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Question about HST

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gentle_lover

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Mar 5, 2005
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I know if you buy new property under 400k you get a rebate of 75%. My question is do you have to pay the full 13% tax first and then get a rebate, or will it be adjusted by your lawyer upon closing so you only pay 2%?
Well, I know that 2% of PST and 5%GST are already embedded in the purchase price on new condo these days. So, will the 2% PST you pay on closing on top of the embedded 2% PST in the purchase price be refunded back to you?
 
I wonder if I should change the topic to "Blonde girl with big tits" just to get helps on my question :rolleyes:
 
http://www.rev.gov.on.ca/english/notices/str/02.html

Enhanced New Housing Rebate

The province is proposing an enhancement to the new housing rebate that was announced in the 2009 Ontario Budget[1].

The new housing rebate would be enhanced so that new homes purchased as primary residences across all price ranges would qualify for a rebate of up to $24,000, while continuing to ensure that, on average, new homes priced up to $400,000 would not be subject to additional tax compared to the retail sales tax (RST) currently embedded in the price of new homes.

The effect of the enhanced rebate would be to apply the provincial portion of the single sales tax at a rate of two per cent on the first $400,000 of the purchase price of a new home and at a rate of eight per cent on the portion above $400,000. The rebate would be calculated as 75 per cent of the provincial portion of the single sales tax payable on the purchase of a new home, up to a maximum rebate of $24,000.

This provincial rebate for new housing would be provided for the same types of new residential properties for which a Goods and Services Tax (GST) new housing rebate is available. Qualifying housing would include substantially renovated housing, co-operative housing, owner-built housing, housing on leased land, mobile homes and modular homes for use as primary places of residence.

Ontario's new housing rebate would be federally administered in a manner similar to the GST rebate for new housing. Individuals would be able to file an application for the rebate directly with the Canada Revenue Agency (CRA) if the builder does not pay or credit the rebate to the purchaser at the time of purchase.
 
calloway said:
http://www.rev.gov.on.ca/english/notices/str/02.html

Enhanced New Housing Rebate

The province is proposing an enhancement to the new housing rebate that was announced in the 2009 Ontario Budget[1].

The new housing rebate would be enhanced so that new homes purchased as primary residences across all price ranges would qualify for a rebate of up to $24,000, while continuing to ensure that, on average, new homes priced up to $400,000 would not be subject to additional tax compared to the retail sales tax (RST) currently embedded in the price of new homes.

The effect of the enhanced rebate would be to apply the provincial portion of the single sales tax at a rate of two per cent on the first $400,000 of the purchase price of a new home and at a rate of eight per cent on the portion above $400,000. The rebate would be calculated as 75 per cent of the provincial portion of the single sales tax payable on the purchase of a new home, up to a maximum rebate of $24,000.

This provincial rebate for new housing would be provided for the same types of new residential properties for which a Goods and Services Tax (GST) new housing rebate is available. Qualifying housing would include substantially renovated housing, co-operative housing, owner-built housing, housing on leased land, mobile homes and modular homes for use as primary places of residence.

Ontario's new housing rebate would be federally administered in a manner similar to the GST rebate for new housing. Individuals would be able to file an application for the rebate directly with the Canada Revenue Agency (CRA) if the builder does not pay or credit the rebate to the purchaser at the time of purchase.
Click to expand...
thanks for the reply calloway. I read that already. I guess not many people know the asnwer.

I guess what I want to know is whether you have to pay the full 13% first then get a refund, or is this something that your lawyer have to file on closing so you don't have to pay the 6% extra at the first place?
 
gentle_lover said:
thanks for the reply calloway. I read that already. I guess not many people know the asnwer.

I guess what I want to know is whether you have to pay the full 13% first then get a refund, or is this something that your lawyer have to file on closing so you don't have to pay the 6% extra at the first place?
Click to expand...


You may have read, but did you comprehend?... :)


Individuals would be able to file an application for the rebate directly with the Canada Revenue Agency (CRA) if the builder does not pay or credit the rebate to the purchaser at the time of purchase.
 
Moraff said:
You may have read, but did you comprehend?... :)


Individuals would be able to file an application for the rebate directly with the Canada Revenue Agency (CRA) if the builder does not pay or credit the rebate to the purchaser at the time of purchase.
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So does it mean that if the builder doesn't credit me, I have to pay the full HST first then file for a rebate?
 
Hotdog said:
Yes, but I think most builders would credit you.
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How would they credit you if you have never paid the 6% in the fist place? I'm sorry but I'm confused. If you buy property before July 2010, obviously you don't pay the 6% extra. So, my question is, since you never paid the 6% in the first place, how would the builder give you credit? I don't think the builder will deduct the purchase price to credit you. Do you understand what I am confused about?
 
gentle_lover said:
How would they credit you if you have never paid the 6% in the fist place? I'm sorry but I'm confused. If you buy property before July 2010, obviously you don't pay the 6% extra. So, my question is, since you never paid the 6% in the first place, how would the builder give you credit? I don't think the builder will deduct the purchase price to credit you. Do you understand what I am confused about?
Click to expand...

Not really, since it pretty standard practice for builders to deduct GST from sale prices for first time buyers.
 
gentle_lover said:
How would they credit you if you have never paid the 6% in the fist place? I'm sorry but I'm confused. If you buy property before July 2010, obviously you don't pay the 6% extra. So, my question is, since you never paid the 6% in the first place, how would the builder give you credit? I don't think the builder will deduct the purchase price to credit you. Do you understand what I am confused about?
Click to expand...

If you never paid it then obviously you wouldn't qualify for a rebate. This amendment is to take effect when (if) the HST goes into effect as far as I know.

The builder would "give you credit" by just not charging you the 6% in the first place.

No I don't understand what you are confused about... sorry.
 
Moraff said:
If you never paid it then obviously you wouldn't qualify for a rebate. This amendment is to take effect when (if) the HST goes into effect as far as I know.

The builder would "give you credit" by just not charging you the 6% in the first place.

No I don't understand what you are confused about... sorry.
Click to expand...
I think you just answer my question, Moraff. That is what I was confused about. How can the builder give you a credit if you never paid it in the first place. So if what you said is true, then it make sense now. The builder simply not charging me in the first place for the 6% extra. So, I guess they would have to file pay the HST for me then file it for 6% rebate?

Is this information is reliable, Moraff?
 
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