Real Estate in Invermere

The BC Goods and Services Tax (GST) for real estate in Invermere is 5 percent Federal Tax. This is payable upon successful sale completion of all brand new real estate properties in Invermere, BC. Therefore, GST is only payable on the newly developed Invermere real estate properties.

These include an Invermere condominium development on pre-sale sold by any developer or the builder and owner of that condominium development. The property needs to be detached concerning who is going to be the payer of GST. It also implies that the purchased contract assignment from another entity is also subject to Invermere real estate BC GST.

When is the GST due on a property?

The Goods and Services Tax is due right at the completion time according to the sale/purchase contract. Your lawyer or notary will calculate it when the statement of adjustments is being prepared for completion.

General GST rebate for real estate in Invermere

There is a general rebate available for those properties that are less than $350,000 in price and if the buyer is looking to live permanently. The general rebate here is 36% of the 5% GST value. This is the highest amount of rebate that can be issued for any new property.

The purchases that fall between $350,000 and $450,000 also have a partial rebate, but that is significantly low. However, the properties over $450,000 do not receive any rebates, even for new homes.

Do I need to pay GST on my real estate in Invermere?

This is a dubious question because it solely depends upon your current purchasing status and, of course, the type of property you are buying.

• If you are looking to purchase a used residential property in Invermere, GST will not apply here.
• Suppose the price of a new home is under $350,000. Then you will only have to pay 36% of the 5% GST. This scenario is also applicable if you are looking to buy a pre-sale property.
• In the case of a contract assignment, the property is considered a new home, and 36% of 5% GST will be applicable if its value is under $350,000 unless agreed otherwise.
• In the case of rentals, the GST rental rebates are also available, but the purchaser will have to pay a full 5% of GST.
• As a buyer in Invermere, you will have to pay GST for your transaction services. As a seller, you will pay GST on the commissions of your listing agent.
• If the purchase price already includes the GST. As a result, you won’t have to pay for it again.

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Is the assignment of contracts subject to paying GST?

Yes. Assignment of contracts is still considered a new home, so you will be paying the GST upon completion unless otherwise agreed to between the assignee and the assignor.

Are there any rental rebates?

If a Purchaser is planning to rent out the new home, they may be eligible for a GST New Residential Rental Rebate. Like the GST New Housing Rebate, the full GST NRR Rebate is only available on new homes
priced up to $350,000. A partial GST NRR Rebate is available for homes priced between $350,000 and $450,000. More information on the GST New Housing rebate can be found at this link. 

To be eligible for the G.S.T. NRR Rebate, the Purchaser must meet certain conditions, which include:

1. The Purchaser must not be entitled to claim input tax credits in respect of any part of the tax payable on the rental unit’s acquisition.
2. The rental unit must be a “qualifying residential unit,” Which means the person applying for the rebate must be the owner of the unit, and the unit must be a self-contained residence as defined in the Excise Tax Act;
3. The unit must be held by the owner to make exempt supplies (for example, a residential tenancy);
4. The unit must be used as a primary place of residence by the tenants and must be so used for at least one year, and the Purchaser will have to provide a copy of the tenancy agreement showing a term of at least one year.

Please note that the Developer cannot credit the Purchaser on completion with the GST NRR Rebate. This means the Purchaser will have to pay the full 5% G.S.T. on completion. Then claim the G.S.T. NRR Rebate afterward directly from Canada Revenue Agency.

Are you a buyer or a seller of Invermere real estate?

So far, we’ve discussed when buyers have to pay GST regarding the home’s purchase price. GST will charge on other services throughout the transaction, like your lawyer or notary. As a seller, you are responsible for paying the GST on commission for your listing real estate agent as well as the buyer’s agent, unless otherwise agreed to in your listing contract.

Buyers typically do not pay real estate commissions. However, if you are a buyer and agree to pay your agent a commission, please keep in mind you will also have to pay GST on that service.

Looking for a Tax Calculator?

For an easy calculator of the property transfer taxes, GST, and foreign buyer taxes, you can also use the following tax app. It’ll do all the calculations for you: BCREA – Tax Calculator.

Contact DK Rice if you have questions about Invermere real estate questions.