Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 11th floor
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 181483
Dear [Client]:
Subject: GST/HST RULING
Ability to file a GST/HST new housing rebate
Thank you for your fax concerning your ability to file a goods and services tax/harmonized sales tax (GST/HST) new housing rebate for owner-built houses. We apologize for the delay in responding to you.
The HST applies in the participating provinces at the following rates: 13% in Ontario; and 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island. The GST applies in the rest of Canada at the rate of 5%.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
FACTS
Based on your fax and your telephone conversations with our colleagues in GST/HST Rulings ([…][Regional Office]), our understanding of the facts is as follows:
1. You are planning to engage another person, who is registered for GST/HST purposes, to construct a new house which you will use as your primary place of residence.
2. You will be the first individuals to occupy the house after the construction is begun.
3. You estimate that the fair market value of the house (together with the land subjacent to the house, and the land immediately contiguous to the house that is reasonably necessary for the use and enjoyment of the house as a place of residence for you) at the time the construction is substantially completed will be $[…][< $450,000].
4. The house will be constructed on land you purchased [#] years ago, which is located [in] […][location X, Province X].
5. [Location X] is an unorganized territory, meaning there is no municipal authority there to issue building permits for the construction of new houses. Consequently, you will be unable to obtain a building permit for the construction of your new house.
RULING REQUESTED
In order to claim a GST/HST new housing rebate for owner-built houses, you must complete Form GST191, GST/HST New Housing Rebate Application for Owner-Built Houses, and Form GST191-WS, Construction Summary Worksheet, and file the forms with the Canada Revenue Agency (CRA). Generally, Form GST191-WS requires you to provide the building permit number, but given that your new house will be located in an unorganized territory, you will be unable to provide that information.
Consequently, you would like to know if you will be able to file for a GST/HST new housing rebate for owner-built houses, even though you will be unable to obtain a building permit for the construction of your house.
RULING GIVEN
Based on the facts set out above, we rule that you will not be prevented from filing a GST/HST new housing rebate for owner-built houses because you are unable to obtain a building permit for the construction of your house.
Please note that you must meet all of the eligibility requirements set out in the ETA, as well as the deadline for filing the rebate application before the CRA can pay you the GST/HST new housing rebate for owner-built houses. For more information on the eligibility requirements for the rebate or for general information regarding the rebate, please refer to Guide RC4028, GST/HST New Housing Rebate, which is available on the CRA’s website.
In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, the CRA is bound by the ruling given in this letter provided that: none of the issues discussed in the ruling are currently under audit, objection, or appeal; no future changes to the ETA, regulations or the CRA’s interpretative policy affect its validity; and all relevant facts and transactions have been fully and accurately disclosed.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-670-0613. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.
Yours truly,
Mathieu Purney
Real Property Unit
Financial Institutions and Real Property Division
Excise and GST/HST Rulings Directorate
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