When And How Much?
G.S.T. applies to new or substantially renovated housing
Substantially renovated is defined in the legislation as the removal or replacement of most of the house construction components except for the foundation, external walls, interior supporting walls, floor, roof and staircase.
G.S.T. does not apply to used residential housing
Unless the property falls within certain categories, such as strata hotel, short term rental property, mixed use property or other such items. Used residential housing which has been used as a principal residence or long term rental is not subject to G.S.T. but if any unique facts exist you should contact an expert.
The rate of tax for G.S.T. is 5% – subject to any rebates, discussed below.
To determine the GST, simply type in the purchase price in the appropriate box, then click on the final purchase price. Note these numbers are the same for both the Homeowner and the Investor Rebate but keep in mind that for certain developers the grant may be claimed on closing. Be careful with this, as not all developers allow the Buyer to claim the rebate, resulting in the Buyer requiring all the funds, then applying and waiting several months for the rebate to arrive. The Investor Rebate is never given on closing, so the Buyer will need to pay all the GST and then apply for a refund.
For the reverse calculator (when the GST in included in the price) simply type the final purchase price into the box and then click in the Purchase Price box.