Transitional Rules

On April 1, 2013, B.C. returned to a Provincial Sales Tax (PST) system.

General PST Transitional Rules

The PST transitional rules describe how and when PST applies to transactions that straddle April 1, 2013. The transitional rules should be read in conjunction with the federal transitional rules for the elimination of the HST in B.C.

New Housing Transitional Rules

The housing transitional rules help ensure when people buy a newly built home, whether built entirely under the HST, entirely under the PST, or under both the HST and PST, they will all pay about the same amount of tax.

Purchasers paid 12% HST on the purchase of new homes built in B.C. before April 1, 2013.

As of April 1, 2013, purchasers only pay 5% GST on new home construction and builders pay 7% PST on their building materials.

Where new home construction begins before April 1, 2013, but ownership and possession occur after, purchasers will pay a temporary, transitional tax of 2% on the full house price instead of the 7% provincial portion of the HST.

Builders will also receive temporary housing transitional rebates to offset PST on materials to help prevent double-taxation on homebuyers.

The temporary housing transitional rules will be in place until March 31, 2015.

It is important to note that the HST did not apply to resale housing.

 Transitional New Housing Rebate

Houses that were constructed or substantially renovated, in full or in part, prior to July 2010 are eligible for the Transitional New Housing Rebate. The rebate is offered because the building materials used in the construction of the homes were subject to PST until June 2010.

Builders can request the rebate to lower the harmonized sales tax (HST) of building materials purchased after June 2010. To apply for the Transitional New Housing Rebate, you need to:

  1. Submit an Application for a Letter of Good Standing (FIN 305) by:
  2. Fill out an application for the Transitional New Housing Rebate
  3. Submit the application and letter of good standing to the Canada Revenue Agency (CRA) 

Subsequent PST Transitional New Housing Rebate applications submitted to the CRA by the builder would be processed based on the Letter of Good Standing attached to the first application, so long as the Letter of Good Standing remains valid. A Letter of Good Standing is valid for one year.

The PST Transitional New Housing Rebate is administered by the CRA. More information on the PST Transitional New Housing Rebate is available on the CRA website at

Useful Contacts

Our hours of operation are Monday through Friday, 8:30am to 4:30pm.

Phone: 1-877-388-4440
(toll free within Canada)


For questions about the housing rebates or the B.C. temporary transition tax, contact CRA:

Phone: 1-800-959-8287 (English)
1-800-959-8296 (French)

PST Outreach

Learn about the different PST outreach initiatives and how you can participate.

PST Prior to July 1, 2010

Find information about PST appeals

Related links