HST UPDATE
Both BC and Ontario will be implementing the HST as of July 1st. As you are probably aware, in these two provinces, generally all goods and services that were previously subject to GST at 5% are now subject to HST. The BC HST rate will be 12%, and the Ontario HST rate will be 13%, and the provincial sales taxes that were previously charged on many of these goods and services have been eliminated. As with any tax, there are exceptions. Some items in each province will have “point-of-sale” rebates, so that the provincial portion of the HST is not charged. Some items, such as private sales of used vehicles, aircraft and boats, will be subject to the provincial sales tax (12% in BC, 8% in Ontario), which is not recoverable by GST/HST registrants as an input tax credit.
Both BC and Ontario now provide information which lists in detail many items that are and are not taxable under the HST, and whether the total tax paid is higher under the HST, or not.
GOOD news is that there is NO HST on RESALE HOUSES so do not worry about buying existing houses you don't have to pay the HST. Call me for great mortgage deals tel: 1-647-832-2369 or email me at pdesai@mortgagealliance.com
