Some more info on the Harmonized Sales Tax (HST). For more, please go to: www.cra.gc.ca/harmonization ... Choose a province ... Forms & Publications... NOTICE246 ... PDFnotice ...
HST on all NEW properties (NOT re-sale) effective July 1st, 2010
5% GST plus 7% PST = 12% HST
*** HST applicable on all NEW properties completed AFTER June, 2010 ***
1) GRANDPARENTED
* Any pre-sale contract entered into BEFORE November 18th, 2009 that
completes after July 1st, 2010- NO HST- ONLY GST
* Any pre-sale contract entered into AFTER November 18th, 2009 that
completes after June, 2010- HST
2) HST REBATES
GST portion: maximum 36% rebate $6300 up to $350,000 ... rebate pro-rated
$350,000 to $450,000 ... NO REBATE over $450,000
example:
$350,000 x 5% = $17,500
36% rebate = $17,500 x 36% = $6300
Net GST = $17,500 - $6300 = $11,200
PST portion: maximum 71.43% rebate = $26,250 ... No rebate over $525,000
example:
$350,000 x 7% = $24,500
71.43% rebate = $24,500 x 71.43% = $17,500
Net PST = $24,500 - $17,500 = $7000 (Net same as 2% of purchase price)
TOTAL HST on a $350,000 purchase = $11,200 plus $7000 = $18,200
example: GST on $400,000
$400,000 x 5% = $20,000
rebate: $6300 x (450-400)/100 = 6300 x 50/100 = $3150
Net GST = $20,000 - $3100 = $16,850
example: HST on $525,000
$525,000 x 7% = $36,750
rebate 71.43%= $36,750 x 71.43% = $26,250
Net PST = $36,750 - $26,250 = $10,500 (Net sames as 2% of purchase price)
3) HST on Commission
* If 90% of services done before July 1, 2010- No HST
That is, listed June 1, 2010, completes July 2, 2010 ... NO HST ... ONLY GST
* if listed May 1, 2010, completes July 31, 2010 ... 2 months before July 1
and 1 month after July 1 ... 2/3 commission GST plus 1/3 commission HST
Please contact Shaun for more information on the HST and visit Shaun at Century 21 IN Town Realty.
More Information on the pending HST (HArmonized Sales Tax)
Blog by Mike Cook | January 20th, 2010