Registrant and non-registrant vendors of taxable real property (excluding zero-rated real property) must collect the GST or the QST, except in the following situations:
- The vendor does not reside in Canada (or Québec, for QST purposes). Note that a non-resident with a permanent establishment in Canada or Québec is not considered a resident and does not have to collect the QST.
- The purchaser is a registrant. If the purchaser is also an individual, this exception does not apply to real property that is a residential complex. Nor does it apply to a cemetery plot or place of burial, entombment or deposit of human remains or ashes.
Special tax rules apply to the sale of residential complexes.
Forms to be filed by purchasers
In the above-mentioned situations, purchasers must remit the GST and QST to us. Purchasers that are not registrants must enclose their GST and QST payments with form FP-505-V, Special-Purpose Returns.
Purchasers who are registrants that do not use the real property primarily (more than 50%) in commercial activities must also enclose the payments with form FP-505-V, Special-Purpose Returns.
Purchasers that are registrants and that use the real property primarily (more than 50%) in commercial activities must remit the taxes at the time of filing their regular return.
Purchasers must complete
- the section entitled “Statement respecting real property, immovables or imported supplies” on form FP-500-V, Detailed Calculations, where they file a combined GST–QST return
- the section entitled “Statement respecting real property or imported supplies” on form FPZ-34.CD-V, Detailed GST/HST Calculation, where they file a GST return
- the section entitled “Statement respecting immovables” on form VDZ-471.CD-V, Detailed QST Calculation, where they file a QST return
Purchasers must file these forms with their regular return.
If the purchaser is a registrant and intends to use the real property primarily (more than 50%) in commercial activities, the GST and QST must be remitted on or before the day on which the purchaser is required to file the return for the reporting period during which the GST and QST become payable. In all other cases, the purchaser must remit the taxes on or before the last day of the calendar month that follows the month during which the GST and QST were payable.
Purchasers, upon completing their GST and QST returns, may be entitled to a refund. Purchasers may use the amount of the refund to offset the tax payable on the real property.
The transitional measures concerning the application of the HST in Ontario and Prince Edward Island may apply to the sale of new housing in one of these provinces. For more information, contact us.
A purchaser that pays GST or QST to the vendor, when in fact the purchaser was required to pay the taxes to us, must request a refund of the tax from the vendor. If the vendor does not refund the amount requested by the purchaser, the vendor is required to report the amount on the return to be filed with us and enclose payment with the return.
The purchaser must then remit the taxes as explained above, but may apply for a refund of the tax paid in error to the vendor. To apply for a refund of the GST, the purchaser must file form FP-189-V, General GST/HST Rebate Application. To apply for a refund of the QST, the purchaser must file form VD-403-V, General Application for a Québec Sales Tax (QST) Rebate.
The purchaser generally has two years after the date of payment of the tax to apply for a refund.