Re: HST Being Applied to Real Estate
Please Be advised that the HST (HARMONIZED SALES TAX) COMES INTO EFFECT ON JULY 1st, 2010, however there are situations where transition to HST may in fact affect the Buyer or Seller in a Real Estate Transaction.
1-800-959-8287 is the telephone number for HST Rulings.
ALTHOUGH I WILL BE MORE THAN HAPPY TO TRY TO EXPLAIN THE TRANSITION RULES AS THEY APPLY TO YOU, IT IS STRONGLY SUGGESTED THAT ALL CLIENTS SEEK THE ADVICE OF HST RULINGS DEPARTMENT, YOUR ACCOUNTANT OR YOUR LAWYER.
* HST shall apply to new build homes and will be available for partial rebate similar to GST. (provided rebate is assigned to builder)
* Resale Homes normally would not be subject to HST (but may if substantial renovations have been done recently or used as a home based business)
* Vacant lots may or may not be effected
* Farms may be effected
However, it is not likely that the government will not be introducing advertisement or leaflets to help you understand the HST…
HST will affect but is not limited to, the following services in a real estate transaction:
1) Lawyers fees
2) Home inspection fees
3) Movers fees
4) Real estate commissions
5) Basically all services that are used during the real estate transaction
AS WE MOVE THROUGH THE TRANSITION PERIOD and BEYOND JULY 1, 2010, PLEASE UNDERSTAND THAT AS BUSINESS OWNERS, WE ARE ONLY ACTING AS COLLECTION/REMITTANCE AGENTS FOR THE HST DEPARTMENT.
(the phone number above will assist you in determining all of the affects HST will have on your day-to-day purchases as well.)
