If a builder constructs and sells a new home in Ontario, what amount of HST are they typically required to collect and remit?

Question: If a builder constructs and sells a new home in Ontario, what amount of HST are they typically required to collect and remit?

Answer options: ✅ The full 13% HST on the purchase price, less any applicable new housing rebates.

• Only the federal 5% portion of HST.
• Only the provincial 8% portion of HST.
• No HST, as new housing is exempt.

Correct answer: The full 13% HST on the purchase price, less any applicable new housing rebates.

Explanation: Builders of new homes are generally required to collect the full 13% HST on the sale price. However, they are also responsible for managing the new housing rebates on behalf of the buyer, meaning the net amount remitted to the CRA is the HST less the rebate.