GST/HST new residential rental property rebate

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Find out if you are eligible for the GST/HST new residential rental property rebate
Find out which GST/HST new residential rental property rebate you can claim
What information to include with the rebate application and what records to keep

Find out if you are eligible for the GST/HST new residential rental property rebate

You may be eligible for the GST/HST new residential rental property rebate if you are a:

• landlord who purchased a newly constructed or substantially renovated residential rental property
• landlord who built your own residential rental property
• landlord who made an addition to a multiple-unit residential rental complex
• builder who had to account for the GST/HST under the self-supply rules because you sold a residential unit to an individual and leased the related land to that individual under a single written agreement (only available where the individual is entitled to claim the new housing rebate)
• person who had to account for the GST/HST under the self-supply or change-in-use rules because you made an exempt lease of land used for residential purposes (such as the rental of a residential lot or a site in a residential trailer park)

To be eligible for the new residential rental property rebate, the fair market value on the qualifying residential unit at the time tax was payable on the purchase or self-supply of the property must be less than $450,000. For land or a site in a trailer park the fair market value must be less than $112,500.

The rental accommodation or land must be intended for long-term use as a residence.

The rebate will go to the person who paid the GST/HST (the landlord for rental accommodations or to the lessor of the land for leased land).

For more information, see Guide RC4231, GST/HST New Residential Rental Property Rebate.

Find out which GST/HST new residential rental property rebate you can claim

You generally pay the GST/HST when you purchase a new or substantially renovated residential rental property from a builder. If you are the builder of a residential rental property, or if you make an addition to a multiple-unit residential rental property, you are generally considered to have made a self-supply and to have paid and collected tax on the fair market value of the rental property or addition at the time that you lease or occupy the first unit of the property as a place of residence.

As a residential landlord, you cannot claim an input tax credit (ITC) to recover the GST/HST paid or payable on the purchase of a residential complex or that you accounted for on the self-supply of the complex because long-term residential leases are exempt from GST/HST. However, you may be eligible to claim the new residential rental property (NRRP) rebate.

The following chart provides the different forms available to apply for a new residential rental property rebate.

Repayment of the NRRP rebate

You will have to repay the NRRP rebate if you claimed a rebate for Type 6 – Lease of building and land, and all of the following conditions are met:

• the rebate was for a qualifying residential unit (other than a unit located in a multiple unit residential complex)
• unit is sold within one year after it is first occupied as a place of residence after its construction or after the last substantial renovation of the unit was substantially completed (except when the unit is seized or repossessed by a creditor, or transferred to an insurer to settle an insurance claim)
• the purchaser is not buying the unit for his or her use as a primary place of residence or for a relation of the purchaser

In this situation, you will have to repay an amount equal to the rebate plus interest at the prescribed rate. The interest will apply for the period beginning on the day the rebate was paid to you or used to reduce an amount you owed and ending on the day you repay the rebate.

What information to include with the rebate application and what records to keep

Documents you have to send us

You have to send appropriate documents with your application. Information on these documents is provided for each application type in the previous section.

The processing of your rebate claim may be delayed or your rebate denied if the application form is not completed in full, the rebate calculation is incorrect, or if the documents requested are not submitted with your NRRP application. We accept photocopies of required documents.

Documents you have to keep

Keep a copy of the completed forms. Also, keep all of your records, including original receipts, invoices, written contracts, agreements, and other documents you used to complete the forms for six years after the end of the year to which they relate. All claims are subject to audit and, if requested, you have to make your records available to us.

Date modified:

2016-09-14