Planning for PST – Construction Projects

If you’re planning on hiring a contractor to perform upgrades to your Real Property (Building or Land) there may be a benefit to purchasing materials for the project yourself.

Various factors will apply, but as a general rule the following holds true:

Under the proposed transitional rules, when a contractor purchases materials prior to April 1st, 2013, then installs those materials after April 1st, 2013 in a Real Property contract, they are required to self assess PST, and will likely pass this amount on to you with a mark up.

If you purchase materials yourself prior to April 1st, 2013, however, there is no requirement to Self Assess PST. You can claim the HST and keep the materials on hand for whenever you need them.