implement the 12% Harmonized Sales Tax (HST).  This is a combination of the 7% Provincial Sales Tax (PST) and the 5% Federal Goods & Services Tax (GST).

When it comes to HST there are 2 dates that are important:  November 18, 2009 and July 2010.  

To help homebuyers and builders transition to the HST, transitional rules would be provided for new housing transactions that straddle the HST implementation date of July 1, 2010.

Generally, builders’ sales of newly constructed or substantially renovated homes would be subject to the provincial component of the HST where both ownership and possession of the home are transferred after June 2010.  Grandparenting would be provided for certain contracts.  For sales of new homes under written contracts of purchase and sale entered into on or before November 18, 2009, they would be grandparented, such that these sales would not be subject to the provincial component of the HST and would not be eligible for B.C. housing rebates.  This would include single homes, including detached homes, semi-detached homes, and attached homes only.

If a buyer entered into a Contract of Purchase and Sale of a newly constructed or substantially renovated home, after November 18, 2009 and close before July 2010,  these sales would not be subject to the provincial component of the HST.

Link to 22 page document on HST from BC Government Website
http://www.rev.gov.bc.ca/documents_library/shared_documents/HST/HST_General_Transitional_Rules_Notice.pdf



The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult a lawyer for individual advice regarding your own situation as well as to verify accuracy of this site's content.

Stay tuned for more HST info to follow.