New or Substantially Renovated Residential Rental Property
As the owner of new or substantially renovated residential rental property, you may, under certain conditions, be entitled to a rebate (partial refund) of the GST and QST paid when the property was:
- built; or
- substantially renovated.
You can claim a rebate if you are not entitled to input tax credits and input tax refunds for the GST and QST you paid by self-assessment or when you purchased the property.
Note that, in certain situations, you may not be entitled to the rebate for new or substantially renovated residential rental property, but rather to one of the following rebates:
- the rebate for a cooperative housing corporation;
- the rebate in respect of the sale of a building and the lease of land; or
- the rebate for land leased for residential purposes.
The deadline for claiming a rebate is two years following the end of the month in which:
- the taxes on your purchase became payable; or
- you had to pay the taxes by self-assessment.
Only one rebate claim can be made for the same residential complex. If you are a co-owner of the complex, your rebate claim must be based on your percentage of ownership.
The maximum rebate corresponds to approximately 36% of the taxes paid (GST and QST) on each qualifying residential unit in the residential complex.
Under the GST system, the rebate cannot exceed $6,300. The rebate decreases progressively if the purchase price or the fair market value (FMV) of the new or substantially renovated qualifying residential unit in the residential complex is greater than $350,000. The rebate is zero if the purchase price or FMV is $450,000 or more.
Under the QST system, the rebate cannot exceed $7,182. The rebate decreases progressively if the purchase price or fair market value (FMV) of the new or substantially renovated qualifying residential unit in the residential complex is greater than $200,000. The rebate is zero if the purchase price or FMV is $225,000 or more.
- To claim a GST rebate, you must file form FP-524-V, New Residential Rental Property GST Rebate Application. If the residential complex has more than two housing units, you must also file form FP-525-V, New Residential Rental Property GST Rebate Application Supplement - Multiple Units.
- To claim a QST rebate, you must use the version of form VD-370.67-V, New Residential Rental Property QST Rebate, that corresponds to your situation.
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 all or part of it or use it as your residence, you may, as the builder, be considered to be both the seller and the recipient of the residential complex.
As such, you may be deemed to have made a self-supply and consequently have to remit taxes. If this is the case, the taxes will be deemed collected and calculated on the fair market value (FMV) of the complex or addition. For more information, click Construction or Renovation of Residential Complexes.