On this page

• Real property – Eligibility
• Capital personal property – Eligibility
• Restriction on claiming a rebate for seizures of real property or capital personal property
• Claim conditions

Real property – Eligibility

You can apply for this rebate if all of the following statements are true:

• You are not a GST/HST registrant
• You paid the GST/HST on real property such as land, a building or an interest in real property when you last acquired the property or made improvements to it (or both)
• You made a taxable sale of the property, including a deemed taxable sale
  
  • Find out if your sale is taxable

    If you need help determining whether your sale of real property is taxable or whether you are eligible for this rebate, call GST/HST Rulings at 1-800-959-8287.

You can apply for this rebate to recover some or all of the GST/HST payable on the purchase of real property or improvements made to the property (or both).

If the non‑registrant was entitled to recover in some other way (for example, by claiming another type of rebate) some or all of the tax they paid on their purchase of the property or for the improvements they made, the amount of this rebate will be reduced or eliminated by the amount they were entitled to recover (whether or not it was actually claimed).

Capital personal property – Eligibility

You can apply for this rebate if all of the following statements are true:

• You are a municipality or designated municipality that is not a GST/HST registrant
• You paid or are deemed to have paid the GST/HST on the purchase of capital personal property such as a computer, equipment or office furniture, or on improvements made to the property
• You later sell that property (for designated municipalities, the capital personal property sold must be designated municipal property)
• Your sale of that capital personal property is taxable and the GST/HST became payable or would have become payable on the sale had the property not been part of a supply of a business where no tax was payable because you and the purchaser made a joint election (for more information on this election, see Form GST44, GST/HST Election Concerning the Acquisition of a Business or Part of a Business)

You can apply for this rebate to recover some or all of the GST/HST payable on the purchase of the property or improvements made to the property (or both).

Any sale (other than an exempt sale) of capital personal property by a municipality is a taxable sale for GST/HST purposes. This also applies to any sale (other than an exempt sale) of capital personal property that is designated municipal property by a designated municipality.

If the municipality or designated municipality was entitled to recover in some other way (for example, by claiming another type of rebate) some or all of the tax paid on the purchase of the property, the amount of this rebate will be reduced or eliminated by the amount the municipality or designated municipality was entitled to recover, whether or not it was actually claimed.

Restriction on claiming a rebate for seizures of real property or capital personal property

A creditor can seize a person’s real property or capital personal property for non‑payment of a debt and sell it to a third party to recover the debt. If your property is seized, the CRA considers you to have made a sale to the creditor at the time of the seizure. When such a sale is taxable, you are eligible for a rebate under reason code 7, as long as all of the other conditions are met.

However, you may have a legal right under federal or provincial law, or under an agreement relating to a debt security, to redeem the property within a certain time after the creditor’s sale of the property.

In such a case, you cannot apply for the rebate unless the time limit for redeeming the property has expired and you have not redeemed the property. In addition, the payment for your sale of the property to the creditor is deemed to have become due on the day the time limit for redeeming the property expired.

Claim conditions

You cannot claim a rebate of GST/HST paid if any of the following statements are true:

• The amount was previously rebated, credited, refunded or remitted to you
• You received a credit note, or you issued a debit note for a refund, adjustment, or credit that includes the amount
• You claimed, or are entitled to claim, an input tax credit for the amount
• You are entitled to obtain a rebate, refund or remission of the amount through another program or means
• The deadline for filing the rebate has passed

In the case of bankruptcy, you will not be paid a rebate that you were entitled to claim before the appointment of a trustee in bankruptcy unless you have filed all returns and remitted all outstanding amounts for the reporting periods that ended before the appointment.