Whether or not they are registered, vendors of taxable 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, for QST purposes) is not considered a resident for the application of this rule.
- The purchaser is a registrant. If the purchaser is also an individual, the real property must not be a residential complex or a cemetery plot or place of burial, entombment or deposit of human remains or ashes.
In these situations, the purchaser is required to report and remit the GST and QST to us.
If the purchaser is not a registrant, they must report and remit the GST and QST using forms FP-505-V, Special-Purpose Returns, and FP-505.D.A-V, GST/HST – QST Return Respecting the Purchase of Taxable Immovables or Taxable Carbon Emission Allowances.
If the purchaser is a registrant that does not intend to use the real property primarily (more than 50%) in commercial activities, they must also complete these forms.
If the purchaser is a registrant that intends to use the real property primarily (more than 50%) in commercial activities, they must remit the taxes at the time of filing their regular return. If filing on paper, the purchaser must also complete Part 2 of one of the following forms, depending on their situation:
- form FP-500-V, Detailed GST/HST and QST Calculations and Return Respecting Taxable Real Property (Immovables), Taxable Carbon Emission Allowances and Imported Taxable Supplies, if the purchaser files a GST and QST return;
- form FPZ-34.CD-V, Detailed GST/HST Calculations and Return Respecting Taxable Real Property, Taxable Carbon Emission Allowances and Imported Taxable Supplies, if the purchaser files a GST return;
- form VDZ-471.CD-V, Detailed QST Calculation and Return Respecting Taxable Immovables or Taxable Carbon Emission Allowances, if the purchaser files a QST 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 to us 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.
If, upon completing a GST and QST return, a purchaser finds that it is entitled to a refund, the purchaser can use the amount of the refund to offset the tax payable on the real property. The purchaser must then remit the difference to us, if any.
A vendor that is not a registrant can claim a refund if the vendor was unable to recover the taxes paid on the purchase of real property or improvements to it. The vendor must file a General GST/HST and QST Rebate Application (FP-2189-V).
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, the purchaser must still remit the taxes as explained above. However, the purchaser can apply for a refund of the tax paid in error by filing form FP-2189-V. The purchaser generally has two years after the date of payment of the tax to apply for a refund.
For help completing the application form, see the Guide to the General GST/HST and QST Rebate Application (FP-2189.G-V).