New Housing Rebate
Under certain conditions, individuals may be entitled to a rebate (partial refund) of the GST and QST paid when they purchase or build a new home. The GST rebate is equal to 36% of the GST paid, but may not exceed $6,300; the QST rebate is equal to approximately 50% of the QST paid, but may not exceed $9,804.
If you are an individual and you purchase land and a new home at the same time from a builder under a single sales contract (known as a “turnkey contract”), you can ask the builder to pay or credit the rebate directly to you. The builder must then include form FP-2190.C-V, GST-QST New Housing Rebate Application: Rebate Granted by a Builder, when filing GST and QST returns. This form enables the builder to deduct the amount of the rebate paid or credited to you from the net amount of tax that has to be remitted to Revenu Québec.
If you first acquire land and then sign a contract to build a home, you must claim the rebate directly from Revenu Québec by submitting form FP-2190.P-V, GST-QST New Housing Rebate Application: Owner of a New or Substantially Modified Home. In general, you have two years from the day construction is substantially complete to claim the rebate.
In such a case, the builder carrying out the construction work is not allowed to pay or credit the rebate to you. Any builder that does so will be required to pay the applicable interest and penalties, and Revenu Québec will not allow the deduction claimed in the builder’s GST and QST returns. The builder may, however, ask you to return any rebate granted to you in error.
For more information, click New or Substantially Renovated Housing.