Best answer: Is HST payable on real estate commission?

If you are selling your home and using a real estate agent, you will be aware that you will have to pay commission on the sale price. Many sellers, however, are not aware that they also have to pay HST (13%) on the amount of the commission.

Is real estate commission subject to HST?

A. Yes, HST is payable on certain services associated with the purchase of a home, such as legal fees, real estate commissions, moving fees, appraisals, and home renovation services.

Is there HST on real estate commission in Ontario?

Yes, the seller has the pay HST in Ontario on the real estate agent commission.

Who pays HST buyer or seller?

When applicable, HST will be payable by the Assignor (buyer #1 from the builder) on the portion of the assignment sale price related to the return of deposits (paid to the builder by the assignor/seller) PLUS the gross profit (the difference between the builder price and the assignment price).

What HST Ontario?

The Harmonized Sales Tax (HST) is 13% in Ontario. … Ontario provides relief on the 8% provincial portion of the HST on specific items through a point of sale rebate. See below.

IT IS INTERESTING:  Do I need to disclose a burglary when selling a house?

Is there sales tax on HST?

The harmonized sales tax (HST) is a combination of federal and provincial taxes on goods and services in five Canadian provinces. … The concept behind the HST was to streamline the recording and collection of federal and provincial sales taxes by combining them into a single, uniform levy across Canada.

How does HST work when buying a house?

The amount of HST is 13% of the purchase price. Many builders include the HST in the purchase price, while others charge the HST in addition to the purchase price. If you are buying a newly built home, you should make sure you know what the total purchase price is including HST.

Who pays the HST on commercial real estate?

36. Sometimes lease inducements are used for leases of taxable commercial property. The GST/HST consequences vary according to the circumstances of the lease inducement. Examples of the most commonly used lease inducements-rent-free period, reduction of rent, cash payment and leasehold improvements-are discussed below.

How do I avoid paying HST on a new home?

When buyers of a newly built or substantially renovated home use the property as a primary residence for themselves or eligible family members, they can apply for a New Housing Rebate on the HST/GST they paid. If they are not going to be living there, the rebate doesn’t apply.

What percent is HST in Ontario?

13% (HST) in Ontario.

When should HST be charged?

You start charging the GST/HST at the beginning of the month after you are no longer a small supplier. You have to register within 29 days after you make a sale other than as a small supplier. You do not exceed the $50,000 threshold amount Footnote4 in four consecutive calendar quarters.

IT IS INTERESTING:  Question: What do zones mean in real estate?

Who charges HST in Canada?

If your business is in or does business in one of the five provinces that charge HST, you are responsible for charging, collecting, and remitting HST to the CRA. There are certain exceptions, such as items or services that are GST/HST exempt or zero-rated, or your business has small-supplier status.