Is HST or GST charged on a Vancouver renovation?

In British Columbia, you'll pay GST (5%) on renovation services — not HST. BC opted out of the Harmonized Sales Tax in 2013 following a provincial referendum, so the two taxes are collected separately here.

For most residential renovation work in Metro Vancouver, here's how it breaks down: GST at 5% applies to contractor labour and services, and PST at 7% applies to materials and some taxable supplies. However, when you hire a contractor who supplies both labour and materials, the GST applies to the total invoice (labour + materials combined), while PST is typically handled by the contractor on the material purchases — you generally won't see PST as a separate line item on your renovation invoice.

So in practical terms, expect to see 5% GST added to your contractor's invoice for the full scope of work.

A Few Important Nuances

New construction vs. renovation — If you're building a brand-new home (including a laneway house or a new multiplex unit under Vancouver's R1-1 zoning), the GST New Housing Rebate may apply. You can recover a portion of the GST paid if the home will be your primary residence and the purchase price is under $450,000 (partial rebate up to $1.5M). This is administered through the CRA — talk to your accountant or tax advisor about eligibility.

Substantial renovations — CRA defines a "substantial renovation" as one where 90% or more of the interior of an existing home is removed or replaced. In these cases, the renovation may be treated similarly to new construction for GST purposes, and a New Housing Rebate may be available. This is a nuanced area — if your project is large-scale (think full gut renovation of a Vancouver Special or a major character home restoration), get advice from a tax professional before you start.

Short-term rental properties — If you're renovating a property used for commercial purposes or short-term rentals, different GST rules may apply and input tax credits could be available to you as a business.

For the vast majority of Metro Vancouver homeowners doing a kitchen reno, bathroom update, basement suite, or addition — budget 5% GST on top of your contractor's quoted price. Always confirm with your contractor whether their quote is plus GST or GST-included, as this affects your true out-of-pocket cost.

For specific tax questions, the CRA's GST/HST information line is 1-800-959-5525, or consult a BC-based accountant familiar with residential construction. Your contractor should also be GST-registered if their annual revenue exceeds $30,000 — it's worth confirming this before signing a contract.

Browse licensed renovation contractors in our directory at the Vancouver Construction Network to find professionals who handle all the billing and tax compliance properly.