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