The update we have all been waiting for: BC Returns To The PST On April 1, 2013 … What does this mean for you?
The BC Provincial Government released a timetable for the elimination of the Harmonized Sales Tax (HST) in an announcement from Victoria this afternoon. The statement says in part the province will return to the use of the Provincial Sales Tax (PST) on April 1, 2013. The statement outlines a series of points including:
* B.C. new housing rebate threshold will be increased to $850,000, meaning more than 90 per cent of newly built homes will now be eligible for a provincial HST rebate of up to $42,500. It is important to note that the HST does not apply to resale housing.
* B.C.’s portion of the HST will continue to apply before April 1, 2013. Purchasers will be eligible for the new higher B.C. HST new housing rebate, of up to $42,500, and builders will continue to claim input tax credits.
* B.C.’s portion of the HST will no longer apply to newly built homes where construction begins on or after April 1, 2013. Builders will once again pay seven per cent PST on their building materials. On average, about two per cent of the home’s final price will again be embedded PST.
