As part of the shift from the HST back to the GST program the government has created a BC transition tax.
BC Transition Tax
If you are planning on buying a new home over the next two years, then you need to know about the 2% BC Transition Tax.
The new tax came into effect on April 1, 2013 and applies to the sale of new residential homes that are 10% or more complete as of April 1, 2013. The 2% BC Transition Tax will end on March 31, 2015.
With the end of the HST and the return to the PST/GST system, the BC government chose to introduce the 2% BC Transition Tax as a way “to ensure the equitable application of tax for purchasers of new residential homes currently under the HST system”. The government also wishes to replace some of the revenue lost through the return to the PST.
BC’s portion of the HST will no longer apply to newly built homes where construction begins on or after April 1, 2013. Builders will once again pay 7% PST on their building materials (construction inputs). The provincial government asserts that on average, about 2% of the home’s final price is embedded PST that builders pay on their building materials.
For full details visit http://www.rebgv.org/2-bc-transition-tax-new-homes-coming-april-1-2013