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There are many ways to obtain an HST rebate from the Canada Revenue Agency (CRA). An HST rebate is available under the GST/HST system to recover amounts paid in error or where the rebate is intended to provide specific relief to the taxpayer, such as the HST New Home Rebate.
HST New Home Rebate
The HST New Housing Rebate (or HST new home rebate) is available to an individual who buys a new home (or a substantially renovated house) from a builder or hires a builder to build a home for them on their existing property. For such purchasers, there are two components to the HST New Home Rebate: the federal and provincial portions of the rebate. For the 5% federal portion of the HST, the HST new home rebate is clawed-back for homes with a purchase price above $450,000.
Ontario, on the other hand, has its own HST new home rebate, called the HST New Housing Rebate that applies to the provincial portion of the HST (8% part) on new or substantially renovated homes used by the purchaser, or their relatives, as a primary place of residence. The HST new home rebate for homes purchased in Ontario is currently available up to $24,000 with no claw-back.
HST New Home Rebate for Rental Property
Similar to the HST New Home Rebate described above, there is also an HST rebate in Ontario for real property that is purchased for use as an investment property (i.e., rental property). In Ontario, the HST New Home Rebate for a rental property can be as much as $24,000.
There are strict deadlines to apply for the HST New Home Rebate. The general rule is that the purchaser must apply for the rebate within 2 years of their purchase or date of occupancy. What constitutes the occupancy date can be tricky and purchasers should be weary.
CRA Denying HST New Home Rebate
The CRA has been actively challenging HST new home rebate claims and disallowing the $24,000 rebate. Many individuals will have received a Notice of (Re)assessment that states their HST rebate claim has been denied and that they owe money to the CRA on account of not qualifying for the HST rebate. The CRA also charges interest on the outstanding amounts.
We assist many of our clients in disputing the CRA’s claim that they did not qualify for the HST New Home Rebate. To discuss this matter with one of our tax lawyers, we would encourage you to contact us at (416)847-7300 or by email at email@example.com.
Point of Sale Rebate
Point of Sale (POS) rebates are another HST rebate or GST rebate which is available in Ontario. This rebate is available on printed books, certain children’s items, feminine hygiene products, newspapers and qualifying foods and beverages.
For businesses that supply these items, it is important to ensure those items meet the particular requirements provided under the Excise Tax Act to administer the POS rebate.
Other HST Rebates
Other HST rebate (s) are available to public services bodies, partnerships, and employees.
Please contact us at (416)847-7300 to speak with a tax lawyer immediately. Email us at firstname.lastname@example.org.
You can visiting the following government website to learn more: