Effective April 1, 2013, the 12% HST for British Columbia, comprising of a 5% federal tax and a 7% provincial tax (the provincial tax) will no longer apply in British Columbia.
This is good news for those of you who are thinking of buying a new construction home. For the rest of us it is business as usual. The change will have little impact on resale homes in terms of taxes. HST was never applied to re-sale homes, it only applied to new construction or substantially renovated homes. For Sellers, if the sale of their home completes after April 1, 2013 then only 5% GST will be charged on commissions.
On April 1, 2013 purchasers will pay 5% federal tax on new construction homes. For a period of 2 years after April 1, 2013 a transitional 2% tax will be charged instead of the 7% provincial tax on new construction homes where construction began before April 1, 2013 but possession was afterwards.
Please have a look at this link I have provided to help answer questions about the transition.
If you are planning on purchasing a new home please visit this link below to better understand how it will impact your purchase.
I have also added a link to a calculator to help get an idea on the cost.