Benefits of Harmonized Sales Tax

Benefits for Home Buyers

Currently, new homes in B.C. are subject to the GST, and also carry an estimated two per cent embedded tax as a result of the PST paid on most construction materials.

Under the proposed Harmonized Sales Tax, new homes will be subject to the HST but the embedded PST will be eliminated because builders will be able to recover the tax paid on materials through input tax credits. Used homes will not be subject to the HST.

An essential part of the BC HST will be a tax rebate for new homes.

- A rebate of up to $20,000 will ensure that purchasers of new homes up to $400,000 do not pay more tax due to harmonization than is currently embedded in the price of a new home.
- New homes above $400,000 will be eligible for a $20,000 rebate.
- New home sales will be subject to the HST
- Sales of used homes will not be subject to HST.

For more information on the Harmonized Sales Tax, pleases visit:
http://www.gov.bc.ca/hst

www.lawlessbrown.com