New or Substantially Renovated Residential Rental Complexes – Businesses
If your business rents residential units on a long-term basis in a new or substantially renovated residential rental complex that it owns, you may be entitled to a rebate (partial refund) of the GST and QST paid when the complex was purchased, built or substantially renovated.
You may be entitled to a GST and QST rebate if all the following conditions are met:
- You purchased the complex in a single transaction.
- You paid the GST and QST when you purchased the complex.
- At least one unit in the complex is rented on a long-term basis (at least 12 months) as a primary place of residence.
- The fair market value (FMV) of each unit for which a rebate is being claimed is under $450,000 for GST purposes and under $225,000 for QST purposes
You may be entitled to a GST and QST rebate if all the following conditions are met:
- You owned the land before construction began.
- You self-assessed and paid the taxes on the fair market value (FMV) of the complex.
- At least one unit in the complex is rented on a long-term basis (at least 12 months) as a primary place of residence.
- The fair market value (FMV) of each unit for which a rebate is being claimed is under $450,000 for GST purposes and under $225,000 for QST purposes
You may be entitled to a GST and QST rebate if all the following conditions are met:
- You owned the complex before the renovation work began.
- The renovation work is at least 90% completed.
- You self-assessed and paid the taxes on the fair market value (FMV) of the complex.
- At least one unit in the complex is rented on a long-term basis (at least 12 months) as a primary place of residence.
- The fair market value (FMV) of each unit for which a rebate is being claimed is under $450,000 for GST purposes and under $225,000 for QST purposes.
- For purposes of the rebate, the FMV limit for a duplex applies to the total FMV of the two units.
- You can use our estimator to determine the FMV of a residential complex or unit and estimate your rebate.
Maximum rebate
The rebate can reach up to 36% of the taxes paid on each qualifying residential unit, for a maximum GST rebate of $6,300 and a maximum QST rebate of $7,182.
The amount of the rebate is progressively reduced when the purchase price or FMV of the new residential unit is more than $350,000 for GST purposes and $200,000 for QST purposes.
There is no rebate once the purchase price or FMV reaches $450,000 for GST purposes or $225,000 for QST purposes.
Rebate application
You must apply for a rebate within two years of the end of the month the taxes were demeed to be paid.
GST
A single GST rebate application can be submitted for a single residential complex even if the complex is held in co-ownership. You must use form FP-524-V, New Residential Rental Property GST Rebate Application.
If there are more than two units in the complex, also file form FP-525-V, New Residential Rental Property GST Rebate Application Supplement – Multiple Units.
QST
For the QST, all the co-owners must file a separate rebate application based on their percentage of ownership. File form VD-370.67-V, New Residential Rental Property QST Rebate.