HST
January 19 2016 Posted by Siemens Group
Effective April 1st, 2013 BC will transition from HST to a combination of GST and PST. In order to prevent a situation in which potential purchasers of new homes would simply wait until GST to purchase (to take advantage of the fact that new housing is PST exempt), the BC government has offered the following incentives to people who purchase properties completing prior to April 1st, 2013:
- The threshold price to receive the maximum 5% rebate on HST was increased from $525,000 to $850,000.
- There is a credit of up to $10,000 for first-time buyers who are purchasing a newly built home
For properties where construction begins prior to April 1st, 2013, but ownership and possession occur after, purchasers will pay 5% GST, and also a 2% transitional provincial tax. This transitional tax is to prevent builders from being able to build homes that using materials that are tax-exempt (under HST) and then sell them in a more favorable tax environment.
Click here for a useful link providing information about the return to PST.
Click here for a calculator that can help you estimate your taxes and rebates, both under HST and PST.