Harmonized Sales Tax
On July 1, 2010, the Provincial Sales Tax (PST) and the 8% component of the Hotel Room Tax were replaced with the Harmonized Sales Tax (HST). The HST is administered by the Canada Revenue Agency. For information on the application of the HST, please visit the Canada Revenue Agency website at www.cra-arc.gc.ca/harmonization
PST/8% Hotel Room Tax information may still be applicable if, under the transitional rules, PST/8% Hotel Room Tax applies. Information on new provincial programs and transitional rules related to the elimination of the Provincial Sales Tax (PST) and the provincial Hotel Room Tax is provided below
Click here for a list of the HST notices.
Please see our webpages for information on Provincial Sales Tax (PST) or Hotel Room Tax
BC Comprehensive Integrated Tax Coordination Agreement
The Comprehensive Integrated Tax Coordination Agreement (CITCA)
contains the terms and conditions under which BC will participate in the HST with the
federal government.
BC CITCA
CITCA Amendment (April 2010)
BC/CRA Human Resources Agreement
Canada–BC Reciprocal Tax Agreement
HST General Transitional Rules
General rules are provided here to help guide businesses and consumers in a smooth changeover to the Harmonized Sales Tax (HST) in July 2010. The HST Transition Rules specify technical details about paying the HST in the period around July 1, 2010.
HST General Transitional Rules
Provincial Sales Tax (PST) Transitional Rules
The PST transitional rules are provided to help businesses and consumers transition from the PST to the HST.
PST Transitional Rules
Hotel Room Tax Transitional Rules
The 8 per cent provincial hotel room tax was eliminated to coincide with the implementation of the Harmonized Sales Tax (HST) on July 1, 2010. Transitional rules are provided to help operators and consumers transition from the Hotel Room Tax to the HST.
Although the provincial Hotel Room Tax is eliminated, Municipal and Regional District Tax (MRDT) remains in place after July 1, 2010. Therefore, operators must continue to collect and remit the MRDT where it applies.
Hotel Room Tax Transitional Rules
Point-of-Sale Rebates for British Columbia HST
Details of the point-of-sale rebates of the 7% provincial component of the HST that apply to motor fuels, books, children’s clothing, children’s footwear, children’s car seats and children’s car booster seats, children’s diapers, and feminine hygiene products.
Point-of-Sale Rebates
Rebate Threshold and Transitional Rules For New Housing
The Province increased the threshold for the BC HST new-housing rebate from $400,000 to $525,000 to ensure that, on average, purchasers of new homes up to $525,000 pay no more tax due to harmonization than was currently embedded as PST.
The Province also has transitional rules for new housing. The provincial portion of the HST does not apply to sales of new homes where ownership or possession is transferred before July 1, 2010. In addition, sales of new homes under written agreements of purchase and sale entered into on or before November 18, 2009, are generally not subject to the provincial portion of the HST, even if both ownership and possession are transferred on or after July 1, 2010.
Rebate threshold and transitional rules for new housing
PST Transitional New Housing Rebate
For new homes that are subject to the provincial component of the HST after June 2010, a PST Transitional New Housing Rebate is available to provide relief in respect of the PST embedded in the price of the home.
PST Transitional New Housing Rebate
Temporary Recapture of Input Tax Credits Requirement
As announced on July 23, 2009, the Province has temporarily restricted input tax credits on certain items for large businesses (generally, those making taxable supplies, including zero-rated supplies, worth more than $10 million annually) and financial institutions. The restriction only applies to the provincial portion of the harmonized sales tax (HST).
On February 19, 2010, the Ministry of Finance issued Harmonized Sales Tax Notice #4, Temporary Recapture of Input Tax Credits Requirement. The notice has been amended to clarify how the input tax credit restriction applies to specified energy and specified telecommunications services.
The Notice is also amended to simplify the reconciliation process under the Estimation/Instalment Approach. Rather than reconciling with “Estimated RITCs”, a large business using the Estimation/Instalment Approach would reconcile its “Actual RITCs” for a fiscal year with the amount of input tax credits that it recaptured in its GST/HST returns for reporting periods during that fiscal year.
Temporary Recapture of Input Tax Credits Requirement
Residential Energy Credit and Rebate Program
Effective July 1, 2010, a provincially administered credit is provided for energy, including electricity, natural gas, heating fuel, heat, steam, kerosene, propane, firewood and pellets purchased for residential use. The credit is equal to the provincial component of the HST paid or payable on residential energy, excluding service and administration charges.
For most residential consumers, the credit is provided directly by energy suppliers on their utility bills, similar to the current PST exemption. Residential consumers who purchase energy for both residential and non–residential use (e.g. split use) that is not separately metered, or energy that is not delivered by the supplier to the residence, will not receive the credit on their utility bills but may apply to the provincial government for the credit.
Residential Energy Credit Program
Information for Suppliers of Taxable Property and Services to
the BC Government
Effective July 1, 2010, all B.C. government ministries, agencies, boards, commissions, and Crown corporations pay GST/HST on their purchases of taxable property and services. Rather than claiming an exemption from GST/HST as they previously did, eligible entities pay GST/HST and claim a 100 per cent rebate. This simplifies administration for suppliers because they are no longer required to have different rules or administer a special exemption system for government as they did under the GST. Information is provided here about supplies of taxable property and services to B.C. government entities and the application of the general transitional rules to B.C. government entities.
HST Notice for Suppliers of Taxable Property and Services to the BC Government
Information for GST/HST Registrants – Invoicing Requirements
GST/HST registrants need to let customers know if HST is being applied to their purchases. The disclosure and invoicing requirements for the HST for British Columbia follow the existing rules for the GST/HST.
HST Invoicing Requirements
Private Sales of Vehicles, Boats and Aircraft
Effective July 1, 2010, tax applies to the private sales of vehicles, boats, and aircraft (“designated property”) at a rate of 12 percent in British Columbia. The tax provides comparable treatment between private sales of vehicles, boats and aircraft, and sales from HST registered businesses.
Tax on Designated Property (Vehicles, Boats and Aircraft)
More information on the HST
Quick Contact:
- Canada Revenue Agency - Technical Questions: 1-800-959-5525
Public Inquiries
The HST is administered by the Canada Revenue Agency, not the Province of British Columbia. For enquiries related to the transition to HST, please visit CRA’s dedicated HST web pages.
Please direct telephone enquiries to CRA as follows:
Enquiries on the following topics should be referred to the CRA’s General Business enquiries telephone lines at 1-800-959-5525 (English) or
1-800-959-7775 (French):
- Application of the HST, including
- How the HST applies to goods and services,
- How the HST applies to items designated for point-of-sale rebates (motor fuels, children’s sized clothing and footwear, children’s car seats and car booster seats, children’s diapers and feminine hygiene products);
- the application of the HST under the general transitional rules;
- the application of the HST to interprovincial/interjurisdictional sales of goods and services; and
- HST registration and remittance/filing requirements.
Enquiries related to the following topics should be referred to the CRA’s technical GST/HST enquiries telephone line at 1-800-959-8287 (English) or 1-800-959-8296 (French):
- Eligibility for and the process for claiming HST rebates for public sector bodies (municipalities, universities, public colleges, school authorities, hospital authorities, registered charities and qualifying non-profit organizations);
- The temporary input tax credit restriction for large businesses; and
- Questions concerning real property, including the following;
- Transitional rules for residential real property;
- Eligibility for and the process for claiming HST new housing rebates and HST new rental housing rebates
Media Calls
Matt Gordon
Communications Director, Ministry of Finance
250 356-2821
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