GST/HST new residential rental property rebate


Eligibility for the GST/HST new residential rental property rebate

You may be eligible for the GST/HST new residential rental property (NRRP) rebate if you are in one of the following situations:

  • You are a landlord who purchased a newly constructed or substantially renovated residential rental property
  • You are a landlord who built your own residential rental property
  • You are a landlord who made an addition to a multiple-unit residential rental complex
  • You are a builder who had to account for the GST/HST under the self-supply rules because you sold a residential unit to an individual and leased the related land to that individual under a single written agreement (available only if the individual is eligible to claim the new housing rebate)
  • You are a person who had to account for the GST/HST under the self-supply or change-in-use rules because you made an exempt lease of land used for residential purposes (such as the rental of a residential lot or a site in a residential trailer park)

To be eligible for the NRRP rebate, the fair market value on the qualifying residential unit must be less than $450,000 when the tax was payable on the purchase or self-supply of the property. For land or a site in a residential trailer park, the fair market value must be less than $112,500.

The rental accommodation or land must be intended for long-term use as a residence. 

Note

For residential rental properties located in Ontario, you may be eligible to claim the Ontario NRRP rebate if you are not eligible to claim the NRRP rebate for some of the federal part of the HST only because the fair market value of the qualifying residential unit exceeds $450,000. For more information, see GST/HST Info Sheet GI-093, Harmonized Sales Tax: Ontario New Residential Rental Property Rebate. If a person is entitled to claim a public service bodies’ rebate with respect to the residential rental property, then the person is not entitled to claim the NRRP rebate.

The NRRP rebate goes to the person who paid the GST/HST (the landlord for rental accommodations or to the lessor of the land for leased land).

For more information, see Guide RC4231, GST/HST New Residential Rental Property Rebate.

GST/HST new residential rental property rebates you can claim

You generally pay the GST/HST when you purchase a new or substantially renovated residential rental property from a builder. If you are the builder of a residential rental property, or if you make an addition to a multiple-unit residential rental property, you are generally considered to have made a self-supply and to have paid and collected tax on the fair market value of the rental property or addition at the time that you lease or occupy the first unit of the property as a place of residence.

Long-term residential leases are exempt from GST/HST. This means that, as a residential landlord, you cannot claim an input tax credit to recover the GST/HST paid or payable on the purchase of a residential complex or that you accounted for on the self-supply of the complex. However, you may be eligible to claim the NRRP rebate.

For a single unit residential complex, residential condominium unit or lease of land, use the following forms to apply for an NRRP rebate if you are eligible:

For a cooperative housing corporation and multiple-unit residential complex, use the following forms to apply for an NRRP rebate if you are eligible:

Send the appropriate forms or file your rebate application online using My Account for Individuals, My Business Account or Represent a Client.

Repaying the NRRP rebate

You will have to repay the NRRP rebate if you claimed a rebate for the lease of a building and land, and all of the following conditions are met:

  • The rebate was for a qualifying residential unit (other than a unit located in a multiple-unit residential complex)
  • The unit is sold within one year after it is first occupied as a place of residence after construction or after the last substantial renovation of the unit was substantially completed (except when the unit is seized or repossessed by a creditor or transferred to an insurer to settle an insurance claim)
  • The purchaser is not buying the unit for their use as a primary place of residence or for a relation of the purchaser

In this situation, you will have to repay an amount equal to the rebate plus interest at the prescribed rate. The interest will apply for the period beginning on the day the rebate was paid to you or used to reduce an amount you owed and ending on the day you repay the rebate.

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

Documents you have to send

You have to send appropriate documents with your NRRP rebate application. For more information on which documents are needed for each application type, see Guide RC4231, GST/HST New Residential Rental Property Rebate.

Make sure you completely fill out the form, calculate the rebate correctly, and send the requested documents with your application. The CRA accepts photocopies of the required documents. Errors or missing information may delay processing of your request or result in it being denied.

Documents you have to keep

Keep a copy of the filled-out forms. You also have to keep all original receipts, invoices, written contracts, agreements, and other documents you used to fill out the forms for six years after the end of the year to which they relate. The CRA may audit your claim or ask to see your records.

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