HST At A Glance / Summary Only.

HST At A Glance / Summary Only.

Posted on 12. March 2010 14:34 by Kevin Flaherty

HST =13%

Combination of the current 8% Provincial Sales Tax and the 5% federal GST creating a 13% Harmonized Sales Tax (HST)

The HST will come into effect on July 1, 2010 – however, there are transitional rules.

HST WILL apply to: (not a complete list)

The purchase of newly constructed or substantially renovated homes.
The services associated with the purchase of new homes and re‐sale homes such as real estate commissions, legal fees, home inspection fees and moving costs.
commercial property rentals and leases.

HST WILL NOT apply to: (not a complete list)
The purchase of re‐sale homes
Sale of housing that has been previously occupied by an individual as a place of residence and that is exempt from GST would also be exempt for purposes of HST
Residential rent, condominium fees.
Home insurance (which had been subject to provincial tax, but not GST).
Mortgage interest costs.

Kevin Flaherty
Direct: 1-877-352-4378
Web: http://Flaherty.ca



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Comments (2) -

3/13/2010 1:10:00 PM #

Kevin:

With respect, the purchaser of a "used" home will not pay HST on the purchase price, BUT they will pay on all the services related to the purchase of the house.  The services will probably add $1500 to the average home cost of purchase.

Colin

Colin Hendry Canada

3/14/2010 3:27:58 PM #

Thank you for your post Colin.  You are right.  The purpose of this post was to provide and summary only and was not a complete list.  People have been asking me for a summary because even the basics can be a bit confusing.  Obviously the main issue here is not HST on service but rather when it applies to the cost of the entire hosue.

Kevin Flaherty

qkevinflaherty Canada

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