You Built a Residential Rental Complex
For your business to be entitled to a rebate (partial refund) of the GST and QST paid on the construction of a residential rental complex, all the following conditions must be 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 residential unit in the complex is rented on a long-term basis (at least 12 months) as a primary place of residence.
- The 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.
In the case of a duplex, the FMV limit applies to the total FMV of the two units.
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 or renovated 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.
You must file your rebate application no later than two years after the end of the month in which the taxes on your purchase become payable.
To apply for a rebate, file the following forms:
- For the GST, file 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.
- For the QST, file form VD-370.67-V or VD-370.89-V, New Residential Rental Property QST Rebate.
- Only one GST rebate application can be submitted for a single residential complex, even if the complex is held in co-ownership.
- For the QST, all the co-owners must file their own separate rebate application based on their percentage of ownership.
As a builder, you may be considered to be be both the seller and the recipient of a residential complex if you build a residential complex (or hire someone to build one) and then lease all or part of it.
You may therefore be deemed to have made a self-supply, in which case you will be required to remit the taxes, which will be considered to have been calculated and collected on the FMV of the complex.
For more information on the self-supply rules, click Construction or Renovation of Residential Complexes.