Does A House Or Condominium Purchased For The Purpose Of Renting, Qualify For GST/HST Refund?

  • January 20, 2017

You may be eligible to claim the New Residential Rental Property (NRRP) rebate if you:

  • Paid the GST/HST on the purchase of a newly constructed or substantially renovated residential complex or an interest in the complex and you lease the complex or units in the complex to another person for residential use by an individual;
  • Are a builder and you paid or accounted for the GST/HST on the self-supply of a residential complex or an addition to a multiple unit residential complex that you lease to another person for residential use by an individual;
  • Are a builder and you paid or accounted for the GST/HST on the self-supply of a residential complex or an addition to a multiple unit residential complex and you made an exempt sale of the building and an exempt long-term lease of the land under a single written agreement;

The rebate does not apply if, for example, you:

  • Purchased a residential rental property and GST/HST was not payable on the purchase (for example, the purchase of an apartment building that is already occupied by tenants);
  • Are a builder of housing, or an addition to multiple unit housing and you are not considered to have made a taxable self-supply; or
  • Are an individual who purchased or constructed a new house or substantially renovated your existing house for use as a primary place residence. This would qualify for the New Housing Rebate.

What is a qualifying residential unit?

Each residential unit for which you are claiming an NRRP rebate has to be a qualifying residential unit. For example, if you own a triplex and one of the three units in the complex is a qualifying unit, you can claim an NRRP rebate for only that unit, provided the unit meets all of the other conditions for the NRRP rebate.