Registrant and non-registrant 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.
Special tax rules apply to the sale of residential complexes.
In the above-mentioned situations, purchasers must remit the GST and QST to us. Purchasers that are not registrants 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.
Purchasers who are registrants that do not intend to use the real property primarily (more than 50%) in commercial activities must also complete these forms.
Purchasers that are registrants and that intend to use the real property primarily (more than 50%) in commercial activities must remit the taxes at the time of filing their regular return.
Registrants that use a combined GST–QST return must complete the section entitled “Statement respecting real property, immovables or imported supplies” on form FP-500-V, Detailed Calculations (GST/HST – QST).
Registrants that use a GST return must also complete the section entitled “Statement respecting real property or imported supplies” on form FPZ-34.CD-V, Detailed GST/HST Calculation.
Registrants that use a QST return must also complete the section entitled “Statement respecting immovables” on form VDZ-471.CD-V, Detailed QST Calculation.
Registrants must file these forms when they file 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 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.
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. For GST purposes, the vendor must file form FP-189-V, General GST/HST Rebate Application. For QST purposes, the vendor must file form VD-403-V, General Application for a Québec Sales Tax (QST) Rebate.
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, but can apply for a refund of the tax paid in error to the vendor. The purchaser must file form FP-189-V to apply for a refund of the GST and form VD-403-V to apply for a refund of the QST. The purchaser generally has two years after the date of payment of the tax to apply for a refund.