- The HST only applies to “new” residential housing: used (i.e., resale) residential housing is not subject to HST.
- BC will provide a rebate for new housing purchased as a primary residence to ensure that, on average, purchasers of new homes up to $525,000 do not pay any additional tax due to harmonization. That is, they will pay no more in provincial HST than is currently embedded as a PST in the price of a new home. The rebate is available whether the new housing is to be owner occupied or rented.
- The rebate will be 71.43% of the provincial portion of the HST, up to a maximum rebate of $26,250. Purchasers of eligible new homes above $525,000 will be eligible for a rebate of $26,250 (i.e. a rebate on the first $525,000 of value).
- The HST only applies to new housing, so the rebate is only available for new housing.
- The BC new housing rebate will be available for all types of housing currently eligible for the federal GST/HST new housing rebate and will be subject to the same eligibility conditions. Qualifying housing generally includes newly constructed and substantially renovated homes used as a primary place of residence by an individual (or qualifying relation of the individual).
- To support affordable rental housing in the province, BC will also provide a new rental housing rebate of 71.43% of the provincial portion of the HST, up to a maximum rebate of $26,250 per unit.
- The new rental housing rebate will be provided to landlords who construct or substantially renovate their own rental housing and, as a result, are required to self-assess and pay HST under the self-supply rules. The rebate will also be provided to landlords who purchase newly constructed or substantially renovated rental housing in BC and pay HST on the purchase.
- The new rental housing rebate will be available for all types of new or substantially renovated rental housing currently eligible for the federal GST/HST rebate for new residential rental properties, and will be subject to the same eligibility conditions.
- The new housing rebates will be administered by the Canada Revenue Agency.
