GST on real estate commission in BC: who pays it and does the rebate include it?
Real estate commission is a taxable service in Canada, so 5% GST is added on top. In BC, there is no PST on commission.
Who pays it
Whoever pays the commission pays the GST on it. On a normal BC resale, that is the seller. On a $1,000,000 sale with total commission of about $29,500, the GST is about $1,475 more.
Does the rebate include GST?
No. The rebate is calculated on the commission before tax. If the buyer's brokerage earns $13,570 plus GST, your 50% share is $6,785, not half of the GST-inclusive amount. The brokerage has to remit the GST it collected regardless of what it pays you.
GST on the home itself
A separate question. Resale homes are generally exempt from GST. New homes, including presales and substantially renovated homes, are not. That GST is on the price and has nothing to do with commission. First-time buyers of new homes may qualify for federal GST relief; your lawyer or notary can confirm.