Effective April 1, 2017, services to real property are subject to PST. Find out more.
Rules are in place to transition between the old and new application of PST. Find out more in Information Notices:
To assist land developers, builders and contractors in determining if a project is subject to PST under the old or new legislation, the Ministry of Finance will maintain a Project Registry.
For approved projects, a letter is issued by the Ministry of Finance to the land developer, builder or general contractor advising that the project, or a certain phase of the project, is subject to the application of PST prior to April 1, 2017. A copy of the letter can then be provided to contractors and subcontractors as documentation to support the application of PST under the old rules.
Land developers and contractors will administer their work under the rules in place for the application of PST prior to April 1, 2017, for projects that meet one or more of the following conditions:
- There is an executed Service Agreement in place between the land developer and the municipality prior to April 1, 2017.
- The work was solicited and responded to (bid) prior to April 1, 2017, through a formal submission process and a written letter of award has been received within 60 calendar days of April 1, 2017. Sufficient supporting documentation is expected to include:
a. Project tender documents and an engineering estimate on costs to complete work in the Phase;
b. Executed general sub trade agreements, purchase orders, or sub trade award letters; and
c. A proposed plan of the subdivision with a unit count of the lots and acreage of parcel.
Residential and Commercial Construction
Developers, builders and contractors constructing residential or commercial premises for resale purposes will administer their work under the rules in place for the application of PST prior to April 1, 2017, for contracts that meet one or more of the following conditions:
- There is an executed customer contract in place for the sale of the premise, meaning a written agreement is in place prior to April 1, 2017, or an offer available for acceptance within a 30 day period is in place prior to April 1, 2017, with pricing determined.
The residential or commercial building is under construction before April 1, 2017, with "under construction" defined as the commencement of the foundation or permanent structure of the building. Sufficient supporting documentation is expected to include sub trade and supplier invoices for work completed on the building.
Based on dollar value, a majority of written sub trade agreements have been entered into before April 1, 2017, as evidenced by:
- Nominal change orders, cumulatively within 10 per cent of the contract value as of March 31, 2017, for residential or commercial builds, or 25 per cent of the contract value as of March 31, 2017, for commercial building alterations, will be subject to tax based on the rules in place for the application of PST prior to April 1, 2017.
- The first change order that causes the total to exceed 10 per cent or 25 per cent, as applicable, plus any subsequent change orders are subject to tax based on the application of PST effective on April 1, 2017.
- Where the agreement includes conditions yet to be removed that impact the pricing of the original agreement, those conditions are to be treated as change orders.
a. Executed general sub trade agreements, purchase orders, or sub trade award letters;
b. Project tender documents; and
c. Site plan with a unit count of the project.
Note: For multi-unit projects, each building must qualify. The entire multi-unit project does not qualify as a whole.
How to Apply
Apply for the Project Registry by submitting a completed Project Registry Application Form along with supporting documentation to firstname.lastname@example.org.