Remitting Tax on the Construction or Renovation of a Residential Complex (Self-Supply)
You generally have to remit GST/HST and QST in the following situations:
- You build a residential complex on land you own.
- You build or substantially renovate such a complex to lease all or part of it or to use it as your residence.
- You build an addition (for example, a new floor or wing) to a residential complex to lease all or part of it or to use it as your residence.
In such cases, you, the builder, are considered to be the seller and the recipient of the residential complex. You are deemed to have made a self-supply. You must therefore remit the tax that you are deemed to have collected as the seller and paid as the recipient, which is calculated on the fair market value (FMV) of the complex or addition.
If you are an individual that builds or substantially renovates a residential complex other than in the course of a business, an adventure or a commercial concern, you are not considered to be a builder.
Note that these “self-supply rules” apply only to new or substantially renovated residential complexes.
If any of the situations covered on the pages listed below apply to you, you may have different obligations for remitting tax on the construction or substantial renovation of a residential complex:
Remitting the tax
If you are registered for the taxes, you remit that tax when you file your regular tax return. The deadline varies depending on your situation (see “Payment deadline” below).
If you are not registered for the taxes, complete form FP-505.2-V, GST/HST and QST Return for the Self-Supply of a Residential Complex, along with a cheque or money order payable to the Minister of Revenue of Québec.
You can use our estimator to determine the tax deemed to have been collected on the FMV of a residential complex or unit
You built or renovated a single unit or multiple unit residential complex or a residential unit held in co-ownership
If you build or substantially renovate a single unit residential complex, a residential unit held in co-ownership or a multiple unit residential complex, you must remit the tax deemed paid. See the table below for the applicable deadline.
|
Type of residential complex |
Situation |
Payment deadline |
|---|---|---|
|
Single unit residential complex Residential unit held in co-ownership Multiple unit residential complex |
|
The later of:
|
You build an addition to a multiple unit residential complex
If you build an addition to a mutliple unit residential complex, you must also pay the tax deemed collected. See the table below for the applicable deadline.
| Type of residential complex |
Situation |
Payment deadline |
|---|---|---|
|
Multiple unit residential complex |
|
The later of:
|
The deadline is the same if refunds are used to reduce the taxes payable. Click Refunds of Taxes Paid to learn more.
Penalties and interest may apply if you do not file your return or you file it late.