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Information on the pending HST tax

Blog by Shaun Kimmins | January 19th, 2010

BC Comprehensive Integrated Tax Coordination Agreement

The Province and the federal government have signed an agreement on the implementation of HST in British Columbia. The Comprehensive Integrated Tax Coordination Agreement (CITCA) contains the terms and conditions under which B.C. will participate in the HST with the federal government.

HST General Transitional Rules

General rules are provided here to help guide businesses and consumers in a smooth changeover to the proposed Harmonized Sales Tax (HST) in July 2010. The HST Transition Rules specify technical details about paying the HST in the period around July 1, 2010.

Overall, the HST would apply to goods and services purchased on or after July 1, 2010. In addition, the HST would generally apply to prepayments starting on May 1, 2010, for goods or services that would be provided on or after July 1, 2010.

Point-of-Sale Rebates for British Columbia HST

New details of the proposed point-of-sale rebates of the seven per cent B.C. component of the HST that would apply to motor fuels, books, children’s clothing, children’s footwear, children’s car seats and children’s car booster seats, children’s diapers, and feminine hygiene products.

Rebate Threshold and Transitional Rules For New Housing

The Province is proposing to increase the threshold for the B.C. HST new-housing rebate from $400,000 to $525,000 to ensure that, on average, purchasers of new homes up to $525,000 pay no more tax due to harmonization than is currently embedded as PST.

The Province is also proposing transitional rules for new housing. The provincial portion of the HST would not apply to sales of new homes where ownership or possession is transferred before July 1, 2010.  In addition, sales of new homes under written agreements of purchase and sale entered into on or before November 18, 2009, would generally not be subject to the provincial portion of the HST, even if both ownership and possession are transferred on or after July 1, 2010.

More information on the HST