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Harmonized Sales Tax (HST)
What is HST?
- It is the merging of the current Provincial Sales Tax (PST) with the Federal Goods and Service Tax (GST) into one new tax.
Who does it affect?
- The new HST affects Ontario and British Columbia.
- Nova Scotia, New Brunswick and Newfoundland have already implemented a Harmonized Tax while Saskatchewan, Manitoba, Quebec and Prince Edward Island all collect a separate Provincial Sales Taxes (PST) or QST for Quebec.
How much is it?
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British Columbia |
Ontario |
Provincial Sales Tax (PST) |
7% |
8% |
Federal Goods and Service Tax (GST) |
5% |
5% |
New Harmonized Sales Tax (HST) |
12% |
13% |
When will the HST be implemented?
How does it affect the sale of my current owner occupied principal residence (re-sale)?
- The sale of housing that has been previously occupied by an individual as a place of residence and that was exempt from GST would also be exempt from HST.
When does the HST apply to the sale of a new construction home or new rental property?
- Builders’ sales of newly constructed or substantially renovated homes would be subject to HST when both ownership and possession of the home are transferred after June 30, 2010.
- The provincial portion of HST would not apply to builders’ sales of newly constructed or substantially renovated homes that are taxable under the GST where, under a written agreement of purchase and sale, ownership or possession of the home is transferred before July 1, 2010.
- The HST would not apply if either the ownership or possession of the complex is transferred, under a written agreement of purchase and sale, to the purchaser before July 1, 2010 or if the sale was entered into on or before June 18, 2009 in Ontario and November 18, 2009 in British Columbia, regardless of the ownership or possession date.
Is there a Housing Rebate?
- Yes, new housing rebates would apply when HST is charged and the purchaser would have qualified for a GST rebate.
- Please visit http://www.rev.gov.on.ca/en/taxchange/index.html and http://www.gov.bc.ca/hst/ for more information on the rebate.
Are other closing costs subject to HST?
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