For GST/HST returns for periods prior to September 2023, a New Residential Rental Property Rebate was available in respect of the paid GST, or the federal component of the paid HST, by a rental property landlord upon their purchase of the property from the builder. When the supply is deemed a self-supply of rental property, the GST should be self-assessed by the landlord-builder. The residential unit qualifies when it costs less than $450,000, and subject to the following conditions:

§  A person, other than the builder, is the recipient of a taxable supply by way of sale of a residential complex or an interest in residential complex, or

§  A builder of a residential complex or in addition to a multiple-unit residential complex makes an exempt supply by way of lease that results in a deemed self-supply to the builder

§  The person is not a cooperative housing corporation;

§  The property is a qualifying residential unit of the person or includes one or more qualifying residential units of the person; and

§  The person is not entitled to include the tax in respect of the purchase from the supplier or the self-assessed tax in the case of a builder when determining ITCs.

This rebate was calculated as the lesser amount of $6,300 and 36% of the total GST paid, or self-assessed, when there was only one unit purchased, or the proportion of the total GST paid, or self-assessed, corresponding to the particular unit’s percentage of total floor space when there was a multiple unit residential complex. The previous rebate, however, was phased out by the following formula where the fair market value of a unit is more than $350,000 but less than $450,000, which limited the GST relief available to builders: