Goods & Services Tax

GST and Real Estate

• 5% on newly constructed homes

General Information about GST

Most goods and services sold or provided in Canada are taxable at the rate of 5% (GST) - as of January 2008. Certain items, such as sales of basic groceries and prescription drugs are taxable at a rate of 0%. These are referred to as zero-rated goods and services. A limited number of goods and services are exempt from the GST. The GST applies to most transactions from manufacturing to marketing and sales. GST is chargeable on newly constructed homes.