Transition Rules:
1. All services performed, due and payable prior to July 1st, 2010-only 5% GST would apply. (Example: Listing taken, offer accepted and transaction closed before to July 1st, 2010)
2. All services performed after June 30th,2010-only 13% HST would apply. (example:Listing taken, offer accepted and transaction closed after June 30th,2010)
3. 90/10 Rule-Services started prior to July 1,2010 and completed after June 30th,2010 - might be exempt from HST based on a transaction rule that states that if 90% or more of the work is completed prior to July 1st, 2010 then only 5% would apply. Conversely, if 10% or less of the services performed before July 1St, 2010, then only 13% will apply. ( A form must be completed for satisfaction of this 90/10 rule)
4. Blended GST/HST Rule - Services started prior to July 1st, 2010 and completed aftter June 30th,2010- that does not satisfy the 90/10 rule transitional rule for HST exemption will be subject to a combination of GST and HST in proportion to the work performed before and after July1st,2010.
BUYING A HOME & HST
There is no HST on a resale home or a preowned home
There is HST built into the price of NEW CONSTRUCTION
Keep watch for more informative real estate news!
