There has been some concern about the Harmonized Sales Tax (HST) and it’s implications on housing prices. Starting July 1 the HST will apply to most of the goods and services that have been previously subject to the GST. For a prefabricated home package, the HST will now apply to the total cost for Canadian customers. In the past theGST (5%) has applied to all provinces, and the PST (7%) has applied to all sales withinBC. There has been a PST exemption for materials used to conserve energy, including insulation and Energy Star rated windows and doors with glass. This exemption will no longer exist with the HST.
To sum up, the HST will only affect the cost of a Mandala Home Package for BC customers, and this change will be an additional 7% on insulation and Energy Star rated windows and doors with glass (approximately $700 on a $100,000 home package). Customers in Alberta will continue to be charged 5% — the GST portion of the HST, customers in other provinces will pay the sales tax applicable in their province, and ourUS and international customers will not pay Canadian taxes. For more information visit https://www2.gov.bc.ca/gov/content/taxes/property-taxes/property-transfer-tax/exemptions/newly-built-home-exemption or https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-rebates/new-housing-rebate.html.