HST Information
The HST (Harmonized Sales Tax) is a 12% federal tax. It is a value added tax and in the case of real estate, it applies to the purchase of new construction and on the resale of accommodations that have been rented out for short term / nightly rentals. It also applies to most of the services provided in completing a real estate transaction.
The payment of HST can be deferred if the new purchaser is going to continue to offer the property for short term or nightly rental for 90% of the time and becomes a HST registrant. Becoming a HST registrant is a straightforward procedure of completing four forms. Once you are a HST registrant, you are entitled to claim credits for the HST that you pay, for example on legal fees, property management fees, and utilities such as electricity, gas, cable and telephone. You are then required to charge, collect and remit HST on the nightly rentals, which in some cases may be done through your property manager. You will be required to file an annual HST return as well.
HST rebate is available under certain conditions where the house is to be a principal residence. However, most properties in Whistler do not apply.
HST on New Homes
When you buy a newly constructed home, condominium or townhouse, the entire purchase price including land is taxable. If the home is going to be your primary place of residence, it may qualify for a partial HST rebate, depending upon the sale price. If the property is to be rented to tenants, the full 12% HST is charged on the purchase price.
HST on Resale Homes
There is no HST on the purchase price of a used residential property that has been occupied as a residence before you bought it. Used residential property includes an owner occupied house, condominium, apartment, summer cottage, vacation property or non-commercial hobby farm.
Your Whistler Real Estate Agent has more details and can be contacted regarding this or any other question you may have about your Whistler real estate purchase.