Tax Rebates and Exemptions

HST Rebates in British Columbia

If you are a resident of British Columbia (BC) and looking to purchase a new home, it’s important to understand the HST rebate options available to you. The BC government offers various rebates to help offset the impact of the Harmonized Sales Tax (HST) on new housing purchases. Here are some key points to consider:

1. BC HST New Housing Rebate: The BC government provides a rebate on the provincial portion of the HST paid on new homes. This rebate is available for primary residences and applies to both houses and condominiums. The rebate amount varies depending on the purchase price of the property.
2. HST Rebate Calculator BC: To determine the exact amount of rebate you may be eligible for, you can use the HST rebate calculator provided by the BC government. This calculator takes into account factors such as the purchase price and whether the property is used as a primary residence.
3. HST Rebate for New Homes: If you are purchasing a newly constructed home, you may be eligible for the federal portion of the HST rebate. This rebate helps offset the impact of the HST on the purchase price of the property.
4. BC HST Rebates: In addition to the new housing rebate, there are other rebates and exemptions available in BC to help reduce the impact of the HST. These include rebates for eligible public service bodies such as municipalities, schools, and registered charities.
5. Transitioning from HST to PST: It’s important to note that the BC government has transitioned back to the Provincial Sales Tax (PST) system. The PST was reinstated on April 1, 2013, at a general tax rate of seven per cent. The goods and services that were previously exempt under PST are once again exempt.

For more information on HST rebates, you can visit the official government website and navigate to the Sales Tax and Goods and Services Tax section. Additionally, if you are interested in resale housing, you can find more information on the official site as well. It’s important to note that while the HST may result in higher taxes for some items, there are certain goods, such as luxury vehicles, that may have slightly lower taxes with the HST. It’s worth considering these factors when making purchasing decisions.

Exemptions Under the HST

Certain exemptions are part of the GST/HST structure.

People do not pay any HST on basic groceries, prescription drugs, residential rent, most health and dental services and most educational services.

That is because no GST/HST applies to these goods and services – they are either exempt or have a 0 per cent tax rate.

Returning to PST

• The Government is working to bring back the PST as qickly as we responsibly can.
• An action plan has been established to ensure an effective and orderly transition back.
• The Independent Panel report released in May 2011 estimated it would take 18-24 months to complete the process.
• Senior Citizens

B.C. Negotiated Rebates

As part of the HST negotiations, the federal government agreed to administer certain rebates for B.C. Some of these are point-of-sale or “instant” rebates, which are like PST exemptions, and some you need to apply for.

Under the harmonization agreement, B.C. is able to provide a limited number of provincial point-of-sale rebates. Consumers only pay 5 per cent HST (the federal part) on point-of-sale rebate items. There is no provincial HST on:

B.C. is also providing new housing rebates and rebates for eligible public service bodies like municipalities, schools, hospital authorities, universities, public colleges, registered charities and qualifying non-profit organizations.

Provincially Administered Credits

B.C. is providing a provincially administered credit for energy – e.g., electricity, natural gas, home heating fuel – purchased for residential use. The credit is equal to the 7 per cent provincial part of the HST on residential energy. For most residential customers, the credit is provided directly on their utility bills.

Other Measures

Quarterly Low Income Credit

To further reduce the impact of the HST on low-income individuals and families, the Government of B.C. introduced the B.C. HST Credit.

About 1.1 million British Columbians receive the B.C. HST credit every three months, including low-income seniors, students, individuals and families.

Reduced Personal Income Taxes

Effective January 1, 2010, the basic personal income tax exemption was increased for all British Columbians. This measure reduces provincial personal income taxes payable by up to about $80 for single taxpayers and by up to $160 for taxpayers claiming a spouse or equivalent to spouse.