Beyond Bending Tell You How
Buying a home is one of the biggest investments that most people make in their lifetime. In Canada, the government offers a variety of incentives to help make homeownership more affordable. One such incentive is the GST Housing Rebate.
The GST Housing Rebate is a refund of the Goods and Services Tax (GST) paid on the purchase of a new home or a substantially renovated home. In this blog post, we’ll take a closer look at the GST Housing Rebate and everything you need to know about it.
What is the GST Housing Rebate?
The GST Housing Rebate is a refund of the GST paid on the purchase of a new home or a substantially renovated home. The rebate is available to individuals who are buying a new home or substantially renovating an existing home for use as their primary place of residence.
The GST Housing Rebate is a federal program that is administered by the Canada Revenue Agency (CRA). The rebate is designed to help make homeownership more affordable by refunding a portion of the GST paid on the purchase or renovation of a home.
Who is Eligible for the GST Housing Rebate?
To be eligible for the GST Housing Rebate, you must meet the following criteria:
- You have purchased a new home or substantially renovated an existing home for use as your primary place of residence
- You paid GST on the purchase or renovation of the home
- You have not previously received a GST/HST new housing rebate
If you are purchasing a new home, you must also meet the following criteria:
- The fair market value of the home is less than $450,000
- The home is not a rental property
- You will be living in the home as your primary place of residence
If you are renovating an existing home, you must meet the following criteria:
- The home must be at least 20 years old
- The renovation must be substantial and include at least 90% of the interior of the home
- The renovation must be for the purpose of making the home your primary place of residence
How Much is the GST Housing Rebate?
The amount of the GST Housing Rebate depends on the purchase price or fair market value of the home, as well as the amount of GST paid. The maximum rebate amount is $6,300.
If the purchase price or fair market value of the home is less than $350,000, the maximum rebate amount is $6,300. If the purchase price or fair market value of the home is between $350,000 and $450,000, the rebate amount is reduced on a sliding scale.
How Do You Apply for the GST Housing Rebate?
To apply for the GST Housing Rebate, you must complete Form GST190, the GST/HST New Housing Rebate Application for Owner-Built Houses and Purchasers. The form must be completed and filed with the CRA within two years of the purchase or substantial renovation of the home.
You can file the application online using the CRA’s My Account service, or you can mail a paper copy of the form to the CRA. If you are filing a paper copy of the form, be sure to include all required documentation, including proof of purchase or renovation and proof of payment of GST.
Important Notes about the GST Housing Rebate
Here are some important notes to keep in mind about the GST Housing Rebate:
- The rebate only applies to the GST paid on the purchase or renovation of a home. It does not apply to the Provincial Sales Tax (PST) or the Harmonized Sales Tax (HST).
- The rebate is available to both Canadian citizens and permanent residents of Canada.
- If you are purchasing a new home, the builder may offer to claim the GST Housing Rebate on your behalf. In this case, you will need to sign a form authorizing the builder to claim the rebate.
- If you are purchasing a new home with multiple owners, all owners must meet the eligibility criteria in order to claim the GST Housing Rebate.
Conclusion
The GST Housing Rebate is a federal program that helps make homeownership more affordable by refunding a portion of the GST paid on the purchase or renovation of a home. To be eligible for the rebate, you must meet certain criteria and file an application with the Canada Revenue Agency within two years of the purchase or renovation of the home.
If you are planning to buy a new home or renovate an existing home, be sure to look into the GST Housing Rebate to see if you are eligible to receive a refund of the GST paid.
People Also Ask
How long does it take to get the GST Housing Rebate?
It can take up to eight weeks for the CRA to process your GST/HST New Housing Rebate application and issue your rebate.
Can you claim the GST Housing Rebate more than once?
No, you can only claim the GST Housing Rebate once.
What if I don’t qualify for the GST Housing Rebate?
If you do not qualify for the GST Housing Rebate, you may still be eligible for other programs and incentives offered by the federal or provincial government. Be sure to do your research and explore all of your options.
