RealtiBuilderSales is HST Ready
RealtiBuilderSales has been updated to incorporate HST and HST Rebates for both condominium and freehold sales.
Applicability of HST
RealtiBuilderSales automatically determines applicability of HST based on the Contract Date and Final Closing Date or Interim Occupancy Date.
New Home Rebate for Federal and Provincial Components of the HST
For purchasers who meet conditions for claiming a new housing rebate, the new HST regime allows for rebates to both the federal and provincial components of the HST. The purchaser would be entitled to claim an Ontario new housing rebate of 75% of the provincial part of the HST, subject to a maximum amount of $24,000. The rebate of the federal part of the HST follows similar rules to the previous GST new housing rebate with the threshold for any federal rebate being a purchase price less than $450,000.
RealtiBuilderSales automatically calculates rebate amounts for new home sales. For a more detailed explanation of the calculations used, please contact our technical support team.
Retail Sales Tax (RST) Transitional New Housing Rebates for freehold and common element condominiums
To compensate for the amount of RST embedded in New Home construction that straddles July 1, 2010, there exists a transitional RST rebate. While RealtiBuilderSales will allow you to calculate this rebate, there exists no programming to determine eligibility for the transitional rebate. It will be up to users to determine whether to include this rebate in the transaction.
Reviewing custom documents
Please remember to check all your custom documentation for GST or HST wording. If you need help modifying these custom documents, contact our support team as soon as possible as we anticipate a large volume calls during this implementation. (Charges may apply for custom programming.)
An important note on your Statement of Adjustments
We have provided the ability to add a variable (GST/HST) field to your Statement of Adjustments in the Adjustments tabs of your Edit Project screens. This variable field automatically inserts either the word GST or HST into your document based on the transaction's contract date, closing date or occupancy date. For more on adding variable fields, please contact our support hotline.
HST applicability on LawyerDoneDeal transaction fees, custom programming and letterhead work
For all transactions with a closing date on or after July 1, taxes will show on Account screens and documents as 13% HST, replacing the previous 5% GST and 8% PST. The Account Statement that you print for your own accounts will show HST for all deals with a closing date on or after July 1, 2010.
All custom programming or letterhead work completed on or after July 1, 2010 will be subject to HST.
HST on Legal Fees
For all transactions with a closing date on or after July 1, HST will be calculated on legal fees and other items on the Statement of Account.