Harmonized Sales Tax (HST) and Vancouver Real Estate by Mike Stewart
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:
- 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.
- Increase in the maximum threshold for rebates on HST from $400,000 to $525,000;
- The maximum rebate will be increased to $26,250;
- 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!