Remitting Tax on the Construction or Renovation of a Residential Complex (Self-Supply)

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You generally have to remit GST/HST and QST in the following situations:

  • You build a residential complex on land you own.
  • You build or substantially renovate such a complex to lease all or part of it or to use it as your residence.
  • You build an addition (for example, a new floor or wing) to a residential complex to lease all or part of it or to use it as your residence.

In such a case, you, the builder, are considered to be the seller and the recipient of the residential complex. You are therefore deemed to have made a self-supply. You must therefore remit the tax that you are deemed to have collected as the seller and paid as the recipient, which is calculated on the fair market value (FMV) of the complex or addition.

Note that these “self-supply rules” apply only to new or substantially renovated residential complexes.

Important

If any of the situations covered on the pages listed below apply to you, you may have different obligations for remitting tax on the construction or substantial renovation of a residential complex:

Remitting the tax

If you are registered for the taxes, you remit that tax when you file your regular tax return. The deadline varies depending on your situation (see “Payment deadline” below).

If you are not registered for the taxes, complete form FP-505.2-V, GST/HST and QST Return for the Self-Supply of a Residential Complex, along with a cheque or money order payable to the Minister of Revenue of Québec.

Note

You can use our estimator to determine the tax deemed to have been collected on the FMV of a residential complex or unit

Payment deadline

You built or renovated a single-unit or multiple-unit residential complex or a residential unit held in co-ownership

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 must remit the tax deemed paid. See the table below for the applicable deadline.

Tax payment deadline – Construction or renovation of a residential complex

Type of residential complex

Situation

Payment deadline

Single-unit residential complex

Residential unit held in co-ownership

Multiple-unit residential complex

  • You are a builder and you lease the residential complex or unit to an individual for use as a place of residence.
  • You are a builder who is an individual and you occupy the residential complex or unit as your place of residence.

The later of:

  • the date on which possession of the residential complex is transferred, or on which the builder occupies the complex;
  • the date on which the work is substantially completed.
You build an addition to a multiple-unit residential complex

If you build an addition to a mutliple-unit residential complex, you must also pay the tax deemed collected. See the table below for the applicable deadline.

Tax payment deadline – Construction of an addition to a residential complex
Type of residential complex

Situation

Payment deadline

Multiple-unit residential complex

  • You are the builder and you lease a residential unit in the addition to an individual for use as a place of residence.
  • You are a builder who is an individual and you occupy a residential unit in the addition as your place of residence.

The later of:

  • the date on which possession of the addition is transferred, or on which a residential unit in the addition is occupied;
  • the date on which the work is substantially completed.
Note

The deadline is the same if refunds are used to reduce the taxes payable. Click Refunds of Taxes Paid to learn more.

Penalties and interest may apply if you do not file your return or you file it late.

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