Canada Tax Agency Clarifies GST/HST Treatment of Real Property Assignment Sales

The Canadian Revenue Agency May 26 posted online a notice clarifying GST/HST treatment of an assignment of housing property rights under the amendments proposed by the 2022 Budget, effective May 6. The clarification includes: 1) the GST/HST taxation of assignment sales of newly constructed or substantially renovated single unit residential complexes or residential condominium units; 2) the GST/HST rates for rights assignments between 5 percent and 15 percent, depending on the province where the property is located; 3) an overview of assignment sales and property subject to taxes; 4) the formula for calculating the tax amount; 5) the taxation of ...