Are you HST ready?
HST becomes applicable as of July 1st. Generally speaking, HST will be applicable to real estate sales wherever GST was applicable before. ($299,000 plus GST will become $299,000 plus HST). HST will also apply to closing costs and commissions.
The HST at 12%, composed of a federal part at 5% and a provincial part at 7%, would apply to a builder's sale of a newly constructed or substantially renovated residential complex, including a multiple unit residential complex (e.g., an apartment building). The sale of housing that has been previously occupied by an individual as a place of residence and that is exempt from GST would also be exempt for purposes of the HST. The definitions in the Excise Tax Act that relate to housing (e.g., builder, residential complex, residential unit, residential condominium unit, substantial renovation) and the CRA's current policies regarding the application of the GST to housing, would generally apply under the HST.
For frequently asked questions regarding Real Estate Transactions, please visit the CRA’s website:
http://www.cra-arc.gc.ca/E/pub/gi/notice246/notice246-e.html
For information regarding the GST/HST New Housing Rebate:
http://www.cra-arc.gc.ca/E/pub/gp/rc4028/README.html