New Harmonized Value-added Tax System Regulations, No. 2 (SOR/2010-151)

DIVISION 5Rebates for Owner-built Homes

Marginal note:Definitions

• 46 (1) In this section, relation has the same meaning as in subsection 256(1) of the Act.

• Marginal note:Rebate in Ontario

  (2) If

  • (a) an individual is entitled to claim a rebate under subsection 256(2) of the Act in respect of a residential complex that the individual has constructed or substantially renovated, or has engaged another person to construct or substantially renovate, and that is for use in Ontario as the primary place of residence of the individual or a relation of the individual, or the individual would be so entitled if the fair market value of the complex, at the time the construction or substantial renovation of the complex is substantially completed, were less than $450,000, and

  • (b) the individual has paid all of the tax payable by the individual in respect of the supply by way of sale to the individual of the land that forms part of the complex or an interest in the land or in respect of the supply to, importation by, or bringing into Ontario by, the individual of any improvement to the land or, in the case of a mobile home or floating home, of the complex (the total of which tax under subsection 165(2) and sections 212.1, 218.1 and 220.05 to 220.07 of the Act is referred to in this subsection and subsection (4) as the “total tax in respect of the province”),

  for the purposes of subsection 256.21(1) of the Act, the individual is a prescribed person and the amount of the rebate in respect of the residential complex under that subsection is equal to

  • (c) if tax under subsection 165(2) of the Act is payable in respect of the supply by way of sale to the individual of the land that forms part of the complex or an interest in the land, the lesser of $24,000 and 75% of the total tax in respect of the province, or

  • (d) otherwise, the lesser of $16,080 and 75% of the total tax in respect of the province.

• (3) [Repealed, SOR/2012-191, s. 39]

• Marginal note:Homes occupied before substantial completion

  (4) If an individual acquires an improvement in respect of the residential complex referred to in subsection (2) and tax in respect of the improvement becomes payable by the individual more than two years after the day on which the complex is first occupied as described in subparagraph 256(2)(d)(i) of the Act, that tax shall not be included under paragraph (2)(b) in determining, for the complex, the total tax in respect of the province.

• Marginal note:Mobile homes and floating homes

  (5) For the purposes of this section, a particular individual is deemed to have constructed a mobile home or floating home and to have substantially completed the construction immediately before the earlier of the times referred to in paragraph (d) and, in the case of a mobile home or floating home imported by the individual, any use or occupation of the home outside Canada is deemed not to be use or occupation of the home, if

  • (a) the particular individual at a particular time purchases, imports or brings into Ontario the mobile home or floating home and at the particular time the home has never been used or occupied by any individual as a place of residence or lodging in Canada;

  • (b) the particular individual does not file with the Minister or submit to the supplier an application for a rebate in respect of the home under section 254 or 254.1 of the Act or for a rebate in respect of the home under section 256.21 of the Act the amount of which is determined under subsection 41(2) or 43(1);

  • (c) the particular individual is acquiring, importing or bringing into Ontario the mobile home or floating home for use as the primary place of residence of the particular individual or of a relation of the particular individual; and

  • (d) the first individual to occupy the mobile home or floating home in Canada at any time is the particular individual or a relation referred to in paragraph (c), or the particular individual at any time transfers ownership of the home under an agreement for an exempt supply by way of sale of the home.

• Marginal note:Application for rebate

  (6) For the purposes of subsection 256.21(2) of the Act, an application for a rebate in relation to a residential complex, the amount of which is determined under subsection (2), must be filed on or before

  • (a) the day (in this subsection referred to as the “due date”) that is the earliest of

    • (i) the day that is four years after the day on which the complex is first occupied as described in subparagraph 256(2)(d)(i) of the Act,

    • (ii) the day that is two years after the day on which ownership is transferred as described in subparagraph 256(2)(d)(ii) of the Act, and

    • (iii) the day that is two years after the day on which construction or substantial renovation of the complex is substantially completed;

  • (b) any day after the due date allowed by the Minister under paragraph 256(3)(b) of the Act in respect of a rebate under section 256 of the Act in relation to the residential complex; or

  • (c) if paragraph (b) does not apply, any day after the due date that is set out in a written request filed with the Minister by the individual referred to in subsection (2) and that is satisfactory to the Minister.

DIVISION 6New Residential Rental Property Rebates

Marginal note:Definitions

• 47 (1) In this subsection, percentage of total floor space, qualifying residential unit and relation have the same meanings as in subsection 256.2(1) of the Act.

• Meaning of provincial portion of basic tax content

  (2) In this section, provincial portion of basic tax content, at a particular time, of property of a person means the amount that would be the basic tax content of the property at that time if no amount of tax under any of subsection 165(1) and sections 212 and 218 of the Act were included in determining that basic tax content.

• Marginal note:Land and building — Ontario

  (3) Subject to subsections (13) to (15), if a person is entitled to claim a rebate under subsection 256.2(3) of the Act in respect of a residential complex, an interest in a residential complex or an addition to a multiple unit residential complex, situated in Ontario, or the person would be so entitled if the fair market value of the complex or addition were less than $450,000, for the purposes of subsection 256.21(1) of the Act, the person is a prescribed person and the amount of the rebate under that subsection in respect of the complex, interest or addition, as the case may be, is equal to the total of all amounts each of which is an amount, in respect of each residential unit that forms part of the complex or addition and that is a qualifying residential unit of the person at the specified time — being the time at which the tax in respect of the complex, interest or addition, as the case may be, first becomes payable in respect of the purchase from the supplier (within the meaning of subparagraph 256.2(3)(a)(i) of the Act) or is deemed to have been paid by the person in respect of the deemed purchase (within the meaning of subparagraph 256.2(3)(a)(ii) of the Act) — equal to the lesser of $24,000 and the amount determined by the formula

  A × B

  where

  A

  is 75% of the total tax under subsection 165(2) of the Act that, at the specified time, is payable in respect of the purchase from the supplier or is deemed to have been paid in respect of the deemed purchase of the complex or addition; and

  B

  is

  • (a) if the unit is a single unit residential complex or a residential condominium unit, 1, and

  • (b) in any other case, the unit’s percentage of the total floor space.

• Marginal note:Land and building — Newfoundland and Labrador

  (4) Subject to subsections (13) to (15), if a person is entitled to claim a rebate under subsection 256.2(3) of the Act in respect of a residential complex, an interest in a residential complex or an addition to a multiple unit residential complex, situated in Newfoundland and Labrador, for the purposes of subsection 256.21(1) of the Act, the person is a prescribed person and the amount of the rebate under that subsection in respect of the complex, interest or addition, as the case may be, is equal to the total of all amounts each of which is an amount, in respect of each residential unit that forms part of the complex or addition and that is a qualifying residential unit of the person at the specified time — being the time at which the tax in respect of the complex, interest or addition, as the case may be, first becomes payable in respect of the purchase from the supplier (within the meaning of subparagraph 256.2(3)(a)(i) of the Act) or is deemed to have been paid by the person in respect of the deemed purchase (within the meaning of subparagraph 256.2(3)(a)(ii) of the Act) — equal to the amount determined by the formula

  A × ($450,000 − B)/$100,000

  where

  A

  is the lesser of $12,600 and the amount determined by the formula

  A₁ × A₂

  where

  A₁

  is 36% of the total tax under subsection 165(2) of the Act that, at the specified time, is payable in respect of the purchase from the supplier or is deemed to have been paid in respect of the deemed purchase of the complex or addition, and

  A₂

  is

  • (i) if the unit is a single unit residential complex or a residential condominium unit, 1, and

  • (ii) in any other case, the unit’s percentage of total floor space; and

  B

  is the greater of $350,000 and

  • (i) if the unit is a single unit residential complex or a residential condominium unit, the fair market value of the unit at the specified time, and

  • (ii) in any other case, the amount determined by the formula

    B₁ × B₂

    where

    B₁

    is the unit’s percentage of total floor space, and

    B₂

    is the fair market value at the specified time of the residential complex or addition, as the case may be.

• Marginal note:Sale of building and lease of land — Ontario

  (5) Subject to subsections (13) and (14), if a person is entitled to claim a rebate under subsection 256.2(4) of the Act in respect of a residential complex or an addition to a multiple unit residential complex, situated in Ontario, or the person would be so entitled if the fair market value of the complex or addition were less than $450,000 for the purposes of that subsection and subsection 254.1(2) of the Act and the amount determined by the first formula in subsection 256.2(4) of the Act were a positive amount, for the purposes of subsection 256.21(1) of the Act, the person is a prescribed person and the amount of the rebate in respect of the complex or addition under that subsection is equal to the total of all amounts each of which is an amount, in respect of a residential unit that forms part of the complex or addition, as the case may be, and is, in the case of a multiple unit residential complex or an addition to such a complex, a qualifying residential unit of the person at the specified time — being the time at which the person is deemed under section 191 of the Act to have made and received a taxable supply by way of sale of the complex or addition and to have paid tax in respect of that supply — determined by the formula

  A - B

  where

  A

  is the lesser of $24,000 and the amount determined by the formula

  A₁ × A₂

  where

  A₁

  is 75% of the tax under subsection 165(2) of the Act that is deemed under section 191 of the Act to have been paid by the person at the specified time, and

  A₂

  is

  • (a) if the unit is a single unit residential complex or a residential condominium unit, 1, and

  • (b) in any other case, the unit’s percentage of total floor space; and

  B

  is the amount of the rebate, if any, under subsection 256.21(1) of the Act, the amount of which is determined under subsection 43(1), that the recipient of the exempt supply by way of sale referred to in subparagraph 256.2(4)(a)(i) of the Act is entitled to claim in respect of the complex or unit.

• Marginal note:Sale of building and lease of land — Newfoundland and Labrador

  (6) Subject to subsections (13) and (14), if a person is entitled to claim a rebate under subsection 256.2(4) of the Act in respect of a residential complex or an addition to a multiple unit residential complex, situated in Newfoundland and Labrador, for the purposes of subsection 256.21(1) of the Act, the person is a prescribed person and the amount of the rebate in respect of the complex or addition under that subsection is equal to the total of all amounts each of which is an amount, in respect of a residential unit that forms part of the complex or addition, as the case may be, and is, in the case of a multiple unit residential complex or an addition to such a complex, a qualifying residential unit of the person at the specified time — being the time at which the person is deemed under section 191 of the Act to have made and received a taxable supply by way or sale of the complex or addition and to have paid tax in respect of that supply — determined by the formula

  A × ($450,000 − B)/$100,000

  where

  A

  is the lesser of $12,600 and the amount determined by the formula

  A₁ × A₂

  where

  A₁

  is 36% of the tax under subsection 165(2) of the Act that is deemed under section 191 of the Act to have been paid by the person at the specified time, and

  A₂

  is

  • (i) if the unit is a single unit residential complex or a residential condominium unit, 1, and

  • (ii) in any other case, the unit’s percentage of total floor space; and

  B

  is the greater of $350,000 and

  • (i) if the unit is a single unit residential complex or a residential condominium unit, the fair market value of the unit at the specified time, and

  • (ii) in any other case, the amount determined by the formula

    B₁ × B₂

    where

    B₁

    is the unit’s percentage of total floor space, and

    B₂

    is the fair market value at the specified time of the residential complex or addition, as the case may be.

• Marginal note:Cooperative housing corporation — Ontario

  (7) Subject to subsections (13) and (14), if a cooperative housing corporation (in this subsection referred to as the “cooperative”) is entitled to claim a rebate in respect of a residential unit included in a residential complex situated in Ontario under subsection 256.2(5) of the Act, or would be so entitled if the fair market value of the residential complex were less than $450,000 and the amount determined by the first formula in that subsection were a positive amount, for the purposes of subsection 256.21(1) of the Act, the cooperative is a prescribed person in respect of the unit and the amount of the rebate in respect of the unit under that subsection is equal to the amount determined by the formula

  A - B

  where

  A

  is the lesser of $24,000 and the amount determined by the formula

  A₁ × A₂

  where

  A₁

  is 75% of the tax under subsection 165(2) of the Act that is payable in respect of the purchase from the supplier (within the meaning of subparagraph 256.2(5)(a)(i) of the Act) of the complex or an interest in the complex, as the case may be, or is deemed to have been paid in respect of the deemed purchase (within the meaning of subparagraph 256.2(5)(a)(ii) of the Act) of the complex or an addition to the complex, as the case may be, and

  A₂

  is

  • (a) if the unit is a single unit residential complex, 1, and

  • (b) in any other case, the unit’s percentage of total floor space; and

  B

  is the amount of the rebate, if any, under subsection 256.21(1) of the Act, the amount of which is determined under subsection 45(2), that the recipient of the exempt supply of the unit referred to in paragraph 256.2(5)(c) of the Act is entitled to claim in respect of the unit.

• Marginal note:Cooperative housing corporation — Newfoundland and Labrador

  (8) Subject to subsections (13) and (14), if a cooperative housing corporation (in this subsection referred to as the “cooperative”) is entitled to claim a rebate in respect of a residential unit included in a residential complex, situated in Newfoundland and Labrador, under subsection 256.2(5) of the Act, for the purposes of subsection 256.21(1) of the Act, the cooperative is a prescribed person in respect of the residential unit and the amount of the rebate in respect of the residential unit under that subsection is equal to the amount determined by the formula

  A × ($450,000 − B)/$100,000

  where

  A

  is the lesser of $12,600 and the amount determined by the formula

  A₁ × A₂

  where

  A₁

  is 36% of the tax under subsection 165(2) of the Act that is payable in respect of the purchase from the supplier (within the meaning of subparagraph 256.2(5)(a)(i) of the Act) of the residential complex or an interest in the residential complex, as the case may be, or is deemed to have been paid in respect of the deemed purchase (within the meaning of subparagraph 256.2(5)(a)(ii) of the Act) of the residential complex or addition to the residential complex, as the case may be, and

  A₂

  is

  • (i) if the unit is a single unit residential complex, 1, and

  • (ii) in any other case, the unit’s percentage of total floor space; and

  B

  is the greater of $350,000 and

  • (i) if the residential unit is a single unit residential complex or a residential condominium unit, the fair market value of the residential unit at the particular time at which tax first becomes payable in respect of the purchase from the supplier or tax in respect of the deemed purchase is deemed to have been paid by the cooperative, and

  • (ii) in any other case, the amount determined by the formula

    B₁ × B₂

    where

    B₁

    is the unit’s percentage of total floor space, and

    B₂

    is the fair market value of the residential complex at the particular time.

• Marginal note:Land leased for residential purposes — Ontario

  (9) Subject subsections (13) and (14), if a person is entitled to claim a rebate under subsection 256.2(6) of the Act in respect of an exempt supply of land situated in Ontario, or the person would be so entitled if the amount determined for B in the formula in that subsection were less than $112,500, for the purposes of subsection 256.21(1) of the Act, the person is a prescribed person and the amount of the rebate in respect of the land under that subsection is equal to

  • (a) in the case of a supply of a site in a residential trailer park or in an addition to a residential trailer park, the lesser of $7,920 multiplied by the total number of sites in the park or addition, as the case may be, and

    • (i) if the person is deemed to have paid tax calculated on the fair market value of the park or addition in respect of the taxable supply referred to in subparagraph 256.2(6)(a)(ii) of the Act, 75% of the tax under subsection 165(2) of the Act that is deemed to have been paid in respect of that supply, or

    • (ii) if the person is deemed to have paid tax at any time equal to the basic tax content of the park or addition in respect of the taxable supply referred to in subparagraph 256.2(6)(a)(ii) of the Act, 75% of the provincial portion of the basic tax content of the park or addition at that time; and

  • (b) in any other case, the lesser of $7,920 and

    • (i) if the person is deemed to have paid tax calculated on the fair market value of the land in respect of the taxable supply referred to in subparagraph 256.2(6)(a)(ii) of the Act, 75% of the tax under subsection 165(2) of the Act that is deemed to have been paid in respect of that supply, or

    • (ii) if the person is deemed to have paid tax at any time equal to the basic tax content of the land in respect of the taxable supply referred to in subparagraph 256.2(6)(a)(ii) of the Act, 75% of the provincial portion of the basic tax content of the land at that time.

• Marginal note:Land leased for residential purposes — Newfoundland and Labrador

  (10) Subject to subsections (13) and (14), if a person is entitled to claim a rebate under subsection 256.2(6) of the Act in respect of an exempt supply of land situated in Newfoundland and Labrador, for the purposes of subsection 256.21(1) of the Act, the person is a prescribed person and the amount of the rebate in respect of the land under that subsection is equal to the amount determined by the formula

  A × ($112,500 − B)/$25,000

  where

  A

  is

  • (i) in the case of a taxable supply in respect of which the person is deemed to have paid tax calculated on the fair market value of the land, 36% of the tax under subsection 165(2) of the Act that is deemed to have been paid in respect of that supply, and

  • (ii) in the case of a taxable supply in respect of which the person is deemed to have paid tax equal to the basic tax content of the land, 36% of the provincial portion of the basic tax content of the land at the time at which the person is deemed to have paid the tax in respect of the taxable supply; and

  B

  is the greater of $87,500 and

  • (i) in the case of a supply of land included in paragraph 7(a) of Part I of Schedule V to the Act, the fair market value of the land at the time at which the person is deemed to have paid tax in respect of the taxable supply, and

  • (ii) in the case of a supply of a site in a residential trailer park or in an addition to a residential trailer park, the fair market value, at the time at which the person is deemed to have paid the tax in respect of the taxable supply, of the park or addition, as the case may be, divided by the total number of sites in the park or addition, as the case may be, at that time.

• Marginal note:Application for rebate

  (11) For the purposes of subsection 256.21(2) of the Act, an application for a rebate, the amount of which is determined under this section, must be filed within two years after,

  • (a) in the case of a rebate in respect of a residential unit the amount of which is determined under any of subsections (3) to (6), the end of the month in which tax first becomes payable by the person, or is deemed to have been paid by the person, in respect of the unit or interest in the unit or in respect of the residential complex or addition, or interest therein, in which the unit is situated, as the case may be;

  • (b) in the case of a rebate the amount of which is determined under subsection (7) or (8), the end of the month in which the person makes the exempt supply referred to in that subsection; and

  • (c) in the case of a rebate the amount of which is determined under subsection (9) or (10), the end of the month in which the person is deemed to have paid the tax referred to in that subsection.

• (11.1) [Repealed, SOR/2012-191, s. 40]

• Marginal note:Prescribed circumstances

  (12) The following circumstances are prescribed for the purposes of subsection 256.21(1) of the Act in respect of any rebate, the amount of which is determined under this section, to a person:

  • (a) if the rebate is in respect of a taxable supply received by the person from another person, the person has paid all of the tax payable in respect of that supply;

  • (b) if the rebate is in respect of a taxable supply in respect of which the person is deemed to have collected tax in a reporting period of the person, the person has reported the tax in the person’s return under Division V of Part IX of the Act for the reporting period and has remitted all net tax remittable, if any, as reported in that return;

  • (c) no amount of tax included in determining the rebate would otherwise be included in determining a rebate of the person under section 256.1 of the Act or in determining a rebate of the person under section 256.21 of the Act, the amount of which is determined under any of sections 41, 43, 45 and 46; and

  • (d) no amount of tax that would otherwise be included in determining the rebate is included in determining a rebate of the person under section 259 of the Act.

• Marginal note:Application of subsection 256.2(9) of Act

  (12.1) If, in the absence of this subsection, a rebate under subsection 256.21(1) of the Act in respect of real property would not be payable to a person only because all or part of the tax included in determining the amount of a particular rebate in respect of the real property under section 256.2 of the Act would otherwise be included in determining the amount of a rebate of the person under section 259 of the Act, for the purpose of applying this section in respect of the real property, the person is deemed to be entitled to claim the particular rebate.

• Marginal note:Restriction

  (12.2) If a person is entitled to include an amount of tax in determining, under this section, the amount of a particular rebate payable under subsection 256.21(1) of the Act in respect of real property and the person includes all or part of the amount of tax in determining the amount of a rebate of the person under section 259 of the Act that is claimed by the person at any time, for the purpose of applying section 256.21 of the Act in respect of the real property, the person is deemed to have never been entitled to include the amount of tax in determining the amount of the particular rebate.

• Marginal note:Special rules

  (13) For the purposes of this section, subsection 256.2(8) of the Act applies with any necessary modifications.

• Marginal note:Restrictions

  (14) In determining under this section the amount of a rebate payable to a person under subsection 256.21(1) of the Act, there shall not be included any amount of tax that the person is, under an Act of Parliament (other than the Act) or any other law,

  • (a) not required to pay or remit; or

  • (b) entitled to recover by way of a rebate, refund or remission.

• Marginal note:Exception — prescribed person

  (15) If, in the absence of this subsection, a person would be, under subsection (3), a prescribed person for the purposes of subsection 256.21(1) of the Act in respect of a qualifying residential unit (other than a unit located in a multiple unit residential complex) and, within one year after the unit is first occupied as a place of residence after the construction or last substantial renovation of the unit was substantially completed, the person makes a supply by way of sale (other than a supply deemed under section 183 or 184 of the Act to have been made) of the unit to a purchaser who is not acquiring the unit for use as the primary place of residence of the purchaser or of a relation of the purchaser, the person is deemed never to have been a prescribed person under subsection (3) for the purposes of subsection 256.21(1) of the Act in respect of the qualifying residential unit.