PST Transition Rules

HST to GST: Transition Rules for Real Property 

Last update: April 10, 2014

On April 1, 2013, the Harmonized Sales Tax (HST) was replaced by the federal Goods and Services Tax (GST) and the BC Provincial Sales Tax (PST).

The following questions and answers are intended to provide clarity regarding sales of new housing at a high level. For advice about specific transactions and situations, BCREA suggests individuals seek legal and/or accounting advice, as appropriate.

For more information, see:

As details are finalized, this page will be updated with the latest information. For a printable version of the information on this page, click here.


To view the entire list of frequently asked questions below, click Expand All. 

Frequently Asked Questions - PST Transition Rules

  1. Why are transition rules necessary?

  2. When does HST apply, and when does GST apply?

  3. Generally, when does the tax become payable?

  4. Generally, when does the tax become payable when the transaction involves a strata unit?

  5. Who will be responsible for paying the GST?

  6. Does the PST apply to real property?

  7. How does the temporary transition tax work?

  8. How can I determine the percentage of completion of a new home?

  9. Will the transition tax apply more than once to a particular property?

  10. Who pays the temporary transition tax?

  11. How does the temporary transition tax work when the transaction involves a strata unit?

  12. Are there any rebates for sellers related to the temporary transition tax?

  13. How will the transition affect the way I prepare or counter a standard form Contract of Purchase and Sale?

  14. What methods can be used to provide the buyer with the addendum?

  15. Is there a penalty for builders who don’t make the required disclosures during the transition period?

  16. Does the PST apply to real estate commissions?

  17. When does commission become payable?

  18. For pre-sales, where 50% of the commission (and 50% of the applicable tax on commission) has already been paid by the developer to the REALTOR®, but the sale won’t complete until April 1, 2013 or later, what tax rate applies on the remaining commission?

  19. Are there any special rules for commercial property?