Construction or Renovation of Residential Complexes
If you build or substantially renovate a residential complex or if you build an addition to a multiple-unit residential complex, in order to lease it (in whole or in part) or to use it as your residence, you are, as a builder, considered to be the seller and the recipient of the residential complex. You are therefore deemed to have made a self-supply.
Self-supply of a residential complex
The self-supply rules apply only to residential complexes. If you meet the above-mentioned conditions, you must, as a rule, remit the GST and the QST calculated on the fair market value (FMV) of the residential complex or the addition and deemed to have been collected. You must remit this amount when filing your GST/HST and QST returns.
If you are not registered for the GHT/HST or QST, you must enclose your tax remittance with a completed copy of form FP-505.2-V, GST/HST and QST Return for the Self-Supply of a Residential Complex.
The subsequent sale of a residential complex is usually tax-exempt.
The self-supply rules do not apply in certain situations.
Payment deadline
Single-unit residential complexes, residential units held in co-ownership and multiple-unit residential complexes
The self-supply rules apply 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 can claim an input tax credit (ITC) and an input tax refund (ITR) for the GST and the QST paid on the construction or substantial renovation of the residential complex or unit. You can also claim an ITC and an ITR for the GST and the QST not recovered on the acquisition of the land that is part of the residential complex. If you are not a GST and QST registrant, you can claim a rebate.
Type of residential complex | The rules apply if | Payment of the GST and the QST |
---|---|---|
Single-unit residential complex Residential unit held in co-ownership Multiple-unit residential complex |
| On the later of:
Important: This deadline is the same regardless of whether you claimed rebates to reduce the taxes payable. |
Additions to multiple-unit residential complexes
The self-supply rules also apply to the construction of an addition to a multiple-unit residential complex. For example, if you add a new floor or wing to a multiple-unit residential complex and you lease a residential unit in the addition, you are considered to be a builder who has sold and acquired the addition at its fair market value (FMV).
However, if the whole residential complex is sold before the addition is occupied for the first time, the self-supply rules do not apply to the addition. In this situation, the addition and the residential complex are considered to be two separate residential complexes. Accordingly, the sale of the addition is taxable and the sale of the residential complex, excluding the addition, is tax-exempt.
Type of residential complex | The rules apply if | Payment of the GST and the QST |
---|---|---|
Multiple-unit residential complex |
| On the later of:
Important: This deadline is the same regardless of whether you claimed rebates to reduce the taxes payable. |