If you’ve purchased a new home or did some substantial house renovations via a builder, then you may be eligible for the GST/HST new housing rebate.
Another point of eligibility includes having bought shares in a co-operative housing corporation (co-op). The purpose for this purchase should be using it as a unit as a primary place of residence.
Additionally, according to the Government of Canada, if you’ve purchased either a new or substantially renovated mobile or floating home to live in, then you may be eligible for the new housing rebate. In terms of claiming the GST/HST rebate, there may also be the option to treat the property as if it’s being bought from a builder or being owner-built.
Which GST/HST new housing rebate can I claim?
The GST/HST new housing rebate lets qualified individuals get back some of the GST or the federal part of the HST paid for a home that is either substantially renovated or new. The house should be used as the primary place of residence for the individual in question or their relations when other conditions are met as well.
Depending on where you live, there may also be other new housing rebates available to you in terms of the provincial part of the HST. This may be counted whether or not you qualify for the GST/HST new housing rebate for the federal part of the HST.
Furthermore, it should be noted that the new house rebate is unavailable to a partnership or corporation.
What are the forms I should know about?
For a house that is purchased from a builder and for the purpose of being a primary place of residence, you may be eligible for a GST/HST new housing rebate if you qualify for one of these situations below.
- Purchased a new or substantially renovated house from a builder.
- Purchased a new or substantially renovated mobile or floating home from a builder. This also includes either the manufacturer or the vendor.
- Purchased a share of the capital stock of a co-op. Additionally, the co-op paid tax on a new or substantially renovated house.
- Purchased a new or substantially renovated house from a builder and you leased the land from the builder under the same agreement pertaining to purchasing the house. Additionally, the lease is either for 20 years or more or allows you the option to purchase the land.
Below are the relevant forms. Filling out the first form lets you recover the GST or the federal part of the HST. Meanwhile, the next form allows you to recover the provincial part of the HST if the house is in Ontario.
- Form GST190, GST/HST New Housing Rebate Application for Houses Purchased from a Builder
- Form RC7190 ON, GST190 Ontario Rebate Schedule
According to the Government of Canada, you can send your rebate application form online via the following web pages:
What about the forms that pertain to an owner-built house?
You might be eligible for a GST/HST new housing rebate in the situation where you get an owner-built house as well. Ensure that the property is your primary place of residence and that one of the situations below applies to you.
- You built or hired someone to build a house on land that you already owned or leased
- Had substantial renovations or hired someone to do those renovations for you.
- Renovated or hired someone to renovate for you or you hired someone to build a major addition to your house for you.
- Converted a commercial building that you either have an interest in or own into your house.
- Purchased either a new or substantially renovated mobile or floating home from a builder of the home or you or someone you hired renovated such the home substantially.
Below are the relevant forms for the owner-built housing rebate situation:
- Form GST191, GST/HST New Housing Rebate Application for Owner-Built Houses
- Form GST191-WS, Construction Summary Worksheet
- Form RC7191 ON, GST191 Ontario Rebate Schedule
You can visit the My Account for Individuals page of the Government of Canada website if you plan on filing your GST/HST new housing rebate application online.