You might be able to claim the GST/HST rebate if you:
- Did a significant renovation on your home.
- Renovated your home and made an addition to your home.
- Changed a non-residential property into a residential property.
Note: You might also be eligible for a provincial new housing rebate if you live in Ontario or British Columbia or if you paid HST before April 1, 2013 (BC).
Read below to see if your construction makes your house technically “new.” Note that having a “new” house is not the only criterion for rebate eligibility. To see all of the conditions, consult the Owner-built houses guide
Substantial renovation
Significant and extensive renovation generally constitute a new house.
However, these renovations must be major to qualify. You more or less have to clear out the house’s interior for your renovation to qualify as a substantial renovation. In order to determine if your renovation qualifies, use the 90% test, which states that 90% or more of the interior of an existing house must be removed or replaced to for a renovation to be considered major.
Note that passing the 90% test does not require that you touch the house’s staircases, foundation, roof, supporting walls, and/or floors. However, GST/HST paid in renovating these items may be eligible for the GST/HST rebate.
A great way to evaluate if you’ve passed the 90% test is to look at the home’s floor space. If you’ve altered 90% of the home’s livable floor space, you’ve probably made a major renovation. You can also compare the wall space from before and after the renovation.
Non-livable spaces, such as garages and crawl spaces, are not counted in the home renovation calculations. Eligible spaces for the 90% test include basements, attics, and living rooms. However, basements and attics are not included in the 90% test if they are not livable spaces and the renovations made to them are not for the purpose of making them livable.
Simply adding a deck or a garage to an existing home would not qualify for the rebate. The rebate only considers renovation to the existing house. However, if you renovate your existing place of residence and the renovations are deemed to be substantial, the GST/HST for the additions will also be included in the GST/HST new housing rebate.
Major addition
Even though additions aren’t considered in evaluating a major renovation for the GST/HST rebate, an addition itself can make you eligible for the rebate if it is large enough. More specifically, an addition can make you eligible for the GST/HST new housing rebate if it is large enough to constitute a “new home.”
In order to qualify as a “new home,” the addition should at least equal your existing home in livable space, thus doubling the amount of livable space. For example, adding a second story to an existing one-story home may make your existing residence a new home.
The amount of livable space is the key factor in determining rebate eligibility, and the addition of space must be significant. Simply adding a porch or a deck won’t satisfy the rebate criteria.
Conversion
You can get around the 90% rule for substantial renovation if you convert a non-residential property to a residential one. If you make this conversion, you might be eligible for the GST/HST rebate if you meet all other
The purchase of a non-residential building can be eligible for the rebate if it is converted into a primary place of residence for you or your relation. In this case, a portion of the GST paid on the purchase of the home and any renovations would be potentially refundable if all other criteria are met.
You will pay us the GST based on the home’s fair market value if you owned a residence as capital property for a business and began using it as your primary place of residence. If you are fully eligible for the rebate, the GST you paid to us will be considered for the rebate.
You may be eligible for an input tax credit or rebate if you owned the home as capital for a business, paid the GST/HST when you first bought the building, began using it as your primary place of residence, but did not claim an input tax credit (ITC) for the GST/HST you paid on the home or renovations you made to the building before living there. Call 1-800-959-8287 if you need assistance.
