GST/HST new housing rebate


Eligibility for the GST/HST new housing rebate

You may be eligible for a new housing rebate for some of the GST/HST paid if you are an individual who:

  • purchased new or substantially renovated housing from a builder, including housing on leased land (if the lease is for at least 20 years or gives you the option to buy the land) for use as your (or your relation’s) primary place of residence
  • purchased shares in a co-operative housing corporation (co-op) for the purpose of using a unit in a new or substantially renovated cooperative housing complex for use as your (or your relation’s) primary place of residence
  • constructed or substantially renovated your own home or hired someone else to construct or substantially renovate your home for use as your (or your relation’s) primary place of residence, if the fair market value of the house when the construction is substantially completed is less than $450,000

If you are an individual who purchased a new or substantially renovated mobile home (including a modular home) or a new or substantially renovated floating home for use as your (or your relation’s) primary place of residence, you may be eligible for a new housing rebate for some of the GST/HST paid. In addition, for the purposes of claiming the GST/HST new housing rebate, you may have the option to treat the home as being purchased from a builder or as being an owner-built house.

For more information, see Guide RC4028, GST/HST New Housing Rebate.

GST/HST new housing rebates you can claim

The GST/HST new housing rebate allows an individual to recover some of the GST or the federal part of the HST paid for a new or substantially renovated house that is for use as the individual's, or their relation's, primary place of residence, when all of the other conditions are met. In addition, other provincial new housing rebates may be available for the provincial part of the HST whether or not the GST/HST new housing rebate for the federal part of the HST is available.

The new housing rebate is not available to a corporation or a partnership.

Houses purchased from a builder

Owner-built houses

You may be eligible to claim a GST/HST new housing rebate for a house purchased from a builder for use as your (or your relation’s) primary place of residence if you are an individual and find yourself in one of the following situations:

  • You purchased a new or substantially renovated house (building and land) from a builder.
  • You purchased a new or substantially renovated mobile or floating home from a builder (this includes the manufacturer or vendor).
  • You purchased a share of the capital stock of a cooperative housing corporation (co-op) where the co-op paid tax on a new or substantially renovated house.
  • You purchased a new or substantially renovated house from a builder where you leased the land from that builder under the same agreement to buy the house, and the lease is for 20 years or more or gives you the option to buy the land.

If you are eligible, use the following forms to apply for a rebate for houses purchased from a builder:

Send the appropriate forms or file your rebate application online using My Business Account, Represent a Client or GST/HST NETFILE (for types 1A and 1B), and My Account for Individuals (for types 2, 3 and 5).

Note

For houses located in Ontario, you may be eligible to claim the Ontario new housing rebate if you are not eligible to claim the new housing rebate for some of the federal part of the HST only because the fair market value of the housing exceeds $450,000. An Ontario new housing rebate will be available (up to the applicable maximum of $24,000), regardless of the fair market value, as long as all of the other conditions for claiming the rebate are met. For more information, see Guide RC4028, GST/HST New Housing Rebate.

Owner-built houses 

Owner-built houses 

You may be eligible to claim a GST/HST new housing rebate for an owner-built house for use as your (or your relation’s) primary place of residence if you are an individual and one of the following applies:

  • You built, or hired someone else to build for you, a house on land that you already owned or leased.
  • You substantially renovated, or hired someone else to substantially renovate for you, your existing house (at least 90% of the interior of the existing house must be removed or replaced to be a substantial renovation).
  • You renovated, or hired someone else to renovate for you, your existing house and built, or hired someone else to build for you, a major addition to your house (for example, an addition that at least doubles the living space of your house, such as of a full second story to an existing bungalow. Adding a sun porch, sun room, family room, or bedroom by itself is not a major addition).
  • You converted a commercial building that you own, or have an interest in, into your house.
  • You purchased a new or substantially renovated mobile or floating home from a builder of the home (this includes the manufacturer or vendor of the home) or you or someone you hired substantially renovated such a home. When claiming a new housing rebate for a mobile or a floating home, you can claim the owner-built rebate or the rebate for a house purchased from a builder.

If you are eligible, use the following forms to apply for an owner-built housing rebate:

Send the appropriate forms or file your rebate application online using My Account for Individuals.

Note

For houses located in Ontario, you may be eligible to claim the Ontario new housing rebate if you are not eligible to claim the new housing rebate for some of the federal part of the HST only because the fair market value of the housing exceeds $450,000. An Ontario new housing rebate will be available (up to the applicable maximum of $24,000), regardless of the fair market value, as long as all of the other conditions for claiming the rebate are met. For more information, see Guide RC4028, GST/HST New Housing Rebate.

Documents to include with the rebate application and to keep for your records

Documents you have to send

In most cases, you do not have to send supporting documents with your GST/HST new housing rebate application. However, you do have to send invoices with your worksheet if the vendor did not charge the GST/HST on the invoice (photocopies of these invoices will be accepted). The CRA may contact you to ask for proof of occupancy. For more information, see Guide RC4028, GST/HST New Housing Rebate.

Documents you have to keep

Keep a copy of the filled-out forms. You also have to keep all your original invoices and documents you used to fill out the forms for six years in case the CRA asks to see them.

Only original invoices in the name of the claimant or the co-owners are acceptable. The CRA does not accept photocopies, credit card or Interac slips, or account statements, without the original invoices. The CRA does not accept estimates or quotes as proof. If the CRA asks you to send your invoices, they will be returned.

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