Specialized Residential Complexes
A university, public college or school authority that is the builder of a newly constructed or substantially renovated residential complex is not required to remit the GST and the QST deemed to have been collected if the residential complex or the addition was built, acquired or renovated primarily (more than 50%) to provide housing for students who attend the educational institution.
A community organization that is a community, an association or a body of individuals recognized as a religious community under income tax legislation is not required to remit the GST and the QST deemed to have been collected on the construction or substantial renovation of a residential complex or an addition to be used exclusively (at least 90%) as housing for its members.
Employers who are obliged to acquire, build or substantially renovate a residential complex to house employees at a remote work site can take advantage of a tax relief measure. The measure allows you to defer remittance of the GST and the QST deemed to have been collected as a result of the application of the self-supply rules.
You can take advantage of this measure if the following conditions are met:
- You are a builder registered for the GST and the QST.
- You have elected to defer payment of the GST and the QST (this election must be made using form GST17, Election Concerning the Provision of a Residence or Lodging at a Remote Work Site, which is available on the Canada Revenue Agency website).
- The residential complex will be used to house your employees, contractors and subcontractors at the work site.
- The work site is so remote that your employees cannot be expected to make their home there.
You can claim an input tax credit (ITC) or an input tax refund (ITR) respecting the tax paid on the acquisition, construction or substantial renovation of the residential complex.
This measure is effective until the residential complex is sold or leased primarily (more than 50%) to persons who are not employees, contractors or subcontractors of the employer's business. If the residential complex is sold, the builder must collect GST and QST on the selling price. If the residential complex is leased, the self-supply rules apply and the builder must remit the GST and the QST calculated on the fair market value (FMV) of the complex.
A work site is generally considered remote if the closest community of at least 1,000 people is more than 80 kilometres away by the most direct route usually taken. If a work site does not meet these criteria, we can still assess its eligibility based on the circumstances.