HST TO PST – TRANSITION RULES FOR REAL ESTATE PROPERTY

WHEN DOES HST APPLY, AND WHEN DOES GST APPLY?
HST applies if tax becomes payable before April 1, 2013. GST applies where tax becomes payable after March 31, 2013. In addition, the BC transition tax may then apply where construction or substantial renovation is at least 10% complete on April 1, 2013.

WHEN DOES THE TAX BECOME PAYABLE?
Except for the sale of certain residential strata units, the tax is payable on the earlier of the following dates:

• when the seller transfers ownership (also known as the completion date) of the new home to the buyer, or
• when the seller transfers possession of the new home to the buyer under the Contract of Purchase and Sale.

WHEN DOES THE TAX BECOME PAYABLE WHEN THE TRANSACTION INVOLVES A STRATA UNIT?
The general tax payable rule will apply for strata’s except where the strata plan hasn’t been registered as a condominium by the date possession is transferred. The tax payable is then based on the earlier of the following dates:

• when the seller transfers ownership (also known as the completion date), OR
• 60 days following the date the strata plan is registered.