Will the 13% HST Apply on: Closed Before
July 1, 2010
Closed On or After
July 1, 2010
Notes

New Residential Property

5% GST only. Even if it’s a Condo and occupancy occurred prior to July 1, 2010 but final closing did not.

Yes, unless agreement of purchase and sale was accepted prior to June 19, 2009. Or Condo Occupancy occurred prior to July 1, 2010.

Builders must always include in the agreement of purchase and sale if HST or the provincial component is included or not in the purchase price, otherwise the builder pays.

In order to accommodate the purchasers and their final mortgage amounts, builders will often include the GST and PST rebates in the purchase price. However, that would require the purchaser to be eligible and qualify such that the property being purchased is the primary place of residence, and the purchaser or a relation of his/her (by marriage, adoption, common law, siblings, parents, children and grandchildren) will move in within the first 9 months of closing. Otherwise the potential rebates will be charged back to the purchaser on closing. The purchaser will then have to apply separately for the rebates depending on which they qualify for (e.g. primary residence or rental property)

Substantially Renovated Residential Property

5% GST only

Yes

Substantially renovated is defined by CRA to be when roughly 90% of the interior of a building (excluding the foundation, external walls, internal supporting walls, roof, floors and staircases) has been removed or replaced.

Resale Residential Property including Apartment Buildings or Multi-Unit Housing

None

None

If mixed use, HST will be payable on the percentage proportion that is commercial.

Vacant Land for Residential Personal Use

None

None

 

Resale Vacation or Cottage Homes

None if personally used for 50% of the time owned or more. Otherwise, if rented, then yes.

None if personally used for 50% of the time owned or more. Otherwise, if rented, then yes.

 

New or Resale Commercial Property

5% GST only

Yes, regardless of when the agreement of purchase and sale was signed.

If the Buyer is an HST/GST registrant (has an HST number or GST number) then the buyer can undertake to “self assess” and therefore no HST will be payable on closing.

Vacant Land from Farming or Commercial Use

5% GST only

Yes

Certain exemptions apply and if sold as part of a business, the Buyer can “self assess” as an HST/GST registrant.

Real Estate Commissions

5% GST only

Yes

If a sale contract was entered into and at least 90% of the services were performed prior to July 1, 2010 then only the 5% GST will apply.

Mortgage Brokerage Fees

None as it is considered a financial service exempt from sales taxes

None as it is considered a financial service exempt from sales taxes

N/A

Residential Rent

None also exempt

None also exempt

N/A

Commercial Rent

5% GST only (can be reduced by payer’s Input Tax Credits (ITCs))

Yes (can be reduced by payer’s Input Tax Credits (ITCs))

N/A

Residential Condo Maintenance Fees

None also exempt

None also exempt

N/A

Commercial Condo Maintenance Fees

5% GST only (can be reduced by payer’s Input Tax Credits, “ITCs”)

Yes (can be reduced by payer’s Input Tax Credits, “ITCs”)

N/A

Building Materials, Trades, Contractors and Renovation Services

5% GST on services,

5% GST plus 8% PST on most products

Yes

N/A

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