Effective July 1, 2010, BC’s 7% provincial retail sales tax is harmonized with the 5% federal goods and services tax (GST), creating a single, value-added HST of 12%. The BC HST will generally use the same rules and tax base as the GST, which means NEW homes in BC that are subject to GST will also become subject to the provincial component of the HST. This DOES NOT apply to resale homes.

Good News! A 5% rebate of the purchase price is available, up to a maximum of $26,250.

New housing rebate for new homes purchased as a primary residence will receive a partial rebate (equal to 5% of the purchase price) of the provincial portion of the HST for new housing, which will ensure that new homes up to $525,000 (increased from $400,000) will bear no more tax than under the PST system, while homes above $525,000 will receive a flat rebate of $26,250. New home buyers may also be eligible for the federal GST new housing rebate, which generally equals 36% of the tax paid on the first $350,000 of the purchase price. The amount of the GST rebate declines for homes priced between $350,000 and less than $450,000.

The BC HST rebate is available on the same types of new residential properties as the GST new housing rebate. Qualifying housing include substantially renovated housing, co-operative housing, owner-built housing, housing on leased land, mobile homes and modular homes for use as primary residences. Recreational properties such as cottages and ski chalets not used as primary residences would generally not qualify for the new housing rebate. An HST rebate for new rental housing is also available, which is similar to the rebate for new homes.

For additional information, or if you have specific questions on the HST and NEW housing, please call or email.