NEW RULES FOR HST UPDATE

(February 23, 2012 )

HIGHLIGHTS OF THE RETURN TO PST ANNOUNCED BY THE BC GOVERNMENT February 17, 2012.
TODAY ␣    For Completion Dates between NOW and April 1, 2012, the current
tax (HST) still applies with the same rebate programs. TRANSITIONAL RULES
␣    For Completion Dates between April 1, 2012 and April 1, 2013, transitional rules will apply. GST and PST will be charged. A PST new housing rebate will be available of 71.43% of the PST portion to a maximum of $42,500.
␣    Or, in other words, if you buy a home of $850,000 or less, you will pay the usual GST, plus PST of 2% after the rebate is taken into account.
␣    For homes constructed partly before April 1, 2013 and partly after April 1, 2013, there will be a mechanism for calculating which taxes and which rebates will apply.
␣    The transitional rules will apply to new rental housing and to new second and recreational homes outside of the Capital and Greater Vancouver Regional Districts.
NO PST AFTER APRIL 1, 2013
␣    For homes constructed entirely after April 1, 2013, PST will not be charged. (Note: builders will not be able to claim input tax credits for PST paid on building materials, so home prices may be adversely affected). GST will still be payable and the existing federal GST rebates programs remain in place.
Follow these links for details of the new tax programs from the Provincial Government:
http://www.pstinbc.ca/media/2012_housing_rules_FEB.pdf http://www.pstinbc.ca/buying_goods/buying_a_home/new_home_tax_calculator