You may be eligible for the GST/HST new residential rental property (NRRP) rebate if you are in
one of the following situations:
You are a landlord who purchased a newly constructed or substantially renovated
residential rental property
- You are a landlord who built your own residential rental property
- You are a landlord who made an addition to a multiple-unit residential rental complex
- You are a 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 (available only if the individual is eligible to
claim the new housing rebate) - You are a person¹ 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)
Are you a builder for GST/HST purposes?
For GST/HST purposes, the term “builder” has a very specific meaning that is not limited to a
person who physically constructs housing. You do not have to physically construct or
substantially renovate a house yourself to be a builder for GST/HST purposes.
Generally, you are a builder of a residential complex, or an addition to a multiple unit
residential complex, if one of the following situations applies to you:
- You build or substantially renovate the complex or you build the addition, on land you
own or have acquired by way of lease, or you hire someone else to build or substantially
renovate the complex, or to build the addition, on land you own or have acquired by
way of lease. However, you are not a builder if your only interest in the land is a right to
purchase the housing or an interest in the housing from a builder - You acquire an interest in the housing when it is already under construction or
substantial renovation, or when the addition is under construction, except where the
interest is only a right to purchase the housing or an interest in the housing from a
builder - You acquire an interest in the housing before anyone has lived in it and your primary
purpose in acquiring the interest is to either sell the house, sell the interest, or to lease
the house to a person who will not use the house for their own personal use (for
example, you lease the house to another landlord) - You acquire an interest in a residential condominium unit either before the complex is
registered as a condominium or before anyone has lived in it, and your primary purpose
in acquiring the interest is to either sell the unit, sell the interest, or to lease the unit to
a person, such as a landlord, who will not use the unit for their own personal use
Restrictions
The NRRP rebate will not be paid in the following situations:
- You are an individual who is entitled to claim the GST/HST new housing rebate for a
newly constructed or a substantially renovated residential complex, whether the rebate
is paid to you or credited to you by the builder - You are entitled to claim a rebate for land leased to a lessee who subleases the land for
residential purposes
What is a qualifying residential unit?
Each residential unit for which you are claiming an NRRP rebate has to be a qualifying
residential unit. For example, if you own a triplex and one of the three units in the complex is a
qualifying unit, you can claim an NRRP rebate for only that unit, provided the unit meets all of
the other conditions for the NRRP rebate
- View the linked checklist to determine if your residential unit qualifies: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4231.html (page 9)
Example of Corporation (from Canada Revenue Agency website)
ABC Inc. purchased a new unoccupied multiple unit residential complex in Ontario to lease all of
the units to individuals for long-term use by those individuals as their place of residence.
Construction of the complex was already completed when ABC purchased it. ABC paid all of the
HST that was payable on the purchase. At the time the tax became payable, the FMV of each of
the residential units was $350,000.
ABC Inc. is not a co-op and is not a builder of the property. All of the units in the complex are
qualifying residential units. ABC Inc. cannot claim an ITC for the tax payable on the acquisition
of the complex.
ABC Inc. is entitled to claim an NRRP rebate under Type 6 for some of the federal part of the
HST it paid on the acquisition of the complex. Since the complex is located in Ontario and ABC
Inc. paid HST on the purchase, it is also entitled to claim an Ontario NRRP rebate for some of
the provincial part of the HST it paid on the acquisition of the complex.
¹Person: means an individual, a partnership, a corporation, the estate of a deceased individual, a trust, or
any organization such as a society, a union, a club, an association, or a commission.
