A Complete Guide To HST/GST

A sales tax will be added to the purchase price of a newly constructed or renovated house. The sales tax consists of two parts: a federal and a provincial part. Some provinces keep these portions separate, while others combine them to create the Harmonized Sales Tax. The GST/HST rebates allow you to claim a portion of the federal tax component, also known as the Goods and Services Tax (GST), and in certain provinces, there are also rebate for the provincial tax part. You might want to use a Rebate Calculator to know the exact rebate amount before submitting the application form.

Eligibility For The GST/HST Home Housing Discount Credit

You might be eligible for the federal or provincial rebate, only federal rebate, or only provincial rebate, depending upon your conditions and the province. You may receive a rebate on your new home if you are someone who-

  • Have purchased a newly built or significantly remodelled residential property to be used as housing, and it is located on land you bought or land you will give for lease for more than 20 years.
  • Have bought shares in a cooperative housing unit that you or your partner can use as your primary residence within a new building or one substantially renovated.
  • Have renovated your home heavily. That means that more than 90% of the interior must be removed or replaced.

In addition to the traditional housing types, mobile houses and floating homes are eligible for the rebate. The rebate is not available to corporations and partnerships. You can find out more about the GST/HST related news, which can help you calculate rebates.

How Much GST/HST Rebate Can You Claim?

If all requirements are met, a renovated or newly constructed house which will be used as the primary residence for the person or their family may be eligible to receive a GST/HST rebate. A company or partnership is ineligible for receiving the new housing rate.

How To Apply For The Hst/GST New House Rebate:

You must submit two forms to apply for HST/GST rebate. One that calculates your GST rebate, and the other one is an application form. If you reside in one of these provinces, like Ontario, British Columbia, or Nova Scotia, you must submit an additional form. Note that you need to submit the forms to the listed tax centres on the government’s site.

While you are not required to provide supporting documentation, you might be asked to produce evidence of occupancy or invoices. After submitting your application, you will receive your money in six months. Remember that the deadline to apply is usually two years from the base dates mentioned on the forms.

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