How will the sales tax increase affect some real estate costs?
On March 30, 2010, the Minister of Finance announced a sales tax increase that takes effect on January 1, 2012. The Québec sales tax ("QST") will increase from 8.5% to 9.5% on taxable supplies.
Some people have asked how this will affect various costs associated with real estate. Some, but not all, of the costs that will be affected by this rate change include:
- purchase price of a property (in some situations)
- real estate commissions
- legal fees
- advertising and marketing of real estate
- moving costs
- costs of staging
- costs of cancelling utilities and services at the prior property
- costs of setting up utilitities and services at the new property
- renovations
- maintenance
This article is intended to inform readers of developments as of the date of publication on December 4, 2011 and is neither a definitive analysis of the law, proposed law, administrative positions, interpretations, court cases etc. nor a substitute for professional advice. Readers should discuss with appropriate professional tax advisors, financial advisors, legal counsel and/or other advisors regarding how the information may apply to their specific situations. This post will NOT be updated for changes in legislation, court cases, interpretations or other matters after publication. E.&.O.E.
How will the sales tax increase affect some real estate costs?
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