LEESA VREUGDE

The federal Harmonized Sales Tax is scheduled to take effect in British Columbia on July 1st 2010.  This is the tax that combines the provincial sales tax and the federal goods and service tax (the GST) to create the NEW Harmonized Sales Tax (HST) with a rate currently set at 12%.  While the application of the HST to trases in real estate is complex, generallt the rules of its application appear to be similar to those of the GST.  This means that the HST will apply to real estate services provided by a licencee, e.g. commissions, as well as to certain ttrades in real estate, e.g. sales of new residential housing and commercial property sales and leases. 

 

Both Canada Revenue Agency and BC's Ministry of Finance have published extensive information concerning the gereal application of the HST, trasitional rules, exemptions, and rebates.  The Canada Revenue Agency information is posted at  www.cra-arc.gc.ca/gncy/hrmnztn/bc/menu-eng.html

The Ministry of finance information is posted at www.sbr.gov.bc.ca/business/Consumer_Taxes/Harmonized_Sales_Tax/hst.html

 

If you are thinking of Buying or Selling and have questions concering transitional rules, exemptions, or your right to apply for a rebate, please seek advice from your trusted accountant or tax lawyer, or from your nearest Canada Revenue Agency office.