November 25, 2009

HST INFORMATION FROM BC GOV

(More information on the HST:  http://www.gov.bc.ca/hst/)

(The following article and graphic has been obtained from the Ministry of Finance, Province of British Columbia Website:  http://www.fin.gov.bc.ca)

HST General Transitional Rules:

General rules are provided here to help guide businesses and consumers in a smooth changeover to the proposed Harmonized Sales Tax (HST) in July 2010. The HST Transition Rules specify technical details about paying the HST in the period around July 1, 2010.

Overall, the HST would apply to goods and services purchased on or after July 1, 2010. In addition, the HST would generally apply to prepayments starting on May 1, 2010, for goods or services that would be provided on or after July 1, 2010.

Point-of-Sale Rebates for British Columbia HST:

New details of the proposed point-of-sale rebates of the seven per cent B.C. component of the HST that would apply to motor fuels, books, children’s clothing, children’s footwear, children’s car seats and children’s car booster seats, children’s diapers, and feminine hygiene products.

Rebate Threshold and Transitional Rules For New Housing:

The Province is proposing to increase the threshold for the B.C. HST new-housing rebate from $400,000 to $525,000 to ensure that, on average, purchasers of new homes up to $525,000 pay no more tax due to harmonization than is currently embedded as PST.

The Province is also proposing transitional rules for new housing. The provincial portion of the HST would not apply to sales of new homes where ownership or possession is transferred before July 1, 2010.  In addition, sales of new homes under written agreements of purchase and sale entered into on or before November 18, 2009, would generally not be subject to the provincial portion of the HST, even if both ownership and possession are transferred on or after July 1, 2010.

(Government of British Columbia) Public Inquiries
Questions regarding HST general transitional rules:

Vancouver 604 660-4524
Toll-free elsewhere in B.C. 1 877 388-4440
Or e-mail CTBTaxQuestions@gov.bc.ca