HST/PST Resources on BCREA Online
On February 17, the provincial government made several important announcements that will affect BC housing and real estate. BCREA is very pleased with these measures, which demonstrate the government’s recognition of the difficulties experienced by the new housing sector over the past few years.
PST Transition Rules
April 1, 2013 is the target date for implementation of the Provincial Sales Tax (PST). Some key, general elements of the rules include the following:
- The Harmonized Sales Tax (HST) will cease to apply to sales of real property (including residential real property) if ownership and possession of the property transfer on or after April 1, 2013. This will be the case for sales of new housing, regardless of whether the agreement of purchase and sale was entered into before April 1, 2013 or whether construction of the new housing began before April 1, 2013.
- For newly-built homes where construction is at least ten per cent complete by April 1, 2013, and ownership and possession occur before April 1, 2015, buyers will not pay the seven per cent provincial portion of the HST. Instead, buyers will pay a temporary, transitional provincial tax of two per cent on the full house price, plus the five per cent Goods and Services Tax (GST).
- After April 1, 2013, the PST will not apply to real property, or to real estate commissions.
To help provide clarity on this transition, BCREA has compiled an FAQ, specifically for REALTORS® and their clients, that includes questions such as:
- When does HST apply, and when does federal GST apply?
- Who will be responsible for paying the GST?
- Will the PST apply to real property?
To view the PST transition rules FAQ on BCREA Online, visit www.bcrea.bc.ca/government-relations/pst-transition-rules.
Enhanced BC HST New Housing Rebate
From April 1, 2012 to March 31, 2013, the BC HST New Housing Rebate threshold will increase to $850,000 (from $525,000), with a maximum rebate of $42,500.
To provide more information, BCREA has compiled an FAQ about this rebate. Answers can be found to questions such as:
- How will the current BC HST New Housing Rebate change?
- Is the April 1, 2012 date based on the contract/offer date or the completion date?
- Is there a problem with changing the dates in the contract so the buyer can take advantage of the enhanced BC HST new housing rebate?
For more information and an FAQ about the Enhanced BC HST New Housing Rebate, visit www.bcrea.bc.ca/government-relations/hst-new-housing-rebate.
Grant for New Secondary and Recreational Homes
From April 1, 2012 to March 31, 2013, a provincial grant of up to $42,500 will be available to buyers of new secondary or recreational homes outside the Greater Vancouver and Capital regional districts priced up to $850,000. Click here for more information.
