New or Substantially Renovated Residential Rental Property
As the owner of new or substantially renovated (This link will open a new window) residential rental property, you may, under certain conditions, be entitled to a rebate (partial refund) of the GST and QST paid when the property was
- built; or
- substantially renovated.
You may claim such a rebate if you are not entitled to input tax credits and input tax refunds for the GST and QST you paid when you purchased or self-supplied the property.
Note that, in certain situations, you may not be entitled to the rebate for new or substantially renovated residential rental property, but rather to one of the following rebates:
- the rebate for a cooperative housing corporation;
- the rebate in respect of the sale of a building and the lease of land;
- the rebate for land leased for residential purposes.
Deadline for claiming a rebate
The deadline for claiming a rebate is two years following the end of the month in which
- the taxes on your purchase became payable; or
- you had to pay the taxes at the time of self-supply.
Only one rebate claim can be made per residential complex. If you are a co-owner of the complex, your rebate claim must be based on your percentage of ownership.
If you had to pay the taxes at the time of self-supply, you must pay them 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.
The maximum rebate corresponds to approximately 36% of the taxes paid (GST and QST) on each qualifying residential unit in the housing complex.
Under the GST system, the rebate cannot exceed $6,300. The rebate decreases progressively if the purchase price or the fair market value (This link will open a new window) (FMV) of the new or substantially renovated qualifying residential unit in the housing complex is greater than $350,000. The rebate amount is zero if the purchase price or FMV is $450,000 or more.
Under the QST system, the rebate cannot exceed $7,182. The rebate decreases progressively if the purchase price or fair market value (FMV) of the new or substantially renovated qualifying residential unit in the housing complex is greater than $200,000. The rebate amount is zero if the purchase price or FMV is $225,000 or more.
- Under the GST system, you must file form FP-524-V, New Residential Rental Property GST Rebate Application. If the housing complex has more than two housing units, you must also file form FP-525-V, New Residential Rental Property GST Rebate Application Supplement - Multiple Units.
- Under the QST system, you must use the version of form VD-370.67-V, New Residential Rental Property QST Rebate, that corresponds to your situation.