Does GST apply to new real estate purchases in Fernie?

Does GST apply to new real estate purchases in Fernie?

The 5% federal Goods and Services Tax (GST) applies to new construction homes, presale developments, substantially renovated properties, and real estate used primarily for commercial short-term rentals (such as Airbnb) in Fernie, BC.

Resale residential properties used strictly as long-term housing or private secondary homes are generally GST-exempt. Buyers of newly built primary residences may qualify for federal GST housing rebates, while commercial STR buyers can often defer paying GST upfront by registering for a GST account prior to closing.

Goods and Services Tax (GST) generally applies to new real estate purchases in British Columbia, including new builds. However, resale residential properties are typically exempt from GST, while commercial properties and certain rental situations may have different tax implications.

When GST Applies vs. When Real Estate is GST-Exempt in Fernie Understanding whether a real estate transaction attracts 5% GST is essential when calculating your total cash required to close in British Columbia.

Resale Residential Properties (GST-Exempt) The vast majority of residential resale transactions in Fernie—including existing single-family homes in The Annex or established condos downtown—are exempt from GST, provided the property was used purely as a private residential home or long-term rental by the seller. No GST Burden: Buyers purchasing a standard resale home pay Property Transfer Tax (PTT) and legal fees, but zero GST. The Exception: If a resale seller previously operated the home as a commercial short-term rental business, GST may attach to the transaction unless structured properly.

New Construction, Presales, and Vacant Lots (5% GST Applies) When purchasing directly from a developer or builder—such as a new townhome in Montane, a master-planned lot in Alpine Trails, or a brand-new resort condo—the transaction is treated as a supply of new goods and attracts 5% GST on the purchase price. Rebate Opportunities: Buyers purchasing a newly built home as their primary residence may qualify for federal GST rebates. First-time buyers purchasing new primary residences under 1,000,000 can recover up to 100% of the GST paid (capped at 50,000). Contract Structure: Always verify whether the contract purchase price states "Plus GST" or "GST Included."

Commercial Short-Term Rental (Airbnb) Properties Because nightly vacation rentals are classified as commercial accommodation by the Canada Revenue Agency (CRA), buying a ski-in/ski-out condo at Fernie Alpine Resort intended for active short-term renting triggers GST rules—even if the building is a resale property. The Tax Deferral Strategy: Buyers intending to operate the unit as a commercial STR business can register for a CRA GST/HST account prior to completion. By electing to collect and remit GST on guest stays, buyers can defer paying the 5% GST upfront at closing through an offset mechanism filed by their lawyer or notary.