As we all know we have long been awaiting for the HST to be removed after a long awaited battle with our former premier. Don’t be a fool and get to know your exemptions.
PST will be 7 percent and GST will be at 5%
Certain goods and services are exempt from PST
Similar to the Social Service Tax Act, the Provincial Sales Tax Act does not impose tax on things such as:
- Real property (residential housing or commercial real estate);
- Admissions and memberships;
- Professional services (other than legal services);
- Transportation fares (e.g., bus, train, ferry, airline)
In addition, all permanent exemptions from the PST will be re-implemented with the new PST, including:
- food for human consumption (e.g., basic groceries and prepared food such as restaurant meals);
- books, newspapers and magazines;
- children’s clothing;
- all permanent exemptions for business.
Unlike the Social Service Tax Act, the Provincial Sales Tax Act legislation only includes exemptions fundamental to the scheme of the act. The remainder of the exemptions will be provided by regulation. Note: in cases where the legislation does not impose tax, a specific exemption is not required to be provided. For example, as the PST is not imposed on purchases of real property (i.e., housing) or on admissions or memberships, no specific exemptions are required.
For those looking to sell your bc condo or house, the real estate commissions will only charge a 5% GST instead of a combined 12% with HST. Real estate services follows the category of professional services under the rules.