BC new housing rebate for the purchase of new housing (building and land)

A BC new housing rebate may be available for some of the provincial part of the HST paid by an individual on the purchase of newly constructed or substantially renovated housing for use as the primary place of residence of the individual or a relation of the individual.

An individual will be entitled to claim both a BC new housing rebate and a GST new housing rebate if all of the conditions for claiming each rebate are met. The conditions for claiming a BC new housing rebate will be the same as the conditions for claiming a GST new housing rebate, with the exception of the $450,000 maximum threshold amount (see next paragraph). For more information, see Guide RC4028, GST/HST New Housing Rebate.

If the purchase price of newly constructed or substantially renovated housing is $450,000 or more, a GST new housing rebate will not be available. However, a BC new housing rebate will be available, regardless of the purchase price, as long as all of the other conditions for claiming the rebate are met.

The BC new housing rebate will be equal to 71.43% of the provincial part of the HST paid, up to a maximum BC rebate amount (see below).

Under proposed changes, the maximum amounts for the British Columbia new housing rebates for owner-built houses and for houses purchased from a builder would increase. For more information, see Proposed increase to the maximum rebate amounts for the British Columbia new housing rebate.

Example
An individual purchased a new house, including the land, for $300,000 to use as the primary place of residence of the individual or a relation of the individual. The individual paid HST of $36,000 ($300,000 x 12%) and met all of the other conditions for claiming a BC new housing rebate and a GST new housing rebate.

The total amount of the new housing rebate to which the individual will be entitled will be calculated by adding the amount of the GST new housing rebate of $5,400 ($300,000 x 5% x 36%) for the federal part of the HST and the amount of the BC new housing rebate of $15,000 ($300,000 x 7% x 71.43%) for the provincial part of the HST. Therefore, the individual will be entitled to claim a total new housing rebate of $20,400 ($5,400 + $15,000).

In some cases, only the GST at 5% will apply to the sale of new housing. This will be the case where, for example, either ownership or possession of the housing transferred before July 1, 2010, or the sale of the housing was grandparented. Since the HST will not apply to a grandparented sale, a BC new housing rebate will not be available in this case. For more information, see Grandparented sales of new housing in BC.

The BC new housing rebate will be administered in a manner similar to the GST new housing rebate. Builders will be able to pay or credit the BC new housing rebate to the individual purchaser of new housing, just as they currently can pay or credit the GST new housing rebate. If a builder did not pay or credit the rebate at the time of purchase, the individual will be able to file a rebate application for the BC new housing rebate with us directly. To apply for this rebate, use Form RC7190-BC, GST190 British Columbia Rebate Schedule.

Forms and publications

• Guide RC4028, GST/HST New Housing Rebate
• Form RC7190-BC, GST190 British Columbia Rebate Schedule
• GST/HST NOTICE246, Harmonized Sales Tax for British Columbia - Questions and Answers on Housing Rebates and Transitional Rules for Housing and Other Real Property Situated in British Columbia
• GST/HST Info Sheet GI-080, Harmonized Sales Tax: British Columbia New Housing Rebate
• GST/HST Info Sheet GI-086, Harmonized Sales Tax: Stated Price Net of GST/HST New Housing Rebates in British Columbia
• GST/HST Info Sheet GI-089, Harmonized Sales Tax: Stated Price Net of GST/HST New Housing Rebates and the British Columbia PST Transitional New Housing Rebate