This Tax memo updates our February 19, 2012, Tax memo “Returning to B.C.’s Provincial Sales Tax: Transitional rules for new housing” to reflect November 2012 announcements.
Purchasers, vendors and builders could be affected significantly by the expanded information requirements.
On February 17, 2012, British Columbia announced, in HST Notice#12, transitional rules to mitigate potential double taxation on new housing, because of the return to the 7% Provincial Sales Tax (PST) on April 1, 2013. The transitional rules stem from the August 26, 2011 provincial referendum, which caused British Columbia to commit to revoke the Harmonized Sales Tax (HST) and reinstate its PST. They await legislative approval.
The key changes announced in November 2012 are described in more detail in our Tax memo. They expand the information requirements that a Canadian builder and foreign supplier must provide in:
These changes are effective December 1, 2012.
The following documents contain numerous complex disclosure requirements with which the vendor must comply: