Vacant Land

Whether or not you pay the HST depends on who you purchase the land from.

• If you purchase a lot from an individual (not a developer) who has never used it for business purposes, you will be exempt from paying the HST.
• If you purchase a lot from an individual who has subdivided it into more than two lots (three or more lots), or from a developer, you will pay the 5% GST if the possession date is before July 2010, even if the title transfers after July 1, 2010. If possession is transferred after July 1, 2010, you will pay the 12% HST.

If you plan to build a home, if the majority (90%) is completed after July 1, 2010, you will pay the HST. You may be able to recover a portion of the HST through the New Housing Rebate.

If you are selling personal use vacant land and the sale is now exempt from the GST, the sale will be exempt from the HST after June 30, 2010.

These are EXAMPLES. Buyers/Sellers/REALTORS® are strongly advised to consult on the rules for land sales with the Canada Revenue Agency at  <휴˜>             1.800.959.8287         1.800.959.8287.