GST/HST and the construction industry
Notice to reader
Under proposed changes, the special reporting requirements of grandparented housing sales for builders have been simplified. For more information, see Reporting of Grandparented Housing Sales in the 2016 Federal Budget - Tax Measures: Supplementary Information and Form RC4617, Election and Schedule to a Return for Simplified Reporting of Specified Housing Supplies.
GST/HST generally applies to sales and rentals of real property (land and buildings) and intangible personal property such as trademarks and rights.
GST/HST applies to a number of supplies common to the construction industry. Examples of taxable goods and services include:
- construction, plumbing, electrical, and installation services;
- decorating, architectural, and engineering services;
- construction materials, equipment and tools;
- heating/cooling/ventilation systems;
- flooring, cabinetry, fixtures and appliances;
- services provided by land surveyors, and real estate agents;
Registrants are generally required to collect the GST/HST on their taxable supplies. However, where the purchaser is buying real property (other than an individual purchasing housing), the GST/HST registration status of the buyer generally determines who collects and remits the GST/HST.
Registrants may be entitled to claim input tax credits (ITCs) to recover the GST/HST paid on the goods and services they used.
|GST/HST information for builders of housing
Including self-supply rules
|Timing rules for determining when the GST/HST becomes payable on the supply of real property
How to determine the date that the tax becomes payable on supplies of real property
|Collecting and remitting GST/HST when you sell or purchase taxable real property
Determining when the vendor collects the tax or when the buyer remits the tax directly
- Substantial renovations, conversions, and major additions
- Exempt sales of residential housing and vacant land
- Construction industry (T5018)
Forms and publications
- GST/HST Memorandum 19-1, Real Property and the GST/HST
- GST/HST Memorandum 19-4-1, Commercial Real Property - Sales and Rentals
- GST/HST Memorandum 19-4-2, Commercial Real Property - Deemed Supplies
- Guide RC4052, GST/HST Information for the Home Construction Industry
- Date modified: