Tax on real estate commissions to drop on April 1, 2013

By
Industry Observer

Tax on real estate commissions to drop on April 1, 2013

There is great news for home sellers in British Columbia.  Effective April 1, 2013, the 12% harmonized sales tax ("HST") is being eliminated.  It is being replaced by the 5% goods and services tax ("GST") and the 7% provincial sales tax ("PST").

5% GST will be charged on real estate commissions effective April 1, 2013.  PST is not charged on real estate commissions.  Between July 1, 2010 and March 31, 2013, 12% HST was charged on real estate commissions.

The tax savings can be significant.

Home buyers who are required to pay real estate commissions in accordance with their contract will also benefit.

In situations where a real estate transaction straddles April 1, 2013, transition rules may apply to the conversion from the HST regime to the GST/PST regime.

The information in this blog post is general in nature and may not apply to your specific situation.  Consult your professional tax advisor to find out how the changes in sales tax laws affect you.

Tax on real estate commissions to drop on April 1, 2013

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Real Estate Industry
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British Columbia
Tags:
british columbia
sales tax
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Rainmaker
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Ed & Tracy Oliva
West USA Realty - Arizona - Fountain Hills, AZ
The Oliva Team Arizona Agents

Marc, this is some good news for all in your market!!  keep up the good work and good luck in 2013 with your business.  E

Mar 11, 2013 09:43 PM #1
Rainmaker
1,268,136
Al & Peggy Cunningham, Brokers
RE/MAX West Realty Inc., Brokerage - Brampton, ON
Our Family Wants To Help Your Family!

I wondered how this flew under our radar Marc and then see it is in B.C.  They luckily are adopting what we threw out here in Ontario!

Mar 13, 2013 03:10 AM #2
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