2006 and 2008 GST/HST transitional rebates

The GST/HST transitional rebate for builders of new housing on leased land

Generally, builders cannot claim a GST/HST transitional rebate. Also, builders cannot pay or credit the transitional rebate to the purchaser of new housing. However, you can claim the transitional rebate if you are a builder who sells new housing and leases the land attributable to the housing under a single agreement, you were required to self-assess GST or HST, and all of the other conditions are met. For more information, see Form GST192, GST/HST Transitional Rebate Application for Builders of New Housing on Leased Land.

The GST/HST transitional rebate for purchasers of new housing

2008 transitional rebate

You may be entitled to claim the 2008 transitional rebate if you signed a purchase and sale agreement to buy a new or substantially renovated house after May 2, 2006, and before October 31, 2007, and both ownership and possession transferred to you after December 31, 2007.

2006 and 2008 transitional rebates

You may be entitled to claim both the 2006 and 2008 transitional rebates if you signed a purchase and sale agreement to buy a new or substantially renovated house before May 3, 2006, and both ownership and possession transferred to you after December 31, 2007.

2006 transitional rebate

You may be entitled to claim a 2006 transitional rebate if you signed a purchase and sale agreement to buy a new or substantially renovated house before May 3, 2006, and both ownership and possession of the house are transferred to you after June 30, 2006, and before January 1, 2008.

These rebates account for the reduction in the rate of GST/HST in 2006 and 2008. If you can claim the new housing rebate, the calculation for one or both transitional rebates will take this into account. If you cannot claim the new housing rebate (for example, because the purchase price of the house is $450,000 or more), you may still be entitled to claim one or both transitional rebates.

Also, you may be eligible to claim a transitional rebate if you buy a new house in Canada that is not your primary place of residence such as a cottage or an investment property. For more information, see Form GST193, GST/HST Transitional Rebate Application for Purchasers of New Housing.

You are not eligible for this rebate if you built your own house. The rebate calculations on Form GST191, GST/HST New Housing Rebate Application For Owner-Built Houses, take into account the possibility that you have paid GST and/or HST at different rates during the construction.

Repayment of transitional rebates

You may have been entitled to receive a GST/HST transitional rebate as a result of the reduction in the rate of GST/HST in 2006 and 2008.

If your transitional rebate was for a unit that previously did not qualify for the GST/HST new residential rental property rebate (NRRP), but does qualify because of the changes announced on February 26, 2008, you have to reduce the NRRP rebate by the amount of the transitional rebate. The calculations are included in Form GST524, GST/HST New Residential Rental Property Rebate Application. For more information on the changes, see Guide RC4231, GST/HST New Residential Rental Property Rebate.

Forms and publications

• Guide RC4028, GST/HST New Housing Rebate
• Guide RC4231, GST/HST New Residential Rental Property Rebate
• Form GST191, GST/HST New Housing Rebate Application For Owner-Built Houses
• Form GST192, GST/HST Transitional Rebate Application for Builders of New Housing on Leased Land
• Form GST193, GST/HST Transitional Rebate Application for Purchasers of New Housing
• Form GST524, GST/HST New Residential Rental Property Rebate Application
• GST/HST Info Sheet GI-043, The 2008 GST/HST Rate Reduction and Purchases of New Housing