HST IN TIMMINS REAL ESTATE TRANSACTIONS

As you may be aware, Harmonized Sales Tax has replaced the federal Goods and Services Tax in Ontario. The tax itself has complex implications for real estate transactions entered into after July 1, 2011. Under the Act, HST must be paid on all purchases made in Ontario, unless otherwise exempted. In the case of real estate transactions, these exemptions include, but are not limited to: 

  • “Used Housing” – which, generally speaking, includes apartment buildings and residential condominiums;
  • Homes that have been built by owner-occupiers; 
  • Recreational properties (sold outside the course of normal business); and
  • The sale of certain vacant lands (outside the course of normal business).

 
Full rates may be payable on new homes and new condominiums, however, certain rebates are available, which tend to vary according to price. Where transactions involve commercial and/or industrial properties, HST is generally payable. Typically, it will be the vendor’s obligation to collect it (unless the purchaser is an HST registrant).