Harmonized Sales Tax (HST)
All residents of British Columbia are aware by now that commencing July 1, 2010 that the Provincial Sales Tax (PST) and the national Goods and Services Tax (GST) will be combined into a single tax called Harmonsized Sales Tax (HST). The new rate of 12% combines the current rate of 7% PST and the 5% GST. This obviously impacts everyone in their daily lives, but I wanted to summarize the implcations as they relate to real estate. I have attached a complete summary published by the Vancouver Real Estate Board that can be accessed be clicking on the following link: HST Client Information.
The first major item to clarify is that HST does NOT apply to homes that are being purchased as a resale, only to new homes. HST does however apply to the following items associated with purchasing either a new or resale home;
For the purchase of New Homes, there are rebates available for certain types of homes. Please review the HST Client Information for the details or give me a call to discuss.