Purchasers of new housing in BC

The HST at 12% (composed of the 5% federal part and the 7% provincial part) will generally apply to a taxable sale by a builder of newly constructed or substantially renovated housing where both ownership and possession of the housing are transferred to the purchaser, under the agreement for the sale, after June 2010.

However, the HST will not apply to a grandparented sale of newly constructed or substantially renovated housing. The HST will also not apply to a sale of newly constructed or substantially renovated housing if either ownership or possession was transferred to the purchaser before July 2010 under a written agreement of purchase and sale, regardless of when the agreement was entered into. GST at 5% will apply to these sales. Sales of housing that are exempt from the GST will still be exempt under the HST. For example, if you were to buy a house that was previously occupied by an individual as a place of residence, the sale would generally be exempt from the HST.

If the HST applies to the sale of housing, the purchaser may be entitled to claim a:

• GST new housing rebate and/or a BC new housing rebate; or
• GST new residential rental property rebate and/or a BC new residential rental property rebate.

For more information, see BC new housing rebate and BC new residential rental property rebates.

Forms and publications

• 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-078, Harmonized Sales Tax: Purchasers of New Housing in British Columbia