Property and Services Offered in a Senior Citizens’ Residence
As a rule, a senior citizens’ residence offers rooms or apartments to its residents, as well as meals and various services.
Under the Act respecting the Régie du logement, the director of a senior citizens’ residence must list in the schedule to the lease, in the manner indicated below, the property and services supplied to residents:
- property and services included in the basic rent are to be listed in column 1
- property and services for which a fee is payable at the same frequency as the basic rent are to be listed in column 2 (these additional charges, plus the basic rent, constitute the total rent)
- property and services for which a fee is payable each time the property or service is supplied are to be listed in column 3
Property and services included in the supply of a dwelling
The property and services listed in columns 1 and 2 of the schedule to the lease are part of a single exempt supply of a dwelling, provided that:
- the property and services are acquired at the time the lease is signed
- the fees charged for the property and services are payable at the same frequency as the rent and are included in the total rent, and
- the property and services are of the type that is ordinarily supplied in a senior citizens’ residence
Revenu Québec considers that the following property and services, together with the dwelling, constitute a single supply of a dwelling:
- meals and snacks
- group activities or religious activities offered to all residents
- front desk and telephone reception services
- monitoring services (such as an emergency call system installed in rooms and apartments)
- housekeeping in common areas (stairways, corridors, cafeteria, common rooms)
- snow removal (balconies, visitor parking areas)
- cable television
- weekly housekeeping in rooms and apartments, including laundry service for bedding and towels
- group transportation for activities offered to all residents
- daily administration of medications
- assistance with certain activities of daily life
- weekly laundry service for clothing
- transportation and escort services for residents when they are obliged to leave the premises for medical reasons
Property and services not included in the supply of a dwelling
Other services requested by residents and provided in addition to some or all of the above-mentioned services are generally not considered to be included in the supply of the dwelling, regardless of the place where they are listed in the schedule to the lease (column 1, 2 or 3). These include services that are not in any way related to the supply of a dwelling, such as a fitness centre or a carwash service.
Services not included in the supply of a dwelling are subject to GST and QST (unless they are otherwise exempt, such as nursing care).
In addition, where a resident acquires property and services from the director on an irregular basis, the director must collect GST and QST, unless the property and services are otherwise exempt. Examples of such taxable services include meals served to residents’ guests and hairdressing and beauty care services.
Property and services offered in a healthcare establishment
Where part of a congregate residential facility is considered to be a healthcare establishment in which nursing services must be provided, the director is not required to collect GST or QST on the property and services supplied to the residents of that part of the facility. For example, no GST or QST need be collected on property and services supplied to the residents of a residential and long-term care centre (CHSLD).