Refunds of Taxes Paid
If you are a GST and QST registrant, you can recover the GST and QST paid on the expenses incurred to acquire, build, improve, lease or operate a residential complex, provided the complex is used or supplied in the course of commercial activities (for example, when you make the taxable sale of the complex or are deemed to be the person who made the taxable sale under the self-supply rules).
The GST will be refunded to you as an input tax credit (ITC) and the QST as an input tax refund (ITR).
However, some supplies of immovables, such as the lease of a residential unit for at least one month and the sale of a residential complex that is not new, are exempt supplies and are therefore not commercial activities.
For information on how to claim an ITC and an ITR, see Input Tax Credits and Input Tax Refunds.
Rebate of the GST and the QST paid by non-registrants on construction costs
If you are not a GST and QST registrant and the residential complex is used or supplied in the course of commercial activities (for example, you are required to remit the GST and the QST deemed to have been collected under the self-supply rules), you can claim a rebate with respect to the tax paid on the purchase of the land (where applicable), the materials and the services relating to the construction of the residential complex.
Depending on the circumstances, the rebate may cover all or part of the tax you paid. You have two years after the date on which the self-supply rules apply to you to file a rebate application. However, the deadline for paying the taxes under these rules is different. You must pay the taxes by the later of the following dates:
- the date on which possession of the residential complex is transferred, or on which the builder occupies the complex;
- the date on which the work is substantially completed.
Use the following forms to claim your GST/HST rebate and your QST rebate:
- GST/HST: Rebate Application (FP-189-V);
- QST: General Application for a Québec Sales Tax (QST) Rebate (VD-403-V).
New housing rebate
Under certain conditions, you may be entitled to a rebate (partial refund) of the GST and QST you paid in the following situations:
- You purchased land and new or substantially renovated housing from a builder.
- You built a residential unit or had it built.
- You substantially renovated a residential unit or had substantial renovations done.
New residential rental property rebate
As the owner of new or substantially renovated residential rental property, you may, under certain conditions, be entitled to a rebate (partial refund) of the GST and QST paid in relation to:
- the purchase of the residential rental property;
- the construction of the residential rental property;
- the substantial renovation of the residential rental property.