PST Transition Rules
April 1, 2013 is the target date for implementation of the Provincial Sales Tax (PST). Some key, general elements of the rules include the following:
• The Harmonized Sales Tax (HST) will cease to apply to sales of real property (including residential real property) if ownership and possession of the property transfer on or after April 1, 2013. This will be the case for sales of new housing, regardless of whether the agreement of purchase and sale was entered into before April 1, 2013 or whether construction of the new housing began before April 1, 2013.
• For newly-built homes where construction is at least ten per cent complete by April 1, 2013, and ownership and possession occur before April 1, 2015, buyers will not pay the seven per cent provincial portion of the HST. Instead, buyers will pay a temporary, transitional provincial tax of two per cent on the full house price, plus the five per cent Goods and Services Tax (GST).
• After April 1, 2013, the PST will not apply to real property, or to real estate commissions.
Lake Okanagan Realty