Builders and GST/HST NETFILE

From: Canada Revenue Agency

GST/HST Info Sheet GI-118
July 2018

This version updates and replaces the one dated April 2013.

This info sheet provides builders with step-by-step instructions for completing their GST/HST NETFILE return and Schedule A and Schedule B to that return. It also explains the assessment, penalty, and interest consequences for builders if they do not report information and file their return according to the rules for electronic filing.

This version includes information about:

  • new simplified reporting of information for certain sales of grandparented housing;
  • the increases to the rates of the HST in New Brunswick and Newfoundland and Labrador from 13% to 15%, effective July 1, 2016; and
  • the increase to the rate of the HST in Prince Edward Island from 14% to 15%, effective October 1, 2016.

All legislative references in this publication are to the Excise Tax Act unless otherwise specified. The information in this publication does not replace the law found in the Act and its regulations.

If this information does not completely address your particular situation, you may wish to refer to the Act or relevant regulation, or call GST/HST Rulings at 1-800-959-8287 for additional information. If you require certainty with respect to any particular GST/HST matter, you may request a ruling. GST/HST Memorandum 1-4, Excise and GST/HST Rulings and Interpretations Service explains how to obtain a ruling or an interpretation and lists the GST/HST rulings centres.

If you are located in Quebec and wish to request a ruling related to the GST/HST, please call Revenu Québec at 1-800-567-4692. You may also visit the Revenu Québec website at revenuquebec.ca to obtain general information.

For listed financial institutions that are selected listed financial institutions (SLFIs) for GST/HST or Quebec sales tax (QST) purposes or both, whether or not they are located in Quebec, the CRA administers the GST/HST and the QST. If you wish to make a technical GST/HST or QST enquiry related to SLFIs, please call1-855-666-5166.

GST/HST rates

Reference in this publication is made to supplies that are subject to the GST or the HST. The HST applies in the participating provinces at the following rates: 13% in Ontario and 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island. The GST applies in the rest of Canada at the rate of 5%. If you are uncertain as to whether a supply is made in a participating province, see GST/HST Technical Information Bulletin B-103, Harmonized Sales Tax – Place of Supply Rules for Determining Whether a Supply is Made in a Province.

Electronic reporting requirements for builders

Many builders are required to file their GST/HST returns electronically (for example, using GST/HST NETFILE, GST/HST TELEFILE, GST/HST Electronic Data Interchange, or GST/HST Internet File Transfer) and to use specific information fields on their electronic return to report specific information. However, in some situations, builders must file their GST/HST returns using GST/HST NETFILE only.

Filing a paper GST/HST return instead of the required electronic GST/HST return, using the incorrect electronic filing method (for example, using GST/HST TELEFILE where GST/HST NETFILE is required), or inaccurate reporting of information can result in processing delays, net tax assessments, penalty and interest charges, and the retention of other refunds or rebates that the builder may be expecting from the Canada Revenue Agency (CRA). For more information, refer to GST/HST Info Sheet GI-099, Builders and Electronic Filing Requirements.

It is important to note that a builder that is a selected financial institution does not have electronic reporting requirements. For more information refer to Guide RC4050, GST/HST Information for Selected Listed Financial Institutions.

When must a builder use GST/HST NETFILE?

A builder must use GST/HST NETFILE to file its return for any reporting period in which the builder:

  • is deducting the amount of any British Columbia (B.C.) transition tax rebates it is entitled to claim (if an agent of the builder is deducting the amount of any B.C. transition tax rebates the builder is entitled to claim, the agent must use GST/HST NETFILE for the reporting period)Footnote 1;
  • makes a taxable sale or self-supply (where applicable) of a grandparented housing unit situated in Ontario, Nova Scotia (N.S.), Prince Edward Island (P.E.I.), New Brunswick (N.B.), or Newfoundland and Labrador (N.L.), where:
    • the total sales price, including the consideration for any other taxable supply made to the purchaser of an interest in the grandparented housing unit, is $450,000 or more or, in the case of a self-supply, the fair market value upon which you have to report the tax is $450,000 or more; and
    • the GST or federal part of the HST in respect of the sale or self-supply (where applicable) becomes payable in a reporting period of the builder that includes March 23, 2016,Footnote 2 or in any reporting period thereafter;
  • makes a taxable sale or self-supply (where applicable) of a non-grandparented housing unit situated in Ontario, N.S., P.E.I., N.B., or N.L., that it had originally purchased on a grandparented basis;
  • is required to report the transitional tax adjustment in its net tax calculation in respect of a sale(s) of grandparented housing units in OntarioFootnote 3 or P.E.I.Footnote 4;
  • is reporting a P.E.I. provincial transitional new housing rebate (either a rebate that the builder is entitled to claim or a rebate that is assigned to the builder by a purchaser who is entitled to claim the rebate)Footnote 5; or
  • is required to recapture input tax credits (RITCs) for the provincial part of the HST paid or payable on certain taxable supplies acquired in Ontario or P.E.I.Footnote 6

For information on the transitional rules for the increases to the HST rates in P.E.I., N.B., and N.L., and how those rules apply to supplies of housing in those provinces, refer to:

What is a grandparented housing unit?

The meaning of grandparented housing unit differs depending on the participating province in which the housing unit is situated.

Grandparented housing unit in Ontario

A grandparented housing unit situated in Ontario means a new or substantially renovated detached house, semi-detached house, or row-house unit sold to an individual, or a residential condominium unit or condominium complex sold to any person, under a written agreement of purchase and sale entered into before June 19, 2009, where both ownership and possession of the housing unit transfer under the agreement after June 2010. 

It does not include:

  • owner-built houses, duplexes, apartment buildings, mobile homes, or floating homes; and
  • housing units in respect of which a builder is considered to have made a self-supply.

Grandparented housing unit in Nova Scotia

A grandparented housing unit situated in N.S. means a new or substantially renovated detached house, semi-detached house, row-house unit, residential condominium unit, duplex, mobile home, or floating home sold to any person under a written agreement of purchase and sale entered into before April 7, 2010, where both ownership and possession of the housing unit transfer under the agreement after June 2010.

It also includes a detached house, semi-detached house, row-house unit, residential condominium unit, or mobile home, in respect of which the builder is considered to have made a self-supply after June 2010 as a result of the builder giving possession or use of the unit under a written agreement entered into before April 7, 2010, for the exempt sale of the building part of the housing unit and exempt lease of the related land. (Note that this is the only situation in which a self-supply of a housing unit situated in N.S. is grandparented.)

It does not include owner-built houses, apartment buildings, or condominium complexes.

Grandparented housing unit in Prince Edward Island

For taxable sales and purchases of grandparented housing units in P.E.I., it is necessary to distinguish between and keep separate record of housing units that are grandparented for purposes of:

  • the increase to the rate of the HST from 14% to 15% (P.E.I. HST rate increase). Note that in some publications, this grandparenting situation is referred to as Prince Edward Island (1%);
  • the harmonization of the GST with the provincial sales tax (P.E.I. harmonization). Note that in some publications, this grandparenting situation is referred to as Prince Edward Island (9%); or
  • both the P.E.I. HST rate increase and P.E.I. harmonization. Note that in some publications, this grandparenting situation is referred to as Prince Edward Island (10%).

Certain types of housing may be grandparented for purposes of the P.E.I. HST rate increase, but not for purposes of the P.E.I. harmonization, and vice versa.

Grandparented housing unit for purposes of the P.E.I. HST rate increase only

A grandparented housing unit for purposes of the P.E.I. HST rate increase only means:

  • a new or substantially renovated detached house, semi-detached house, or row-house unit sold to:
    • an individual under a written agreement of purchase and sale entered into after November 8, 2012, and before June 17, 2016, where both ownership and possession of the unit transfer under the agreement after September 2016; or
    • a person other than an individual, under a written agreement of purchase and sale entered into before June 17, 2016, where both ownership and possession of the unit transfer under the agreement after September 2016;
  • a new or substantially renovated residential condominium unit sold to any person under a written agreement of purchase and sale entered into after November 8, 2012, and before June 17, 2016, where both ownership and possession of the unit transfer under the agreement after September 2016; or
  • a new or substantially renovated duplex, mobile home, or floating home sold to any person under a written agreement of purchase and sale entered into before June 17, 2016, where both ownership and possession of the unit transfer under the agreement after September 2016.

It also includes a new or substantially renovated detached house, semi-detached house, row-house unit, residential condominium unit, or mobile home in respect of which the builder is considered to have made a self-supply after September 2016 as a result of the builder giving possession or use of the unit under a written agreement entered into before June 17, 2016, for the exempt sale of the building part of the housing unit and the exempt lease of the related land. (Note that this is the only situation in which a self-supply of a housing unit situated in P.E.I. is grandparented.)

It does not include owner-built houses, apartment buildings, or condominium complexes.

If the written agreement of purchase and sale was entered into before November 9, 2012, and both ownership and possession transferred under the agreement after September 2016, the housing unit may be grandparented for purposes of both the P.E.I. HST rate increase and P.E.I. harmonization. See the upcoming section, "Grandparented housing unit" for purposes of both the P.E.I. HST rate increase and P.E.I. harmonization”, for more information.

References to Prince Edward Island (1%)

If a housing unit is grandparented for purposes of the P.E.I. HST rate increase only, this means that the provincial part of the HST at the rate of 10% would have applied to the sale but, because of the particular grandparenting situation, the provincial part of the HST applies at the rate of 9%. The reference to 1% is a reference to the difference between the rate of the provincial part of the HST that would have applied (that is, 10%) and the rate of the provincial part of the HST that did apply (that is, 9%).

Grandparented housing unit for purposes of P.E.I. harmonization only

A grandparented housing unit for purposes of P.E.I. harmonization only means a new or substantially renovated detached house, semi-detached house, or row-house unit sold to an individual, or a residential condominium unit or condominium complex sold to any person, under a written agreement of purchase and sale entered into before November 9, 2012, where both ownership and possession of the unit transfer under the agreement after March 2013 and either ownership or possession of the unit transfers before October 2016.

It does not include:

  • owner-built houses, duplexes, apartment buildings, mobile homes, or floating homes; and
  • housing units in respect of which a builder is considered to have made a self-supply.

References to Prince Edward Island (9%)

If a housing unit is grandparented for purposes of P.E.I. harmonization only, this means that the provincial part of the HST at the rate of 9% would have applied to the sale but, because of the particular grandparenting situation, the provincial part of the HST does not apply. The reference to 9% is a reference to the difference between the rate of the provincial part of the HST that would have applied (that is, 9%) and the rate of the provincial part of the HST that did apply (that is, 0%).

Grandparented housing unit for purposes of both the P.E.I. HST rate increase and P.E.I. harmonization

A grandparented housing unit for purposes of both the P.E.I. HST rate increase and P.E.I. harmonization means a new or substantially renovated detached house, semi-detached house, or row-house unit sold to an individual, or a residential condominium unit or condominium complex sold to any person, under a written agreement of purchase and sale entered into before November 9, 2012, where both ownership and possession of the housing unit transfer under the agreement after September 2016. It does not include:

  • owner-built houses, duplexes, apartment buildings, mobile homes, or floating homes; and
  • housing units in respect of which a builder is considered to have made a self-supply.

References to Prince Edward Island (10%)

If a housing unit is grandparented for purposes of both the P.E.I. HST rate increase and P.E.I. harmonization, this means that the provincial part of the HST at the rate of 10% would have applied to the sale but, because of the particular grandparenting situation, the provincial part of the HST does not apply. The reference to 10% is a reference to the difference between the rate of the provincial part of the HST that would have applied (that is, 10%) and the rate of the provincial part of the HST that did apply (that is, 0%).

Grandparented housing unit in New Brunswick

A grandparented housing unit situated in N.B. means a new or substantially renovated detached house, semi-detached house, row-house unit, residential condominium unit, duplex, mobile home, or floating home sold to any person under a written agreement of purchase and sale entered into before March 31, 2016, where both ownership and possession of the housing unit transfer under the agreement after June 2016.

It also includes a detached house, semi-detached house, row-house unit, residential condominium unit, or mobile home, in respect of which the builder is considered to have made a self-supply after June 2016 as a result of the builder giving possession or use of the unit under a written agreement entered into before March 31, 2016, for the exempt sale of the building part of the housing unit and exempt lease of the related land. (Note that this is the only situation in which a self-supply of a housing unit situated in N.B. is grandparented.)

It does not include owner-built houses, apartment buildings, or condominium complexes.

Grandparented housing unit in Newfoundland and Labrador

A grandparented housing unit situated in N.L. means a new or substantially renovated detached house, semi-detached house, row-house unit, residential condominium unit, duplex, mobile home, or floating home sold to any person under a written agreement of purchase and sale entered into before May 4, 2016, where both ownership and possession of the housing unit transfer under the agreement after June 2016.

It also includes a detached house, semi-detached house, row-house unit, residential condominium unit, or mobile home, in respect of which the builder is considered to have made a self-supply after June 2016 as a result of the builder giving possession or use of the unit under a written agreement entered into before May 4, 2016, for the exempt sale of the building part of the housing unit and exempt lease of the related land. (Note that this is the only situation in which a self-supply of a housing unit situated in N.L. is grandparented.)

It does not include owner-built houses, apartment buildings, or condominium complexes.

Penalty for not using GST/HST NETFILE

Builders who are required to use GST/HST NETFILE for reporting periods may be subject to penalties if they use another filing method (for example, GST/HST TELEFILE or paper return). A $100 penalty applies the first time a builder fails to use GST/HST NETFILE when required to do so. A $250 penalty applies each subsequent time the builder fails to use GST/HST NETFILE when required to do so.

The rest of this info sheet applies only to a builder that must use GST/HST NETFILE to file its return.

Accessing GST/HST NETFILE

There are two ways to access GST/HST NETFILE on the CRA website:

This info sheet provides instructions on how to complete the GST/HST NETFILE return and Schedules A and B to that return. The instructions are set out in four steps, as follows:

  • Step 1: General information
  • Step 2: Schedule A, Builders – transitional information
  • Step 3: Schedule B, Calculation of recaptured input tax credits
  • Step 4: GST/HST NETFILE return

For information about Schedule C, see “Schedule C, Reconciliation of recaptured input tax credits (RITCs)” later in this info sheet.

Step 1: General information

If you access GST/HST NETFILE, enter your Business Number, your four digit access code, and reporting period dates in the fields provided. Your access code can be found in Part 1 of your personalized return (GST34-2) or on the electronic filing information sheet (GST34-3) that we mailed to you. If an access code is not printed on your information sheet or return, or if you have misplaced it, you can get a new access code by:

If you access GST/HST NETFILE through My Business Account, your Business Number is automatically entered and an access code is not required. However, you have to enter your reporting period dates.

If you need help completing any of the fields on the GST/HST NETFILE return, click on the question mark in the blue circle and you will be provided with more information.

Rebates, schedules, forms, and other information included in your return

After entering your reporting period, you will see a list of tick boxes. Use these boxes to indicate whether you are including any of the listed rebate applications, schedules, forms, or other information in your return.

Rebate applications

Tick the box beside any of the following rebate applications that you are including in your return:

The relevant rebate application(s) will open for you to complete after you have completed the remainder of the general information page.

Note that the amounts of any GST/HST new housing rebates that you paid or credited to purchasers do not automatically carry forward to your GST/HST NETFILE return. To enter the total amount of the rebates that you paid or credited on your GST/HST NETFILE return, follow the instructions provided in Step 3 (if you are required to complete Schedule B); otherwise, follow the instructions in Step 4.

Schedules

Tick the box beside any of the following schedules that you are filing with your return:

  • Schedule A, Builders – transitional information
  • Schedule B, Calculation of recaptured input tax credits
  • Schedule C, Reconciliation of recaptured input tax credits (RITCs)

The relevant schedule(s) will open for you to complete after you have completed the remainder of the general information page.

Schedule A, Builders – transitional information

You have to file Schedule A to the GST/HST NETFILE return for a reporting period in which you:

  • are deducting the amount of any B.C. transition tax rebates that you are entitled to claim (if your agent is deducting the amount of any B.C. transition tax rebates that you are entitled to claim, the agent must use GST/HST NETFILE for the reporting period)Footnote 7;
  • make a taxable sale or self-supply (where applicable) of a grandparented housing unit in Ontario, N.S., P.E.I., N.B., or N.L., where:
    • the total sales price, including the consideration for any other taxable supply made to the purchaser of an interest in the grandparented housing unit is $450,000 or more or, in the case of a self-supply, the fair market value upon which you have to report the tax is $450,000 or more; and
    • the GST or federal part of the HST in respect of the sale or self-supply (where applicable) becomes payable in your reporting period that includes March 23, 2016,Footnote 8 or in any reporting period thereafter;
  • make a taxable sale or self-supply (where applicable) of a non-grandparented housing unit situated in Ontario, N.S., P.E.I., N.B., or N.L., that you had originally purchased on a grandparented basis;
  • are required to report a transitional tax adjustment on your sale of a grandparented housing unit in Ontario or P.E.I.; or
  • are reporting a P.E.I. provincial transitional new housing rebate that was assigned to you by a purchaser (Type 2 on Form RC7000-PE, Prince Edward Island Provincial Sales Tax Transitional New Housing Rebate).

If you tick the box beside “Schedule A, Builders – transitional information”, Schedule A opens for you to complete after you have completed the remainder of the general information page.

More information about the situations in which you have to complete Schedule A, and instructions for doing so, are provided in “Step 2: Schedule A, Builders – transitional information”, later in this info sheet.

Schedule B, Calculation of recaptured input tax credits

You have to file Schedule B for a reporting period if you meet the definition of a large business and you are required to recapture the provincial part of the HST that you claimed as input tax credits (ITCs) for purchases in Ontario or P.E.I. during the reporting period.

If you tick this box, Schedule B will open for you to complete after you have completed Schedule A (if applicable). Otherwise, Schedule B will open after you have completed the remainder of the general information page. Instructions to complete Schedule B are provided in “Step 3: Schedule B, Calculation of recaptured input tax credits”, later in this info sheet.

For information on RITCs and the meaning of large business, refer to:

Schedule C, Reconciliation of recaptured input tax credits (RITCs)

If you have filed Form RC4531, Election or Revocation of an Election to use the Estimation and Reconciliation Method to Report the Recapture of Input Tax Credits, and you wish to reconcile for a prior fiscal year, tick the box beside “Schedule C – Reconciliation of recaptured input tax credits”.

If you tick this box, Schedule C will open for you to complete after you have completed Schedule A and/or Schedule B (if applicable). Otherwise, Schedule C will open after you complete the remainder of the general information page.

For information on RITCs and the meaning of large business, refer to:

Instructions for completing Schedule C are not included in this info sheet. If you need assistance to complete Schedule C, click on the question mark in the blue circle beside any of the lines in Schedule C to the GST/HST NETFILE return or call us at 1-800-959-8287.

Form GST106 – Information related to foreign conventions and tour packages

This tick box is generally not relevant for builders. It may only apply if you paid or credited the amount of a rebate for a foreign convention or a tour package and you are reporting that amount on your GST/HST NETFILE return. If it is not relevant in your case, leave this box blank.

Other information

Tick the remaining tick boxes on the general information page if they apply to you.

After you have completed the general information page

After you have completed the general information page, click on the NEXT button. If you ticked any of the boxes on the general information page, the relevant rebate applications, schedules, and forms will now open for completion.

The rest of this info sheet provides step-by-step instructions on how to complete Schedules A and B, and the GST/HST NETFILE return. If you need assistance to complete the rebate applications, call us at 1-800-959-8287.

Step 2: Schedule A, Builders – transitional information

If you are not required to complete Schedule A, skip the instructions in this step and proceed to Step 3 for instructions on completing Schedule B. If you are not required to complete either Schedule A or Schedule B, go directly to Step 4, later in this info sheet, for instructions on completing your GST/HST NETFILE return, including how to report housing and other rebates on the return.

For information about Schedule C, see “Schedule C, Reconciliation of recaptured input tax credits (RITCs)” earlier in this info sheet.

At the top of Schedule A, you will see your Business Number and reporting period information displayed based on the information you provided on the general information page. Review this information to ensure it is correct.

Schedule A has four main sections:

  • B.C. transition tax and B.C. transition rebate
  • Grandparented housing
  • Calculation of line 105 – Total GST/HST and adjustments for period
  • Calculation of line 111 – Rebates

Each section is explained below.

If you do not have any information to report on Schedule A, click on the PREVIOUS button to return to the general information page, where you can remove the tick mark from the box beside “Schedule A, Builders – transitional information”.

B.C. transition tax and B.C. transition rebate

Line 705

The time period for remitting the B.C. transition tax has passed. If you have an amount to report, information on amending previously filed returns is provided later in this info sheet. If you are filing your return late, complete line 705 of Schedule A if you are required to report the 2% B.C. transition tax on:

  • the sale of newly constructed or substantially renovated housing in B.C.;
  • the sale of an interest in such housing (as mentioned in the first bullet);
  • the self-supply of such housing (as mentioned in the first bullet).Footnote 9

If your agent is required to report your B.C. transition tax, the agent must use GST/HST NETFILE to file its return for the reporting period.

Enter the total amount of the B.C. transition tax that became collectible in the reporting period.

Line 122

Complete line 122 of Schedule A if you are claiming a B.C. transition tax rebate in this return. Mail the rebate application (Form RC7004-BC, British Columbia Transition Tax Rebate) to the address shown on the form no later than the day you file this return. Enter the total amount of all B.C. transition tax rebates claimed for the reporting period.

If your agent is claiming the amount of your B.C. transition tax rebate, the agent may only do so on line 122 in its GST/HST NETFILE return for the reporting period in which the B.C. transition tax is required to be reported. If the amount of the rebate is not claimed in that return, the agent is not entitled to claim the amount on line 122 in a subsequent return. In this case, the agent would have to amend the return in which it was required to report the B.C. transition tax. Information on amending previously filed returns is provided later in this info sheet.

For more information on the B.C. transition tax rebate, refer to GST/HST Info Sheet GI-157, Elimination of the Harmonized Sales Tax in British Columbia: British Columbia Transition Rebate for Builders of New Housing.

Grandparented housing

Lines 1100 and 1101

Use lines 1100 and 1101 of Schedule A to report transitional information about your sales and self-supplies of grandparented housing units (if any) in Ontario, N.S., P.E.I., N.B., or N.L., where:

  • in the case of a:
    • sale of a grandparented housing unit, the total sales price, including the consideration for any other taxable supply made to the purchaser of an interest in the grandparented housing unit, is $450,000 or more; or
    • self-supply of a grandparented housing unit, the fair market value upon which you have to report the tax is $450,000 or more; and
  • the GST or federal part of the HST in respect of the sale or self-supply becomes payable in your reporting period that includes March 23, 2016, or in any reporting period thereafter.

If the GST or federal part of the HST becomes payable on such a sale or self-supply of a grandparented housing unit(s) in a reporting period, report the total of all of the sales prices (or in the case of a self-supply, the fair market values) of those housing units on line 1100. Then, report the total number of those housing units on line 1101.

All information reported on lines 1100 and 1101 must be reported according to the province in which the housing is located. Do not include provincial sales tax, GST/HST, or any amounts you reported on a previous return.

See “What is a ‘grandparented housing unit’?” earlier in this info sheet to determine if you have made a sale or self-supply of a grandparented housing unit.

Special situations for housing in P.E.I. – lines 1100 and 1101

You may see up to three rows displayed under lines 1100 and 1101 that are specifically for grandparented housing in P.E.I., as follows:

  • Prince Edward Island (1%)
  • Prince Edward Island (9%)
  • Prince Edward Island (10%)

The P.E.I. rows that will be displayed depend on the reporting period for which you are filing. Therefore, in some cases only one or two of the P.E.I. rows may be displayed under lines 1100 and 1101.

If you have to report transitional information on lines 1100 and 1101 about your sales and self‑supplies of grandparented housing units located in P.E.I., you have to report the total of all of the sales prices (or, in the case of a self-supply, the fair market values) of those grandparented housing units and the total number of those units in the applicable P.E.I. row according to whether your sales and self-supplies are grandparented for purposes of:

  • the P.E.I. HST rate increase only. In this case, report the applicable totals in the Prince Edward Island (1%) row.
  • P.E.I. harmonization only. In this case, report the applicable totals in the Prince Edward Island (9%) row.
  • both the P.E.I. HST rate increase and P.E.I. harmonization. In this case, report the applicable totals in the Prince Edward Island (10%) row.

Generally, for reporting periods:

  • ending before October 2016, the transitional information for lines 1100 and 1101 is comprised of the totals for sales of housing units that are grandparented for purposes of P.E.I. harmonization only, which would be reported in the Prince Edward Island (9%) row;
  • beginning after September 2016, the transitional information for lines 1100 and 1101 is comprised of the totals for sales and self-supplies (where applicable) of housing units that are grandparented for purposes of the P.E.I. HST rate increase only, which would be reported in the Prince Edward Island (1%) row, and those that are grandparented for both the P.E.I. HST rate increase and P.E.I. harmonization, which would be reported in the Prince Edward Island (10%) row; and
  • beginning before October 2016 and ending after September 2016, the transitional information for lines 1100 and 1101 is comprised of the totals for sales and self-supplies (where applicable) of housing units that are grandparented for purposes of the P.E.I. HST rate increase only, which would be reported in the Prince Edward Island (1%) row, those that are grandparented for P.E.I. harmonization only, which would be reported in the Prince Edward Island (9%) row, and those that are grandparented for both the P.E.I. HST rate increase and P.E.I. harmonization, which would be reported in the Prince Edward Island (10%) row.

See “Grandparented housing unit in Prince Edward Island” earlier in this info sheet for information on the three different situations in which a housing unit is grandparented in P.E.I.

Housing in N.B. or N.L. – lines 1100 and 1101

The requirement to report transitional information on lines 1100 and 1101 for sales or self-supplies (where applicable) of grandparented housing units in N.B. or N.L. applies to reporting periods ending after June 2016.

Sales of grandparented housing units included on lines 1100 and 1101 are also known as specified housing supplies. Different rules applied for determining whether sales and self-supplies of grandparented housing units were “specified housing supplies” where the GST or federal part of the HST became payable in a reporting period that ended before March 23, 2016.

In such a case, the type of transitional information that a builder had to report on lines 1100 and 1101 was the same as it is now. However, the builder had to report this information in respect of all of its sales of grandparented housing units where the purchaser was not entitled to claim either a GST/HST new housing rebate or a GST/HST new residential rental property rebate, regardless of the reason for the purchaser’s ineligibility.

Refer to GST/HST Notice 294, Questions and Answers on Simplified Reporting of Specified Housing Supplies, and Form RC4617, Election and Schedule to a Return for Simplified Reporting of Specified Housing Supplies, for more information.

If your GST/HST NETFILE return is for a reporting period for which you are filing an election using Form RC4617, do not include any information on lines 1100 and 1101 of Schedule A to that return. You will enter that information for the reporting period on Form RC4617 instead.

Example 1

A builder operating solely in P.E.I. files its GST/HST returns on a monthly basis using calendar months. In its reporting period ending March 31, 2017, the builder transferred ownership and possession of three grandparented housing units for purposes of the P.E.I. HST rate increase only. The total sales price for one of those sales was $650,000. The total sales price for each of the other two sales was $425,000.

The builder has to report on lines 1100 and 1101 of Schedule A the total of the sales prices and the total number of grandparented housing units it sold in the reporting period that had a sales price of $450,000 or more. As such, only the grandparented housing sale of $650,000 must be reported on lines 1100 and 1101. Since that sale is grandparented for purposes of the P.E.I. HST rate increase only, the builder must report the required amounts in the Prince Edward Island (1%) row under lines 1100 and 1101, as follows:

Lines 1100 and 1101
Province Total sales
(Line 1100)
# of Housing units
(Line 1101)
New Brunswick - -
Newfoundland and Labrador - -
Nova Scotia - -
Ontario - -
Prince Edward Island (1%) $650,000 1
Prince Edward Island (10%) - -

Lines 1102 and 1103

You have to complete both lines 1102 and 1103 if you make a taxable sale or self-supply of a housing unit in Ontario, N.S., P.E.I., N.B., or N.L that is not grandparented, and you had originally purchased the unit on a grandparented basis.

On line 1102, enter the total of the purchase prices for your original purchases of those units. On line 1103, enter the total number of the housing units for which you reported the total purchase prices on line 1102.

If the provincial part of the HST becomes payable on such a sale or self‑supply of housing that is situated in P.E.I., see “Special situations for housing in P.E.I. – lines 1102 and 1103”, later in this section.

If the provincial part of the HST becomes payable on such a sale or self-supply (at the rate of 8% in Ontario or at the rate of 10% in N.S., N.B., or N.L.) in a reporting period, report the total of the purchase prices for your purchases of these housing units on line 1102. Then, report the total number of these housing units on line 1103.

All information reported on lines 1102 and 1103 must be reported according to the province in which the housing is located. Do not include provincial sales tax, GST/HST, or any amounts you reported on a previous return.

See “What is a grandparented housing unit?” earlier in this info sheet to determine if your original purchase was grandparented.

Special situations for housing in P.E.I. – lines 1102 and 1103

You will see three rows displayed under lines 1102 and 1103 that are specifically for grandparented housing in P.E.I., as follows:

  • Prince Edward Island (1%)
  • Prince Edward Island (9%)
  • Prince Edward Island (10%)

Enter on line 1102 the total of the purchase prices you paid for housing units that you purchased on a grandparented basis where you sold that housing on a non-grandparented basis. On line 1103, enter the total number of the housing units for which you reported the total purchase prices on line 1102. Report these totals in the applicable P.E.I. row according to whether your purchases were grandparented for purposes of:

  • the P.E.I. HST rate increase only. In this case, report the applicable totals in the Prince Edward Island (1%) row.
  • P.E.I. harmonization only. In this case, report the applicable totals in the Prince Edward Island (9%) row.
  • both the P.E.I. HST rate increase and P.E.I. harmonization. In this case, report the applicable totals in the Prince Edward Island (10%) row.

See “Grandparented housing unit in Prince Edward Island” earlier in this info sheet to find out if any of the three grandparented housing situations applied to your purchase of a housing unit.

Example 2

Builder A files its GST/HST returns on a monthly basis using calendar months. For the reporting period ending March 31, 2017, Builder A had three sales of housing in P.E.I. for which ownership and possession transferred to the purchasers during the reporting period. These included:

  • Sale #1, which was the sale of a grandparented housing unit for purposes of both the P.E.I HST rate increase and P.E.I. harmonization. The total sales price was $700,000;
  • Sale #2, which was the sale of a non-grandparented housing unit that the builder had constructed. The total sales price was $550,000; and
  • Sale #3, which was the sale of a non-grandparented housing unit that Builder A had originally purchased on a grandparented basis (for purposes of the P.E.I. HST rate increase only) from Builder B. (That is, Builder B’s sale to Builder A was that of a grandparented housing unit for purposes of the P.E.I. HST rate increase only.) Builder A paid a total purchase price of $450,000 on its purchase of this grandparented housing unit from Builder B. The total sales price for Builder A’s subsequent non-grandparented sale of the housing unit was $500,000.

In its GST/HST NETFILE return for that reporting period, the builder must report the following under “Grandparented housing” in Schedule A:

Lines 1100 and 1101
Province Total sales
(Line 1100)
# of Housing units
(Line 1101)
New Brunswick - -
Newfoundland and Labrador - -
Nova Scotia - -
Ontario - -
Prince Edward Island (1%) - -
Prince Edward Island (10%) $700,000 1
Lines 1102 and 1103
Province Total original purchases
(Line 1102)
# of Housing units
(Line 1103)
New Brunswick - -
Newfoundland and Labrador - -
Nova Scotia - -
Ontario - -
Prince Edward Island (1%) $450,000* 1
Prince Edward Island (9%) - -
Prince Edward Island (10%) - -

* Purchase price paid by Builder A on its purchase from Builder B of the grandparented housing unit for purposes of the P.E.I. HST rate increase only (that Builder A subsequently sold on a non-grandparented basis).

Builder A is not required to report information about Sale #2 under “Grandparented housing” in Schedule A because that sale was not grandparented and the housing unit sold was not purchased by Builder A on a grandparented basis.

Penalty for misreporting or not reporting details on lines 1100, 1101, 1102, or 1103

Significant penalties may be assessed if any information that is required to be reported on lines 1100, 1101, 1102, and 1103 of Schedule A is not reported, or is misreported.

The penalty that may apply for failing to report, or for misreporting, information on line 1100 and/or line 1102, as required, would be up to 10% of:

  • the total amount of the sales prices that are not reported as required on line 1100; and
  • the total amount of the purchase prices that are not reported as required on line 1102.

A penalty of $250 may be assessed for each failure to correctly report the number of housing units, as required, on line 1101 and/or line 1103.

Example 3

Continuing from Example 2, if Builder A did not report any information on lines 1100, 1101, 1102, and 1103 of Schedule A for the reporting period, as required, a penalty of up to $115,500 may be assessed, calculated as the total of the following:

  • $115,000 ($1,150,000 × 10%) for not reporting the total sales price on line 1100 and the total purchase price on line 1102; and
  • $500 ($250 × 2 occasions) for not reporting the number of the housing units on line 1101 and line 1103.

Calculation of line 105 – Total GST/HST and adjustments for period

This part of Schedule A is used to calculate the total GST/HST that you were required to collect during the reporting period, as well as any transitional tax adjustments you, as a builder, are considered to have collected (even though not actually collected from anyone).

Line 1200

Enter on line 1200 of Schedule A the total of all amounts you would otherwise report on line 105 of your GST/HST return (that is, if you were not required to use Schedule A), namely:

  • all of the GST/HST that you collected, or that became collectible by you, during the reporting period, and
  • any adjustments you have to make to increase the amount of your net tax for the reporting period (for example, if you wrote off the GST/HST amount of any bad debts in a previous return and then recovered some or all of those debts in your current reporting period, add the amount of the GST/HST you have recovered).

Do not include any GST/HST payable on a taxable sale of real property if you are not required to collect the tax payable. For more information, see Guide RC4022, General Information for GST/HST Registrants.

Do not include any transitional tax adjustment information on line 1200. That information must go on line 1201, Transitional tax adjustment, of Schedule A.

Line 1201

Enter on line 1201 the amount of the transitional tax adjustment in respect of grandparented housing units in Ontario and P.E.I. This amount must be reported on a province-by-province basis.

Housing in P.E.I.

The transitional tax adjustment, and therefore line 1201, may apply if you sold a housing unit that was grandparented for purposes of:

  • P.E.I. harmonization only; or
  • both the P.E.I. HST rate increase and P.E.I. harmonization.

The transitional tax adjustment, and therefore line 1201, do not apply to housing units that are grandparented for purposes of the P.E.I. HST rate increase only.

Example 4

A builder made two taxable sales of real property in Ontario in its current reporting period.

  • The first is the sale of a non-grandparented housing unit for $550,000, on which the builder is required to charge and collect the HST ($71,500).
  • The second is the sale of a grandparented residential condominium unit for $300,000 on which the builder is required to charge and collect the GST ($15,000). Since it is a grandparented sale, the builder is also considered to have collected $6,000 ($300,000 × 2%) as a transitional tax adjustment.

The builder is required to report the following on Schedule A of its GST/HST NETFILE return for the reporting period:

  • $86,500 ($71,500 + $15,000) on line 1200, which is the total GST/HST collectible by the builder on the two sales; and
  • $6,000 (the amount of the transitional tax adjustment for the builder’s sale of the grandparented residential condominium unit) on line 1201 in the information field for Ontario.

After you have completed the remainder of Schedule A and click on the CALCULATE button, Line 105, Total GST/HST and adjustments for period, of your GST/HST NETFILE return will be filled in automatically based on the information you entered on lines 1200 and 1201 in Schedule A.

Penalty for misreporting or not reporting the transitional tax adjustment on line 1201

If you fail to report, or you misreport, a transitional tax adjustment on line 1201, you may be subject to a penalty of up to 10% of the amount of any unreported or misreported transitional tax adjustments.

Example 5

The builder in Example 4 mistakenly reported the transitional tax adjustment on line 1200, together with the GST/HST the builder was required to collect, instead of reporting it on line 1201 as required.

The maximum penalty to the builder for misreporting the transitional tax adjustment is $600 ($6,000 × 10%).

Calculation of line 111 – Rebates

This part of Schedule A contains up to five lines. You can enter amounts on lines 1300 and 1301 only. Amounts reported on lines 1300 and 1301 are automatically included on line 111 of your GST/HST return and used to reduce your amount owing.

Do not include on line 1300 or 1301 of Schedule A or line 111 of the GST/HST NETFILE return, the amounts of any GST/HST new housing rebates that you paid or credited to purchasers. These amounts must be reported on lines 135 and 108 of your GST/HST NETFILE return or, if you are required to complete Schedule B, on line 1400 of Schedule B and line 135 of your return.

If you ticked the box(es) on the general information page in Step 1 to indicate that you are filing a rebate in respect of the Ontario First Nations point-of-sale relief that you credited or a GST/HST public service bodies’ rebate, and you completed the relevant rebate application(s) that opened for your completion after the general information page, line 23Footnote 10 and line 409Footnote 11 are displayed and filled in automatically.

The Appendix to this info sheet provides a chart that highlights various housing rebate applications and rebate types, together with the corresponding lines for reporting these rebate amounts on your GST/HST NETFILE return.

Line 1300

Enter on line 1300 the total amount of the P.E.I. provincial transitional new housing rebates, if any, that were assigned to you (Type 2 only) by purchasers on Form RC7000‑PE, and that you will use to reduce the amount owing on your GST/HST NETFILE return.

Amounts reported on line 1300 are automatically included on line 111 of your GST/HST NETFILE return.

You must send the rebate application to the Prince Edward Island Tax Centre no later than the day you file your GST/HST NETFILE return.

Do not include on line 1300 any P.E.I. provincial transitional new housing rebates that you are entitled to claim as the builder of new housing (for example, in respect of a residential condominium unit or in respect of a self-supply). Include such rebates on line 1301. (That is, the only P.E.I. provincial transitional new housing rebates reported on line 1300 should be those that were assigned to you by purchasers.)

Line 1301

Enter on line 1301 the total amount of the P.E.I. provincial transitional new housing rebates that you, as the builder, are entitled to claim on the following forms:

Report these rebate amounts on line 1301 only if you use the amounts to reduce your amount owing for the reporting period.

You can also include on line 1301 certain other rebates that you are entitled to claim, such as GST/HST new residential rental property rebates and rebates for tax paid in error.

Do not include on line 1301 any amounts that you:

  • paid or credited to purchasers in respect of GST/HST new housing rebates (these amounts must be reported on lines 135 and 108 of your GST/HST NETFILE return or, if you are required to complete Schedule B, on line 1400 of Schedule B and line 135 of your return); or
  • credited at the point of sale in respect of the Ontario First Nations point-of-sale relief or any public service bodies’ rebate amount that you are entitled to claim.

If you enter the amount of a rebate(s) on line 1300 or 1301 of your GST/HST NETFILE return, you must send the corresponding rebate application to the Prince Edward Island Tax Centre no later than the day you file your GST/HST NETFILE return.

Line 111

Line 111, Total rebates, is automatically filled in when you click on the CALCULATE button after completing Schedule A.

After clicking on the CALCULATE button, ensure that the information in all of the fields is correct. If so, click the NEXT button. If you ticked the box beside “Schedule B – Calculation of recaptured input tax credits”, in Step 1, you will proceed to Schedule B. Information for completing Schedule B is provided under Step 3 of this info sheet.

If you did not tick that box, you will proceed to either Schedule C, if applicable, or your GST/HST NETFILE return. If you need information about Schedule C, see “Schedule C, Reconciliation of recaptured input tax credits (RITCs)” earlier in this info sheet. Instructions for completing your GST/HST NETFILE return are provided under Step 4 of this info sheet.

Consequences for improperly reporting rebates on line 1300 or line 1301

If you do not correctly report amounts on line 1300 or line 1301 of Schedule A, you will be required to repay, with interest, any overpayment that results from filing your GST/HST NETFILE return with incomplete or incorrect information.

In addition, you may be subject to a penalty of $250 each time that you deduct the amount of a P.E.I. provincial transitional new housing rebate that was assigned to you by a purchaser in calculating your net tax, without also reporting the rebate amount on line 1300. A penalty may be assessed in this case even if the amount is included on line 111 and you send the corresponding rebate applications to the CRA, as required.

You may also be assessed for the rebate amounts, with interest, where these amounts are mistakenly included on line 108 of the return, if you do not provide the rebate applications to the CRA at the time of audit.

Amounts that are assessed for GST/HST purposes may affect other accounts that you have with the CRA, as debits on a GST/HST account will be offset by credits that you may have on other CRA accounts.

Example 6

The purchaser of a new house in P.E.I. agrees to assign their P.E.I. provincial transitional new housing rebate to the builder, and completes Form RC7000-PE accordingly. The builder intends to use this rebate amount to reduce the amount owing on its GST/HST return and sends Form RC7000-PE to the CRA on the same day as the builder files its GST/HST NETFILE return. However, the builder mistakenly includes the P.E.I. provincial transitional new housing rebate amount on line 108 instead of on line 1300.

This improper reporting may result in an overpayment to the builder. The builder will be required to repay the overpayment amount, including any applicable interest. The builder may also be subject to a $250 penalty for reporting the rebate amount incorrectly.

You may also be subject to a $250 penalty each time that you deduct an amount for any of your own P.E.I. provincial transitional new housing rebates in calculating your net tax if you fail to report the rebate amount on line 1301 – even if the amount is included on line 111 and the corresponding rebate applications are submitted to the CRA as required.

You may also be subject to a penalty of $250 each time that you improperly include, on line 1300 or line 1301, the amount of a GST/HST new housing rebate that you paid or credited to a purchaser. These amounts must be reported on lines 135 and 108 of your GST/HST NETFILE return or, if you are required to complete Schedule B, on line 1400 of Schedule B and line 135 of your GST/HST NETFILE return.

Step 3: Schedule B, Calculation of recaptured input tax credits

If you are required to complete Schedule B but it is not presented, click on the PREVIOUS button until you reach the general information page from Step 1. Make sure to tick the box beside “Schedule B – Calculation of recaptured input tax credits”. Review to make sure you have ticked all applicable boxes and entered any required information on the general information page and press the NEXT button.  If you had already entered information in Schedule A, you will have to re-enter it.

If Schedule B is presented and you do not have any information to report on it, click on the PREVIOUS button until you reach the general information page from Step 1, where you can remove the tick mark from the tick box beside “Schedule B – Calculation of recaptured input tax credits”. If you had already entered information in Schedule A, you will have to re-enter it.

If Schedule B does not apply to you, you will proceed to either Schedule C, if applicable, or your GST/HST NETFILE return. For information about Schedule C, see “Schedule C, Reconciliation of recaptured input tax credits (RITCs)” earlier in this info sheet. Instructions for completing your GST/HST NETFILE return are provided in Step 4, later in this info sheet.

Line 1400

Use line 1400 to report all of your eligible ITCs for the reporting period, including any ITCs that are subject to recapture.

Enter the total of all ITCs you are claiming for the reporting period, as well as any eligible ITCs you did not claim in an earlier reporting period, provided the time limit for claiming the ITCs has not expired.

You may also include on line 1400 any adjustments that you want to apply to decrease the amount of your net tax for the reporting period. For example, you may include:

  • the amount of a GST/HST new housing rebate that you paid or credited to an eligible purchaser in that reporting period. You may include such an amount on line 1400 if you send the purchaser’s new housing rebate application electronically or by mail, on or before the day you file your GST/HST NETFILE return. You must also enter the total amount of the new housing rebates that you paid or credited in the reporting period on line 135 of your GST/HST NETFILE return. For more information, see “Failure to submit new housing rebate applications for amounts paid or credited to purchasers”, later in this info sheet; and
  • the amount of any GST/HST on bad debts you wrote off in that reporting period if you have previously reported the full amount of the GST/HST on your supplies that resulted in those debts, and you have remitted any net tax owing on those supplies.

Example 7

Build Co. is a large business that is subject to the RITC rules and is therefore required to complete Schedule B for the current reporting period. During this reporting period, Build Co. is liable to pay $3,400 in GST/HST on its own eligible expenses, and it credited $76,400 in GST/HST new housing rebates to purchasers of new housing.

Build Co. is eligible to claim $79,800 ($76,400 + $3,400) on line 1400. Build Co. must also remember to report $76,400 on line 135 of its GST/HST NETFILE return.

Lines 1401 and 1402

Use line 1401, Gross RITCs, to report the amount of ITCs that are subject to recapture. Line 1401 is automatically multiplied by the appropriate recapture rate and the result is displayed on line 1402.

Ontario

The rate of ITC recapture is 100% for the first five years that the HST was in effect in Ontario and then will be phased out by reducing the rate of recapture in equal increments over the following three years. The recapture rates for Ontario are:

  • 100% for the period from July 1, 2010 to June 30, 2015
  • 75% for the period from July 1, 2015 to June 30, 2016
  • 50% for the period from July 1, 2016 to June 30, 2017
  • 25% for the period from July 1, 2017 to June 30, 2018
  • 0% on or after July 1, 2018

Prince Edward Island

The rate of ITC recapture is 100% for the first five years that the HST is in effect in P.E.I. and will be phased out by reducing the rate of recapture in equal increments over the following three years. The recapture rates for P.E.I. are:

  • 100% for the period from April 1, 2013 to March 31, 2018
  • 75% for the period from April 1, 2018 to March 31, 2019
  • 50% for the period from April 1, 2019 to March 31, 2020
  • 25% for the period from April 1, 2020 to March 31, 2021
  • 0% on or after April 1, 2021

Line 1403

Use line 1403, RITC adjustment in respect of a qualifying motor vehicle, only if, in this reporting period, you sold or removed a qualifying motor vehicle from Ontario or P.E.I. for which you previously added an RITC amount and are now entitled to recover a portion of that RITC. Enter the amount of the allowable deduction in this field.

For more information about RITCs refer to:

Line 108

Line 108 is filled in automatically when you click on the CALCULATE button at the bottom of Schedule B, based on the information you provided for lines 1400, 1401, and 1403. This is the amount of allowable ITCs and adjustments that is reported on line 108 of your GST/HST NETFILE return.

After clicking the CALCULATE button, ensure that the information in all of the fields is correct. If so, click the NEXT button. If you ticked the box beside “Schedule C – Reconciliation of recaptured input tax credits”, in Step 1, you will proceed to Schedule C. If you did not, you will proceed to your GST/HST NETFILE return.

For information about Schedule C, see “Schedule C, Reconciliation of recaptured input tax credits (RITCs)” earlier in this info sheet. Information for completing your GST/HST NETFILE return is provided in Step 4 of this info sheet.

Failure to submit new housing rebate applications for amounts paid or credited to purchasers

If you paid or credited GST/HST new housing rebates to purchasers in a reporting period, you have to send the purchasers’ rebate applications to the CRA.

You may send the purchasers’ new housing rebate applications electronically together with your GST/HST NETFILE return or you may submit paper copies of the rebate applications to the CRA. If you send the rebate applications electronically, do not submit paper copies of the new housing rebate application Form GST190 and/or RC7190-BC, GST190 British Columbia Rebate Schedule, or RC7190-ON, GST190 Ontario Rebate Schedule. In any case, send the purchasers’ rebate applications no later than the day you file your return.

If you overlooked a rebate application when filing the applicable return, you can send the rebate application separately from the return. To do this, log in to My Business Account and use the “File a rebate” option.

You may be assessed an amount, with interest calculated from the due date of the return, for rebate applications in respect of rebate amounts that you have paid or credited to purchasers if you have not sent (electronically or otherwise) the purchasers’ rebate applications to the CRA and you have claimed the amounts of these rebates on your GST/HST NETFILE return. The amount of the assessment is generally the lesser of the amount of the rebates reported on line 135 (see Step 4) or the amount claimed on line 108.

Amounts that are assessed for GST/HST purposes may affect other accounts with the CRA since debits on a GST/HST account are offset by credits that you may have on other CRA accounts.

Penalty for not reporting RITCs on line 1401

If you fail to report on line 1401 the ITCs that are subject to recapture, you may be subject to a penalty of up to 10% of the amounts not reported.

Example 8

Build Co. is a GST/HST registrant that is a large business for the recapture period of July 1, 2016, to June 30, 2017, during which the recapture rate of 50% applies. On December 11, 2016, Build Co. bought a road vehicle (weighing less than 3,000 kilograms) for $28,000 that it intends to use in its business in Ontario. HST of $3,640 became payable on the purchase on December 11, 2016, and Build Co. paid the tax on that day.

Build Co. is eligible to claim a full ITC of $3,640 and does so by reporting this amount on line 1400 of Schedule B to its GST/HST NETFILE return for its reporting period that includes December 11, 2016. However, the vehicle is a specified road vehicle for RITC purposes because it was acquired by a large business for use in Ontario. Therefore, Build Co. must report RITCs for the provincial part of the HST it paid on the vehicle.

To do this, Build Co. must enter $2,240 (that is, the total provincial part of the HST it paid on the purchase of the vehicle, calculated as $3,640 × 8/13) next to the 50% recapture rate in the field for Ontario under line 1401 of Schedule B to the same return in which it took the related ITC.

Instead, however, Build Co. erroneously reported $1,400 ($3,640 – $2,240) on line 1400.

As a result, Build Co. may be subject to a penalty of up to $224 ($2,240 × 10%).

If all of the information you entered on Schedule B is correct, click on the NEXT button. If you ticked the box beside Schedule C in Step 1, you will proceed to Schedule C. For information about Schedule C, see “Schedule C, Reconciliation of recaptured input tax credits (RITCs)” earlier in this info sheet. If you did not tick the box beside Schedule C in Step 1, you will proceed to your GST/HST NETFILE return.

Step 4: GST/HST NETFILE return

You will note that, depending on which lines you completed on Schedule A, Schedule B and certain other forms, some of the lines on your GST/HST return will have been filled in automatically.

Line 101

Enter the total amount of revenue from your supplies of housing, goods, and services, including zero-rated supplies and other revenue for the reporting period. Do not include provincial sales tax, GST/HST, or any amounts you reported on a previous return. Round off the amount to the nearest dollar.

Line 135

You have to complete line 135 if, in the reporting period, you paid or credited to an eligible purchaser the amount of a GST/HST new housing rebate claimed on Form GST190 or on any of the following forms:

Report on line 135 the total amount of those GST/HST new housing rebates that you paid or credited to purchasers (even though you may have included the amount on line 1400 if you were required to complete Schedule B).

You have to send the purchasers’ new housing rebate applications electronically on or before the day you file your GST/HST NETFILE return. If you send the rebate applications electronically, do not submit paper copies of the rebate application Form GST190 and/or Form RC7190‑BC or RC7190‑ON. For more information, see “Failure to submit new housing rebate applications for amounts paid or credited to purchasers”, earlier in this info sheet.

If you overlooked a rebate application when filing the applicable return, you can send the rebate application separately from the return. To do this, log in to My Business Account and use the “File a rebate” option.

Do not include any P.E.I. provincial transitional new housing rebates claimed on Forms RC7000-PE, RC7001‑PE, or RC7002‑PE that you are entitled to claim as a builder or that were assigned to you by eligible purchasers. Those amounts must be reported on Schedule A, as discussed in Step 2 of this info sheet.

The Appendix to this info sheet provides a chart that highlights various housing rebate applications and rebate types together with the corresponding lines for reporting these rebate amounts on your GST/HST NETFILE return.

Failure to report on line 135 – where rebate applications sent to the CRA

You may be subject to a penalty of $250 each time that you fail to include, on line 135, the correct amount of a GST/HST new housing rebate that you paid or credited to a purchaser, even if the amount is included on line 1400 of Schedule B and line 108 of your GST/HST NETFILE return and you send (either electronically or by submitting paper copies) the corresponding rebate applications to the CRA, as required.

Failure to report on line 135 – where rebate applications not sent to the CRA

If you enter the total amount of the GST/HST new housing rebate amounts you paid or credited to purchasers on line 1400 of Schedule B and line 108 of your GST/HST NETFILE return, but you do not report the amounts on line 135 and you do not send (electronically or otherwise) the corresponding rebate applications to the CRA, as required, you may be subject to a penalty of up to 10% of the total rebate amount. You may also be assessed for the amount of the rebates claimed on line 108, with interest, calculated from the date the return was due if the rebate applications are not provided at the time of the audit.

Rebates paid or credited are correctly reported – but rebate applications not sent to the CRA

If you correctly report the amounts of GST/HST new housing rebates that you paid or credited to purchasers, but you do not send (electronically or otherwise) the corresponding rebate applications to the CRA, you may be assessed. The amount assessed would generally be the lesser of the amount of the rebates reported on line 135 or the total amount claimed on line 108. Interest would also generally apply, calculated from the date the GST/HST NETFILE return was due.

Amounts that are assessed for GST/HST purposes may affect other accounts that you have with the CRA, since debits on a GST/HST account are offset by credits that you may have on other CRA accounts.

Line 105

If you were required to complete Schedule A, this line is already filled in based on the information you entered on lines 1200 and 1201 of Schedule A.

If this line is not already filled in because you are not required to complete Schedule A, enter the total amount of:

  • all the GST/HST that you collected, or that became collectible by you, during the reporting period; and
  • any adjustments you have to make to increase the amount of your net tax for that reporting period (for example, if you wrote off the GST/HST amount of any bad debts on a previous return and then recovered some or all of those debts in your current reporting period, add the amount of the GST/HST you have recovered).

Do not include any GST/HST payable on a taxable sale of real property if you are not required to collect the tax payable. For more information, see Guide RC4022.

Line 108

If you were required to complete Schedule B, this line is already filled in based on the information you entered on lines 1400, 1401, and 1403 of Schedule B.

If this line is not already filled in because you are not required to complete Schedule B, enter on line 108 the total of all ITCs for the reporting period, as well as any ITCs you did not claim in an earlier reporting period, provided the time limit for claiming the ITCs has not expired.

If you have adjustments that you wish to use to decrease the amount of your net tax for the reporting period, you may also include them on line 108. For example, you can include:

  • the amount of a GST/HST new housing rebate that you paid or credited to an eligible purchaser in that reporting period. You may include such an amount on line 108 if you send the purchaser’s new housing rebate application electronically or by mail on or before the day you file your GST/HST NETFILE return. You must also enter the total amount of the new housing rebates that you paid or credited in the reporting period on line 135 of your GST/HST NETFILE return. For more information, see “Failure to submit new housing rebate applications for amounts paid or credited to purchasers”, earlier in this info sheet; and
  • the amount of any GST/HST on bad debts you write off in that reporting period if you have previously reported the full amount of the GST/HST on your supplies that resulted in those debts, and you have remitted any net tax owing on those supplies.

Line 109

You cannot enter anything on this line. Your net tax is filled in automatically, based on the information you have provided, when you click on the CALCULATE button at the end of the return.

Line 110

If you are an annual filer and are required to make quarterly instalments in addition to your remittance at the end of your fiscal year, enter the total amount of the quarterly instalments (if applicable) that you have paid to date in your current fiscal year.

Line 111

If you were required to complete Schedule A, line 111 is filled in automatically based on the information you already provided on lines 1300 and 1301.

If you are not required to complete Schedule A, you may now reduce your amount owing by entering on line 111 the value of certain rebates that you are entitled to claim, including:

  • GST/HST new residential rental property rebates; and
  • rebates for tax paid in error.

Do not report any of the following on line 111:

  • amounts that you paid or credited to purchasers in respect of GST/HST new housing rebates. These amounts must be entered on line 135 and line 108 or, if you are required to complete Schedule B, on line 1400 of Schedule B and line 135 of your GST/HST NETFILE return. You must send the applicable rebate application no later than the day you electronically file your return;
  • amounts you credited at the point of sale in respect of the Ontario First Nations point‑of‑sale relief; or
  • amounts of public service bodies’ rebates that you are entitled to claim.

Any amounts you credited at the point of sale in respect of the Ontario First Nations point‑of‑sale relief or any public service bodies’ rebate amount that you are entitled to claim are automatically entered on line 111 if you ticked the box beside the respective rebate application in Step 1 and completed the relevant rebate applications that were presented after you completed the general information page.

Consequences of using line 111 to report new housing rebates paid or credited to purchasers

If you report the amounts of GST/HST new housing rebates that you paid or credited to purchasers on line 111 instead of lines 108 and 135, you will be assessed, even if you provided the CRA with the rebate applications when your return was filed.

If you record amounts on line 111, the CRA is expecting to receive certain types of rebate applications (for example, a P.E.I. provincial transitional new housing rebate or a rebate for tax paid in error) other than GST/HST new housing rebate applications related to rebate amounts you paid or credited to purchasers.

If the expected rebate applications are not received by the CRA, a notice of assessment is generated. The assessment will include the rebate amount reported on line 111, with interest. If you receive such an assessment, you can contact the CRA to request an adjustment to lines 108 and 135 of the return.

In this situation, you may be subject to the penalty of $250 for each time that you fail to correctly report a rebate amount on line 135, as indicated above.

Amounts that are assessed for GST/HST purposes may affect other accounts that you have with the CRA, since debits on a GST/HST account are offset by credits that you may have on other CRA accounts.

Consequences for not reporting eligible rebates on line 111

If you use a rebate amount to reduce the amount owing on your GST/HST return, but you do not correctly report the rebate amount on line 111, you will be required to repay any overpayment, with interest, that results from filing your return with incomplete or incorrect information. You may be required to repay such amounts even if you submit the required rebate application to the CRA.

Line 122

If you reported a B.C. transition tax rebate on Schedule A, this line is automatically filled in based on the information you entered on line 122 of Schedule A.

Line 205

Enter on line 205 the amount of the GST/HST due on your taxable purchase of real property during the reporting period if:

  • the real property is for use or supply more than 50% in the course of your commercial activities; and
  • you, as the purchaser, are required to pay the tax on your purchase directly to the CRA (and not to the supplier of the real property). See “Who remits the tax for a taxable sale of real property – Vendor or purchaser?” in Guide RC4022.

If you purchased the real property for use or supply 50% or less in your commercial activities, do not include the amount of GST/HST you are required to pay in respect of your purchase on your GST/HST NETFILE return. In such a case, use Form GST60, GST/HST Return for Acquisition of Real Property, to report the amount that you are required to pay to the CRA in respect of your taxable purchase of the real property.

Line 405

Complete this line if:

  • you have to self-assess the provincial part of the HST on property or services brought into a participating province, or
  • you import a taxable supply for consumption, use, or supply less than 90% in your commercial activities and you have to self-assess the GST/HST.

Enter on this line the total amount of the GST/HST or the provincial part of the HST due on the property or services that you imported or brought into a participating province. For more information, see Guide RC4022.

Line 705

If you reported the B.C. transition tax on Schedule A, this line is automatically filled in based on the information you entered on line 705 of Schedule A.

Lines 109, 114, and 115

Click on the CALCULATE button. Line 109 (Net Tax) is now populated, as is line 114 (Refund claimed) or line 115 (Amount owing), based on the information you have provided in the schedules, forms and return.

Review all of the information on your return to make sure it is correct. If you have an amount owing, tick the relevant box below the CALCULATE button to indicate when you will make your payment. Then certify the information given in the return by ticking the box beside the certification statement and click the SUBMIT button to file your return.

After you submit your return, you are brought to the confirmation page, which provides you with your confirmation number, as well as a line-by-line breakdown of your return information. Be sure to print a copy of this screen to keep on file with your records.

When filing a return with an amount owing, you must make your payment by the due date. For information on making a payment, visit the CRA website at the Make a payment to the Canada Revenue Agency page.

Amending a previously filed return or rebate

Do not file another return if, after submitting your GST/HST NETFILE return, you discover that you failed to report information as required.

Instead, you can amend the previously filed return (including Schedules A, B and C) to report missed transitional housing information, increase the amount of the GST/HST charged or collected, or correct the amount of RITCs. To do this, log in to My Business Account and use the “Adjust a return” option.

Currently, the only rebate application that can be amended electronically is the one for public service bodies. For information on how to do this, visit our website at canada.ca/gst-hst-netfile and click on “Adjust a return or rebate”.

To adjust any other rebate that was previously filed, or if you do not wish to adjust your return via My Business Account, send a letter to your designated tax centre. Your letter must indicate your Business Number and the details relating to the rebate application or GST/HST return to be amended, such as the GST/HST reporting period, and the corrected amounts, by line number of the return or rebate. Make sure an authorized person signs the letter and include the name and telephone number of someone we can contact if needed.

If you forgot to include in your GST/HST return ITCs that are not subject to the recapture rules, add the omitted amount on line 108 of your next GST/HST return (or line 1400 if you are required to complete Schedule B of the GST/HST NETFILE return for that period) if the time limit for claiming the ITCs has not expired. In most cases, you have up to four years to claim ITCs. For more information, see the section “Input tax credits” in Guide RC4022.

Appendix – Housing rebates filed by builder

New Housing Rebates
Form Rebate type Claimant Filed by Reported on
GST 190
RC7190-BC
RC7190-ON
Types 1A or 1B Purchaser Builder, if the builder pays or credits the rebate amount
  • Line 135 of your GST/HST return; and
    • Line 1400 of Schedule B if you are required to complete this schedule; or
    • Line 108 of your GST/HST return if you are not required to complete Schedule B
New Residential Rental Property Rebates
Form Rebate type Claimant Filed by Reported on

GST524
GST525
RC7524‑BC

RC7524‑ON
N/A Builder * Builder *
  • Line 1301 of Schedule A if you are required to complete this schedule; or
  • Line 111 of your GST/HST return if you are not required to complete Schedule A

* Where the claimant has made a self-supply of the housing.

Transitional New Housing RebatesFootnote 12
Form Rebate type Claimant Filed by Reported on

RC7000-PE

Type 1* Builder Builder
  • Line 1301 of Schedule A if you are required to complete this schedule; or
  • Line 111 of your GST/HST return if you are not required to complete Schedule A

RC7000-PE

Type 2 Purchaser Builder, if the purchaser completes Section G and assigns the rebate amount to the builder
  • Line 1300 of Schedule A

RC7001-PE

Condominiums * Builder Builder
  • Line 1301 of Schedule A if you are required to complete this schedule; or
  • Line 111 of your GST/HST return if you are not required to complete Schedule A

RC7002-PE

Apartments * Builder Builder
  • Line 1301 of Schedule A if you are required to complete this schedule; or
  • Line 111 of your GST/HST return if you are not required to complete Schedule A

* If you want to use the amount of the rebates to reduce your net tax for the reporting period, follow the instructions in the last column.

Further information

All GST/HST technical publications are available at Technical information – GST/HST.

To make a GST/HST enquiry by telephone:

  • for GST/HST general enquiries, call Business Enquiries at 1-800-959-5525;
  • for GST/HST technical enquiries, call GST/HST Rulings at 1-800-959-8287.

If you are located in Quebec, call Revenu Québec at 1-800-567-4692 or visit their website at revenuquebec.ca.

If you are a selected listed financial institution (whether or not you are located in Quebec) and require information on the GST/HST or the QST, go to GST/HST and QST - Financial institutions, including selected listed financial institutions or

  • for general GST/HST or QST enquiries, call Business Enquiries at 1-800-959-5525;
  • for technical GST/HST or QST enquiries, call GST/HST Rulings SLFI at 1-855-666-5166.
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