HST Transitional Rules – British Columbia

Immediate action is required for new housing sales effective February 18th, 2012. Please review the article for highlights of the necessary disclosure requirements in purchase contracts starting effective February 18th, 2012.

On February 17, 2012 the BC Minister of Finance and the Federal Department of Finance released rules for the transition from Harmonized Sales Tax (HST) under the Excise Tax Act (Canada) (ETA) to Provincial Sales Tax (PST) under BC legislation. The rules include general transitional rules, an enhancement of the new housing rebate, a transitional housing tax, and additional disclosure obligations on builders.

General Transitional Rules

The general transitional rules will be based on the time at which tax in respect of the supply becomes payable under the ETA.