GST REBATE
Do I get one?
People who buy a new
or substantially renovated home from a builder may qualify for a rebate of part
of the GST or HST they pay on the purchase price. In some cases, you may apply
on your client's behalf, and then pay the rebate directly to them, or credit
them (for example, by reducing the purchase price of the home). Please note
that the application must be filed with your GST/HST return.
The GST New Housing
Rebate provides a refund of 36% of the (6%) GST paid on a new home costing
$350,000 or less, up to a maximum of $7,560. The rebate is reduced
proportionally for new homes priced between $350,000 and $450,000. There is no
rebate for new homes priced above $450,000. The $350,000-$450,000 thresholds
have remained unchanged since the GST was introduced in 1991.
Substantial renovation
of a residential complex means the renovation or alteration of a building to
such an extent that all or substantially all (90% or more) of the building that
existed immediately before the renovation or alteration was begun, other than
the foundation, external walls, interior supporting walls, floors, roof and
staircases, has been removed or replaced where, after completion of the
renovation or alteration, the building is, or forms part of, a residential
complex
CAUTION: 99% of all builders require the abovementioned GST REBATE to be
assigned to them, because they are providing a credit that is built into the
purchase price, on closing. Therefore, unless the builder’s agreement of
purchase and sale is silent on the assignment of the GST REBATE you will likely
not receive this rebate.
by Ryan Carson