Published
Changes to the QST
As of January 1, 2013, the QST will be calculated directly on the selling price not including GST. To maintain the same level of QST currently collected on each sale, the QST rate will be raised from 9.5% to 9.975%.
Impact on the QST new housing rebate
As a result of this change in how the QST is calculated, the QST rebate for owners of a new home and land purchased from the same builder will be affected in two ways:
- The GST rebate will no longer be taken into account in calculating the QST rebate. The resulting reduction in the overall rebate may be as much as $598.50 in the case of a new home purchased for $350,000.
- The maximum amount of the QST rebate will increase from $9,804 to $9,975.
Thus the QST rebate for the purchase of a new home and land under a written agreement (a purchase offer) entered into after December 31, 2012, will be calculated as follows, depending on the purchase price:
- $200,000 or less: QST paid × 50%
- more than $200,000: $9,975 × ([$300,000 - purchase price] ÷ $100,000)
The following example of a home purchased for $200,000 illustrates the old and the new way of calculating the GST and QST rebates.
| Before January 1, 2013 | On or after January 1, 2013 | ||
|---|---|---|---|
| GST paid | $10,000 | GST paid | $10,000 |
| Percentage of the GST rebate | × 36% | Percentage of the GST rebate | × 36% |
| GST rebate (maximum $6,300) | $3,600 | GST rebate (maximum $6,300) | $3,600 |
| Before January 1, 2013 | On or after January 1, 2013 | ||
|---|---|---|---|
| QST paid | $19,950 | QST paid | $19,950 |
| QST rebate granted on the amount of the GST rebate ($3,600 x 9.5%) | - $342 | QST rebate granted on the amount of the GST rebate | - |
| Net QST | $19,608 | Net QST | $19,950 |
| Percentage of the QST rebate | × 50% | Percentage of the QST rebate | × 50% |
| QST rebate (maximum: $9,804) | $9,804 | QST rebate (maximum: $9,975) | $9,975 |
| QST rebate granted on the amount of the GST rebate | + $342 | QST rebate granted on the amount of the GST rebate | - |
| QST rebate | $10,146 | QST rebate | $9,975 |
New forms
Forms FP-2190.A-V, GST-QST New Housing Rebate Application: Owner of a New Home and Land Purchased from the Same Builder, and FP-2190.C-V, GST-QST New Housing Rebate Application: Rebate Granted by a Builder, will be modified to reflect the new way of calculating the rebate. For all agreements entered into after December 31, 2012, the 2013-01 version of these forms must be used.