GST / 2% Transitional Tax Rules – BC

Effective April 1, 2013, the province of British Columbia will no longer charge 12% HST on new construction homes. As of April 1, 2013, the province will charge 5% GST on new homes and under specific circumstances an additional 2% Transition Tax.

The lender may submit the total purchase price including applicable taxes (exclusive of any rebates). Any taxes included in the purchase price should be noted in the purchase and sale agreement. The following general provisions will apply:

  • In BC, the GST rate on new construction housing will be 5% as of April 1, 2013.
  • The Transition Tax of 2% is applicable where construction is at least 10% complete as of April 1, 2013, and either possession or ownership transfers on or after April 1, 2013 but before April 1, 2015.
  • New home buyers in BC may be eligible for the federal GST new housing rebate.

For more information please reference the following links: