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How to Apply For HST Rebate On New Home

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The HST rebate for new homes, formally known as the New Residential Rental Property Rebate or NRRPR is for those who have purchased a new home from a builder and has paid the harmonized sale tax during the purchase. Since housing property is expected from taxation in Canada, you can get back a part of the tax that you have paid. However, you have to pay the tax during the sale and that is a minor financial constraint. Here’s a short guide on how to apply for HST rebate on new home

When one is buying a new condo or a home that he or she will rent out, the NRRPR rebate is only applicable once the buyer has closed the deal. The buyer should close the deal and not the vendor. This is what creates the additional financial burden as one has to bear.

Check If You Are Eligible

Before you apply for the rebate, you must check if you are eligible or not. You are eligible for the HST rebate on a new home if you satisfy any one of the following criteria:

  • You have purchased a constructed housing, a brand new housing or a housing that has been substantially renovated. This includes housing on leased land too. Furthermore, if the land has been leased to you for over twenty years, you can buy the land too and use it for your place to the residence.
  • You have purchased shares in a cooperative housing complex. You want to use a unit in the housing complex as your own or give it to a relative. You or your relative will use it as the primary place to the residence.
  • You are also eligible for the rebate if you have constructed or substantially renovated your own home. You can hire someone else to construct or renovate your home, or you can do it yourself. This can be your own home or the home of your relatives. This includes parents or in-laws. The fair market value of this house should be less than $450,000.

Even mobile homes and floating homes qualify as housing. In these cases, you have to treat your home as a purchase home or as an owner-built home when you are claiming the rebate.

What Rebate Options Are Available?

There are multiple rebate options that are available. Depending on which category your home falls in, you get multiple rebate options that you can apply for. The names of the rebates are as follows:

  • Owner-built houses
  • Houses purchased from a builder
  • Provincial transitional new housing rebates
  • British Columbia transition tax rebate
  • 2006 and 2008 GST/HST transitional rebates

Depending on what housing you have, you have to fill in the corresponding form and apply with the supporting documents

What Information is Required?

In most of the cases, filling out the application form is enough. There is no need for any other documentation other than the invoices. This also includes the worksheet where the vendor has mentioned the prices without the taxes. You can either send the invoices in original copy or a photocopy of them. Moreover, you can also be contacted by the authorities and you may be needed to show a proof of occupancy.

There is also a list of documents that you should keep with yourself till you get the rebate. This obviously includes a copy of the filled application forms. Moreover, you need to keep the invoices and all other documents associated with the purchase of your housing. It is advised to keep them for up to six years. You are required to keep all the documents in original. In case you have sent in original invoices with the application, they will be returned to you after the review.

This is how to apply for HST rebate on a new home.

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