Do I Pay GST When I Assign My Presale? Clearing the Confusion in BC
Updated October 2026
Since 2022, all presale assignment sales in BC are subject to 5% GST. Learn exactly what is taxed, how to avoid double taxation, and what assignors and assignees need to know.
PresaleProperties.com is the buyer-focused representation practice of Uzair Muhammad (REALTOR, Real Broker BC), serving presale and new construction buyers across Metro Vancouver and the Fraser Valley from 3211 152 St, Building C, Suite 402, Surrey BC V3Z 1H8 — (672) 258-1100.
Since May 2022, the CRA has implemented strict new rules on how GST applies to presale assignment sales. Whether you're in Surrey, Coquitlam, or Langley, here's what you need to know before you sell.
Assigning a presale contract—selling your right to a unit before it is completed—is a popular strategy in Metro Vancouver and the Fraser Valley. However, it is also one of the most misunderstood areas of real estate taxation.
Since May 2022, the CRA has implemented strict new rules that changed how GST applies to assignment sales. Whether you are in Surrey, Coquitlam, or Langley, here is the definitive guide to GST on assignments and how to avoid the "double taxation" trap.
1. The 2022 Rule Change: No More "Primary Residence" Loophole
Before May 7, 2022, you could often avoid paying GST on an assignment if you could prove your original intent was to live in the home as a primary residence.
The New Reality: The CRA has removed the "intent" test for GST. Now, all assignment sales of new residential housing are subject to 5% GST. It no longer matters if you were planning to move in or if you are an investor; the assignment itself is now considered a taxable supply.
2. What Exactly is Taxed? (GST on Profit vs. Price)
This is where the most confusion lies. There are actually two separate "GST events" in an assignment sale:
A. GST on the Assignment Fee (The Profit)
The person selling the contract (the Assignor) must collect 5% GST on the "Assignment Fee."
What's included? The CRA considers the taxable amount to be the entire amount you receive from the new buyer, minus the deposits you already paid to the developer.
Example: You bought a condo in Burquitlam for $500k and paid a $100k deposit. You assign it to a new buyer for $650k. Your "Assignment Fee" is $150k. You (the Assignor) are responsible for collecting 5% GST on that $150k ($7,500) and remitting it to the CRA.
B. GST on the Original Purchase Price
The new buyer (the Assignee) is responsible for paying the 5% GST on the original contract price to the developer when the building completes.
Example: In the scenario above, the new buyer will pay 5% GST on the original $500k price ($25,000) at the time of completion.
3. The "Double Taxation" Fear
Many buyers worry they are paying GST twice on the same property. While it feels that way, you are technically paying tax on two different things:
🏠 The New Buyer
Pays tax on the physical real estate (the original $500k).
📄 The Assignor
Pays tax on the "right" to that contract (the $150k profit).
How to Protect Yourself
- Assignors: Ensure your assignment agreement explicitly states whether the price is "inclusive" or "exclusive" of GST. Most professional real estate agents in Surrey will write the contract as "Plus GST" so the Assignor doesn't have to pay it out of their own pocket.
- Assignees: Remember that you cannot claim a GST rebate on the assignment fee. You can only claim a rebate on the GST paid on the original purchase price (if you qualify).
4. Investor vs. Principal Residence: Does it Matter?
While the GST rules are now the same for everyone, the Income Tax rules are very different:
| Feature | Principal Residence Intent | Investor Intent |
|---|---|---|
| GST on Assignment | 5% Payable on Profit | 5% Payable on Profit |
| Profit Treatment | Likely taxed as Business Income (100% taxable) | Likely taxed as Business Income (100% taxable) |
| Flipping Tax | Subject to the BC Anti-Flipping Tax if held <365 days | Subject to the BC Anti-Flipping Tax if held <365 days |
Note: Because you never actually moved into the home, you cannot claim the Principal Residence Exemption on an assignment profit. The CRA almost always views assignment profits as fully taxable business income.
5. Summary Checklist for Assignments
If you are assigning a unit in Langley or Delta, follow these steps:
Check the Developer's Fee: Most developers charge a 1% to 3% "Assignment Fee" just for permission to sell. This fee also has GST on it!
Talk to an Accountant: Assignment taxation is complex. Do not rely on a sales rep's advice.
Use a Specialized Realtor: Ensure your agent uses the correct BCREA Assignment Addendum that clearly outlines who is responsible for the GST.
Conclusion
GST on assignments is no longer a "maybe"—it is a "must." By understanding that you are taxed on the profit (the assignment fee) and that the new buyer handles the tax on the original price, you can navigate your sale without any nasty surprises from the CRA.
References
Sources & references
- CRA — GST/HST new housing rebate
- Government of BC — Property transfer tax
- Government of BC — BC home flipping tax
- BC Financial Services Authority (BCFSA)
- REDMA — Real Estate Development Marketing Act
This is general information, not tax or legal advice — confirm details with your accountant or lawyer.
About the author
Uzair Muhammad, REALTOR® — Real Broker BC. Presale buyer-side specialist · 450+ families · 10 years City of Surrey Planning & Bylaws.
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Sources and disclosure
Written and reviewed by Uzair Muhammad, REALTOR® (Real Broker BC), a buyer-focused presale specialist in Metro Vancouver and the Fraser Valley. Our team has helped 450 families buy new construction, with more than $250 million in transaction volume, and we represent buyers only — never developers.
Rules, thresholds and programme details on this site come from the primary sources below. Where a figure matters to your purchase, read the source rather than our summary:
- BC Financial Services Authority (BCFSA) — real estate rules, REDMA disclosure statements and licensee conduct in British Columbia.
- Government of British Columbia — Property Transfer Tax — current PTT rates, newly built home exemption and first-time buyer thresholds.
- Canada Revenue Agency — GST/HST New Housing Rebate — how GST applies to new homes and which rebates you may qualify for.
- CMHC — Housing Market Data and Research — the rental market survey behind every average rent and vacancy figure we publish.
- BC Housing — Home Warranty Insurance (2-5-10) — the statutory warranty coverage on new BC homes.
This is general information, not financial, legal or tax advice. Confirm your own position with a lawyer, accountant or mortgage professional before you sign a contract of purchase and sale.
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