Returning to the PST and GST on April 1

Other

On Monday, April 1, the Harmonized Sales Tax (HST) will be replaced by the federal Goods and Services Tax (GST) and the BC Provincial Sales Tax (PST).

What this means to you:

As we move back to the GST and PST tax structure, it’s important to remember that:

• sales tax on a new home will be reduced to 5% GST plus 2% BC Transition Tax (total 7%) from the current 12%; and
• tax on real estate commissions will be reduced to 5% from the current 12%.

These reduced tax rates apply to all transactions that are payable on or after April 1.

Available Resources

The Board has prepared two fact sheets:

• GST and the 2% BC Transition Tax on new homes; and
• information about the HST/PST new housing transitional rules.

Visit: www.realtorlink.ca and under Latest News you will see both fact sheets.

The BC Real Estate Association has developed a PST transition site at: www.bcrea.bc.ca/government-relations/hst-pst-resources/pst-transition-rules

The BC Ministry of Finance has prepared bulletins, seminars, videos, webinars, and registration information for the return to the PST. Visit: www.gov.bc.ca/pst

WEBForms revised to reflect the change back to the GST

On April 2, the following forms will have the HST replaced with GST. Please do not use the previous version.

• Authority to Lease
• Assignment of Contract of Purchase and Sale – New Development
• Assignment of Contract of Purchase and Sale – Non Developer
• Contract of Purchase and Sale
• Contract of Purchase and Sale For Commercial Real Estate
• Contract of Purchase and Sale of a Leasehold Interest in Indian Reserve Lands
• Contract of Purchase and Sale of a Manufactured Home on a Rental Pad
• Exclusive Authority to Lease
• Exclusive Buyer’s Agency Contract
• Exclusive Buyer’s Agency Contract – Large Print
• Exclusive Tenant's Agency Contract
• Fee Agreements (all 4 agreements)
• Lease Report and Payout Instructions
• Multiple Listing Contract
• Multiple Listing Contract – Large Print
• Offer to Lease