These are taken from the Q & A section. HST does not apply to BC - - Could you imagine?
1. Does the new rate of tax (GST at 6% or HST at 14%) apply to real property purchased before July 1, 2006?

The new rate of tax (GST at 6% or HST at 14%) applies to a taxable purchase of real property where both ownership and possession are transferred on or after July 1, 2006. There is an exception to this general rule for the purchase of a new or substantially renovated residential complex. If either ownership or possession of the real property is transferred before July 1, 2006, GST at 7% or HST at 15% will apply.

6. Does the new rate of tax (GST at 6% or HST at 14%) apply to a new or substantially renovated residential complex purchased before May 2, 2006?

Where a written agreement of purchase and sale was entered into on or before May 2, 2006, and both ownership and possession are transferred on or after July 1, 2006, the GST at 7% or HST at 15% will apply. However, in these circumstances, a Transitional Rebate will be available to the purchaser to account for the rate reduction. If either ownership or possession is transferred before July 1, 2006, regardless of when the written agreement of purchase and sale was entered into, the GST at 7% or HST at 15% will apply and the purchaser will not be entitled to claim a Transitional Rebate.

7. Does the new rate of tax (GST at 6% or HST at 14%) apply to new or substantially renovated housing purchased after May 2, 2006?

Where an agreement of purchase and sale is entered into after May 2, 2006, the new rate of tax (GST at 6% or HST at 14%) will apply provided both ownership and possession are transferred on or after July 1, 2006. If either ownership or possession is transferred before July 1, 2006, the GST at 7% or HST at 15% will apply and the purchaser will not be entitled to claim a Transitional Rebate.

8. A purchaser entered into a written agreement of purchase and sale in November 2005, to purchase a new residential complex, but does not take possession and title of the complex until after July 1, 2006. What rate of tax is applicable?

The purchase of a new residential complex under a written agreement of purchase and sale entered into on or before May 2, 2006 is subject to the GST at 7% or HST at 15% if both ownership and possession of the complex are transferred on or after July 1, 2006. However, in these circumstances, the purchaser of the residential complex will be entitled to claim a Transitional Rebate to account for the rate reduction.

9. A purchaser of a new residential complex will receive title to the complex before July 1, 2006, but will not have possession until after July 1, 2006. What rate of GST/HST is applicable?

GST at 7% (or HST at 15%) applies since ownership of the residential complex will be transferred before July 1, 2006, even though possession will be transferred after July 1, 2006. In this case, the purchaser will not be entitled to claim a Transitional Rebate since ownership will be transferred before July 1, 2006.

10. A person will obtain possession, under an agreement of purchase and sale, of a new condominium unit before July 1, 2006, but the closing date of the sale will not occur until after July 1, 2006. What rate of GST/HST is applicable?

GST at 7% (or HST at 15%) applies since possession of the residential complex will be transferred before July 1, 2006, even though title will be transferred after July 1, 2006. In this case, the purchaser will not be entitled to claim a Transitional Rebate since possession will be transferred before July 1, 2006.

Transitional rebate
11. How does a person claim a Transitional Rebate?

To claim a Transitional Rebate, a person must complete an application form and file it with the CRA. If a new housing rebate is available in respect of the purchase, the individual who claimed the new housing rebate is the individual who claims the Transitional Rebate.

When the application form becomes available you will be able to obtain it on the CRA Web site or by calling 1-800-959-2221.