Resellers of housing in Ontario
Disclaimer
We do not guarantee the accuracy of this copy of the CRA website.
Scraped Page Content
Resellers of housing in Ontario
First reseller
When a person acquires new housing from the original builder on a grandparented basis for the purpose of making a taxable sale of the housing, that person is a first reseller.
Subsequent reseller
A person who acquires new housing from a first reseller (or a subsequent reseller) for the purpose of making a taxable sale of the housing is a subsequent reseller.
Rules for sales by a reseller
If you are a first reseller or a subsequent reseller and certain conditions are met, the provincial part of the HST does not apply to your sale (instead the GST at 5% applies).
Example
You entered into an agreement to buy a unit in a condominium in May 2009 for the purpose of selling the unit. You were dealing at arm’s length with the builder and you were not associated with the builder. Construction was completed and the condominium was registered in March 2014 and you received possession after that time. In April 2014, before anyone has lived in it, you decided to sell the unit. You did not sell the unit back to the builder. The buyer is an individual, is dealing at arm’s length with the builder, and is not associated with the builder.
The GST at the rate of 5% applies to your sale of the condominium unit.
For more information, see GST/HST Info Sheet GI-098, Harmonized Sales Tax: Resales of New Housing in Ontario and British Columbia.
Sales by a reseller that are subject to the HST
You can claim an input tax credit equal to 2% of the purchase price of the housing bought on a grandparented basis from the original builder if you are a first reseller, you are a GST/HST registrant, and the HST applied to your taxable sale of the housing.
If these conditions otherwise apply, except that you are not a GST/HST registrant, you can claim a rebate equal to 2% of the purchase price of the grandparented housing from the original builder. You have two years from the date you transferred possession of the housing to the purchaser to file your rebate.
To claim this rebate, use Form RC7003-ON, Ontario Retail Sales Tax (RST) Transitional New Housing Rebate for Non-registrant First Resellers.
If you are a subsequent reseller, other rules apply. For more information, see GST/HST Info Sheet GI-098, Harmonized Sales Tax: Resales of New Housing in Ontario and British Columbia.
Disclosure requirements for resellers
A reseller of housing has to make a written disclosure to the purchaser containing the following information:
- the name(s) of the original builder(s) of the the housing;
- whether the housing was purchased on a grandparented basis or was relieved from the provincial part of the HST under the reseller rule; and
- whether the provincial part of the HST applies to the sale, and, if so, whether the purchase price stated in the agreement includes the provincial part of the HST, net of any Ontario new housing rebate, if applicable.
For more information, see GST/HST Info Sheet GI-090, Harmonized Sales Tax: Builder Disclosure Requirements in Ontario and British Columbia.
Forms and publications
- GST/HST NOTICE244, Harmonized Sales Tax for Ontario - Questions and Answers on Housing Rebates and Transitional Rules for Housing and Other Real Property Situated in Ontario
- GST/HST Info Sheet GI-090, Harmonized Sales Tax: Builder Disclosure Requirements in Ontario and British Columbia
- GST/HST Info Sheet GI-098, Harmonized Sales Tax: Resales of New Housing in Ontario and British Columbia
- Form RC7003-ON, Ontario Retail Sales Tax (RST) Transitional New Housing Rebate for Non-registrant First Resellers
- Date modified:
- 2014-11-07