GST and QST Rebate for Owners of New or Substantially Renovated Housing
The GST and QST apply to the sale of:
- new residential complexes;
- substantially renovated residential complexes;
- construction materials;
- construction services; and
- land, in certain cases.
As an individual, you may be entitled to a rebate (partial refund) of the GST and QST you paid in the following situations.
Eligibility requirements for the GST and QST rebate
You purchased a new or substantially renovated residential unit (and the land on which it is located) from a builder
To be eligible for a GST and QST rebate for the purchase of a new or substantially renovated residential unit (and the land on which it is located) from a builder, the following conditions must be met:
- You and any co-owners are individuals.
- The unit is a single-unit residential complex or a residential unit held in co-ownership.
- You purchased the unit and the land at the same time, from the same builder, under a single sale agreement.
- You or a co-owner paid GST and QST on the purchase of the residential complex.
- The construction or renovation work was at least 90% completed when ownership of the unit was transferred to you or a co-owner.
- When the work was completed, you, a relation, a co-owner or their relation was the first occupant of the unit.
- The unit is your primary place of residence or that of a relation, or the primary place of residence of a co-owner or their relation.
- The purchase price of the unit and the land was under $450,000 for GST purposes and under $300,000 for QST purposes.
You built a residential unit or hired someone to do so.
To be entitled to a rebate (partial refund) of the GST and QST when you build a residential unit or hire someone to build one, all the following conditions must be met:
- You and any co-owners are individuals.
- The unit is a single-unit residential complex or a residential unit held in co-ownership.
- You or a co-owner owned or rented the land before construction began.
- You or a co-owner paid GST and QST on the construction of the residential complex.
- You, a relation, a co-owner or their relation was the first occupant of the unit after construction began.
- The unit is your primary place of residence or that of a relation, or the primary place of residence of a co-owner or their relation.
- The fair market value (FMV) of the unit and the land is under $450,000 for GST purposes and under $300,000 for QST purposes when construction is 90% completed.
You substantially renovated your residential unit or hired someone to do so.
To be entitled to a rebate (partial refund) of the GST and QST for substantial renovation work you did (or hired someone to do) on a residential unit, all the following conditions must be met:
- You and any co-owners are individuals.
- The unit is a single-unit residential complex or a residential unit held in co-ownership.
- You paid the GST and QST on the renovation work done on the residential complex.
- You, a relation, a co-owner or their relation was the first occupant of the unit after renovations began.
- The unit is your primary place of residence or that of a relation, or the primary place of residence of a co-owner or their relation.
- The fair market value (FMV) of the unit and the land is under $450,000 for GST purposes and under $300,000 for QST purposes when the renovation is 90% completed.
You purchased a new or substantially renovated residential unit located on leased land from a builder, or you purchased a share in a cooperative housing corporation.
To be eligible for a rebate of the GST and QST for the purchase of a new or substantially renovated residential unit on leased land from a builder, or for the purchase of a share in a cooperative housing corporation, the following conditions must be met:
- You and any co-owners are individuals.
- The unit is a single-unit residential complex or a residential unit held in co-ownership.
- The unit was built or substantially renovated and is your primary place of residence or that of a relation, or the primary place of residence of a co-owner or their relation.
- The construction or substantial renovations were at least 90% completed when ownership of the unit was transferred to you or a co-owner.
- You, a relation, a co-owner or their relation was the first occupant of the unit when the construction or substantial renovations were at least 90% complete.
- The fair market value (FMV) of the unit located on land leased from the builder or the purchase price of the share in the capital stock of the cooperative housing corporation is under $472,500 for the GST and under $344,925 for the QST.
If the residential unit is located on land leased from the builder, the lease must include an option to purchase the land and have a term of at least 20 years.
End of note
If you, a relation, a co-owner or their relation lived in the unit while the work was going on, expenses incurred more than two years after the day the unit was first occupied after the work began do not give entitlement to the rebate.
Maximum rebate
The maximum rebate is 36% of the GST paid and 50% of the QST paid. The rebate:
- cannot exceed $6,300 for the GST and $9,975 for the QST;
- decreases gradually when the purchase price of the land and the new or renovated residential unit is over $350,000 for the GST and $200,000 for the QST (over $367,500 for the GST and $229,950 for the QST, for the purchase of a share in the capital stock of a cooperative housing corporation or a residential unit located on land leased from the builder);
- is zero if the purchase price or the fair market value (FMV) is $450,000 or more for the GST and $300,000 or more for the QST ($472,500 or more for the GST and $344,925 or more for the QST, for the purchase of a share in the capital stock of a cooperative housing corporation or a residential unit located on land leased from the builder).
You can use our online estimator to determine the FMV of residential property or housing and to estimate your tax rebates.
Rebate application deadline
Your application must be filed no later than two years after the earliest of the following dates:
- the date that you became owner of the single unit residential complex, mobile home or residential unit held in co-ownership;
- the date that the renovation work was 90% completed;
- the date that is two years after the date that you, a relation, a co-owner or their relation first occupied the unit after the work began;
- the date that ownership was transferred to another person (ownership must be transferred before the unit is occupied).
Form to file
To apply for a tax rebate, you or a co-owner must use the form below best suited to your situation:
- GST-QST New Housing Rebate Application for a New Home Purchased from a Builder (FP-2190.AC-V);
- GST-QST New Housing Rebate Application: Owner of a New or Substantially Modified Home (FP-2190.P-V);
- GST-QST New Housing Rebate Application: Owner of a Home on Leased Land or a Share in a Housing Co-Op (FP-2190.L-V).
- You or the builder can file the rebate application with Revenu Québec. If the builder does so, they must pay or credit the rebate directly to you.
- Only one rebate application can be filed for all the construction work for a single residential complex.
- If there is more than one owner, only one co-owner can submit a rebate application to Revenu Québec.
You may be eligible for the first-time home buyers' GST rebate if certain conditions are met. To claim the rebate, file form FP-2190.APH-V, First-Time Home Buyers' GST Rebate Application: New or Substantially Renovated Home. In this case, you do not need to complete FP-2190.AC-V, FP-2190.P-V or FP-2190.L-V (as applicable) to claim the GST rebate for owners of a new or substantially renovated home, as this rebate is included in the first-time home buyers' GST rebate.
However, if the fair market value of the residential complex is under $300,000, you still have to complete form FP-2190.AC-V, FP-2190.P-V or FP-2190.L-V (as applicable) to claim the GST rebate.