# HST information on all new property purchases (Not Re-Sale) effective in BC July 01 2010

HST on all NEW properties (NOT re-sale) effective July 1st, 2010
5% GST plus 7% PST = 12% HST

*** HST applicable on all NEW properties completed AFTER June, 2010 ***

1) GRANDPARENTED
* Any pre-sale contract entered into BEFORE November 18th, 2009 that
completes after July 1st, 2010- NO HST- ONLY GST
* Any pre-sale contract entered into AFTER November 18th, 2009 that
completes after June, 2010- HST

2) HST REBATES

GST portion: maximum 36% rebate \$6300 up to \$350,000 ... rebate pro-rated
\$350,000 to \$450,000 ... NO REBATE over \$450,000
example:
\$350,000 x 5% = \$17,500
36% rebate = \$17,500 x 36% = \$6300
Net GST = \$17,500 - \$6300 = \$11,200

PST portion: maximum 71.43% rebate = \$26,250 ... No rebate over \$525,000
example:
\$350,000 x 7% = \$24,500
71.43% rebate = \$24,500 x 71.43% = \$17,500
Net PST = \$24,500 - \$17,500 = \$7000 (Net same as 2% of purchase price)

TOTAL HST on a \$350,000 purchase = \$11,200 plus \$7000 = \$18,200

example: GST on \$400,000
\$400,000 x 5% = \$20,000
rebate: \$6300 x (450-400)/100 = 6300 x 50/100 = \$3150
Net GST = \$20,000 - \$3100 = \$16,850

example: HST on \$525,000
\$525,000 x 7% = \$36,750
rebate 71.43%= \$36,750 x 71.43% = \$26,250
Net PST = \$36,750 - \$26,250 = \$10,500 (Net sames as 2% of purchase price)

3) HST on Commission
* If 90% of services done before July 1, 2010- No HST
That is, listed June 1, 2010, completes July 2, 2010 ... NO HST ... ONLY GST
* if listed May 1, 2010, completes July 31, 2010 ... 2 months before July 1
and 1 month after July 1 ... 2/3 commission GST plus 1/3 commission HST