GST (BC)

What is it?

The Goods and Services Tax (GST) applies to various real estate transactions in British Columbia. Here’s a detailed breakdown of when and how GST is applicable:

GST on New and Substantially Renovated Housing

  • Generally, the purchaser of the property is responsible for paying GST. It may be included in the sale price, but it is essential to verify this with the seller.
  • New Residential Properties: GST applies at a rate of 5% on new residential properties.
  • Substantially Renovated Housing: Typically applied when 90% or more of the interior has been removed or replaced. This includes the removal or replacement of most house components except for the foundation, external walls, interior supporting walls, floor, roof, and staircase.

○ If a new home is purchased and then torn down or substantially renovated, GST applies as the home is considered new for GST purposes. The owner must self-assess and remit GST to the CRA when construction is completed.

Exemptions

GST generally does not apply to:

  • Resale (Used) Residential Properties
    • Unless the property is a strata hotel, short-term rental, mixed-use property, or similar.
  • Principal Residences and Long-term Rentals
    • Used residential properties used either as a principal residence or longterm rental.
  • Owner-Occupied Homes
    • Bought primarily for personal use.
  • Used Residential Rental Properties (Temporary Accommodations)
    • Rented for periods over 30 days.
  • Sale of a Builder’s Personal Residence
  • Residential Properties Converted to Offices

Specific Scenarios

  • Short-term Accommodations: GST applies to properties used for short-term accommodations (less than 30 days), rental pools, or Airbnb/B&Bs.
  • New Manufactured Homes: GST applies to the full purchase price. For new manufactured buildings leased for commercial use, GST applies only to the lease.

GST New Housing Rebate

You may be eligible for a GST rebate if:

  • You buy a new home as a primary residence, priced up to $450,000. The rebate is 36% of the 5% GST paid on the first $350,000, phasing out between $350,000 and $450,000.
  • You buy a substantially renovated home.
  • You build your own home, provided the fair market value does not exceed $450,000.

New GST Rebate Announced for First-Time Home Buyers of New Homes

On May 27, 2025, the Federal Government announced a major update that could significantly benefit first-time home buyers of new homes and co-ops: a full GST rebate on homes priced under $1 million, and a partial rebate on homes between $1 million and $1.5 million.

This change, which will be introduced through amendments to the Excise Tax Act, means that first-time buyers will still pay GST at closing—but may be eligible to receive a rebate of up to $50,000.

The rebate is phased out on a sliding scale between $1 million and $1.5 million. For example, a $1.4 million home would still qualify for a 20% rebate—equal to $10,000.

This policy is designed to make it easier for first-time buyers to enter the market and is expected to increase activity in the pre-sale sector.

Read the full government press release here:
GST Relief for First-Time Home Buyers on New Homes

Presale Agreements

Under presale agreements:

  • The 5% GST is due when ownership and possession take place.
  • GST on the deposit amount isn’t payable when the deposit is made but on the full amount when the deal completes.
  • For partial payments made before completion, GST must be paid with each partial payment.

Vacant Land

GST applies to the sale of vacant land if:

  • Purchased from a developer.
  • Previously used for business purposes.
  • Subdivided into three or more lots.