The GST/HST new housing rebate is not available to those who buy or renovate a new rental property to be used as the primary place of residence by renters. However, these individuals may be eligible for the GST/HST new residential rental property rebate (NRRP).
The GST/HST NRRP rebate is available to landlords who, for residential rental purposes:
- Had a builder construct or renovate the rental property;
- Constructed or hired a builder to construct housing or an addition to the housing;
- Substantially renovated, or had a builder renovate, housing;
- Changed a non-residential property to housing; or
- Issued an exempt lease or sublease to another individual.
The GST/HST NRRP rebate does not apply to you if:
- You acquired a residential rental property in which the GST/HST was not payable on the purchase (e.g. the purchase of an apartment building currently housing tenants);
- You build housing or an addition that do not constitute a taxable self-supply; or
- You purchased or constructed a new house or significantly renovated your existing house as your or your relation’s primary place of residence. For this, see Guide RC4028, GST/HST New Housing Rebate.
Which rental properties qualify for the GST/HST new residential rental property rebate?
In order to be eligible for the rebate, you must purchase and pay the GST/HST on a newly built or newly, significantly renovated rental property, which will act as the primary place of residence for renters. Builders of said properties may be eligible for the rebate if they paid and collected tax on the fair market value of a self-supply project when the first unit is leased as a primary place of residence to a renter.
Because long-term residential leases are exempt from GST/HST, residential landlords cannot reclaim the GST/HST on a purchase of a residential structure, or that which was accounted for on the self-supply of that structure, by claiming an input tax credit (ITC).
The GST/HST NRRP rebate may be available to you if you:
- Paid the GST/HST on a new or newly renovated residential structure or an interest in the structure, and you lease the structure or units in the structure to another person as a primary place of residence;
- Are a builder and pay or note the GST/HST on the self-supply of a residential complex or an addition to a structure with multiple units that you lease to another person as a primary place of residence;
- Are a builder and pay or note the GST/HST on the self-supply of a residential complex or an addition to a structure with multiple units and, under the same agreement, you executed an exempt sale of the building and an exempt long-term lease of the land;
- Paid the GST/HST on a new or newly renovated residential structure or an interest in the structure, and you lease the structure or units in the structure to another person as a primary place of residence, and you are part of a housing co-op;
- Pay for or note the GST/HST on the self-supply of a residential structure or an addition to a multiple unit residential structure and you lease units in the structure for long-term residential use, and are part of a co-op; or
Pay the GST/HST or note it on the self-supply of land that you lease to another person for use in housing a primary place of residence.
