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.
*Warning: do not use this calculator for leasehold properties. The rules have recently changed and our calculator does not work for those types of properties. The calculator works for fee simple lands, but not for leasehold properties. Our apologies, and we will correct as soon as possible.
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 of 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.
There is a potential rebate of 36% of the G.S.T. paid for a buyer who purchases the home with the intention of making it her or his principal residence – but there are qualifications:
Note that the Developer may agree in the Contract to credit the Purchaser on completion for the rebate, but not all Developers allow this. If they do not, the Purchaser will have to pay the full 5% G.S.T. on completion and will then have to apply directly to C.R.A. for the G.S.T. New Housing Rebate after closing. This means the Purchaser will have to ensure that they have additional funds to cover the 5% G.S.T. on completion. Note the G.S.T. New Housing Rebate is not available to a corporation or a partnership.
There is also a potential rebate of 36% of the G.S.T. paid for a buyer who purchases the home with the intention of making it available for rent, again with qualifications:
Like the New Housing Rebate, the full Rental Rebate is only available on new homes priced up to $350,000. A partial G.S.T. NRR Rebate is available for homes priced between $350,000 and $450,000. The actual rebate calculations are identical to rebate calculations for the G.S.T. New Housing Rebate.
Note the Developer is not allowed to credit the Purchaser on completion with the Rental Rebate. This means the Purchaser will have to pay the full 5% G.S.T. on completion and then claim the Rebate afterwards directly from C.R.A.. The Purchaser will have to ensure that they have the necessary funds to cover the 5% G.S.T. on
Yes, for a purchase of a newly constructed or substantially renovated mobile home or floating home, 5% G.S.T. will apply on the purchase price of the mobile home or floating home. The Purchaser will be able to claim the various rebates, as applicable.
Maybe (how is that for a definitive answer!!). Examples of when G.S.T. would be applicable include: 1) the sale of land that is capital property that had been used primarily in a business; 2) the sale of land in the course of a business; and 3) the sale of a parcel of land created by subdividing another parcel into more than two parts. The sale of land by an individual that had been kept for personal use would be exempt from G.S.T.