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

Regulations are current to 2019-08-28 and last amended on 2019-03-04. Previous Versions

PART 8New Housing Rebates (continued)

DIVISION 3New Housing Rebates for Building Only (continued)

Marginal note:Rebate in Ontario

  •  (1) If an individual is entitled to claim a rebate under subsection 254.1(2) of the Act, or to be paid or credited the amount of such a rebate under subsection 254.1(4) of the Act, in respect of a building or part of it in which a residential unit forming part of a residential complex in Ontario is situated, or would be so entitled if the fair market value of the complex, at the time possession of the complex is given to the individual under the agreement for the supply of the complex to the individual, were less than $508,500, 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 complex under that subsection is equal to the lesser of $24,000 and 5.31% of the total consideration (within the meaning of paragraph 254.1(2)(h) of the Act) in respect of the complex.

  • (2) [Repealed, SOR/2012-191, s. 36]

  • Marginal note:Application for rebate

    (3) For the purposes of subsection 256.21(2) of the Act, an application for a rebate, the amount of which is determined under subsection (1), must be filed within two years after the day on which possession of the complex is transferred to the individual.

  • Marginal note:Application to builder

    (4) For the purposes of the application of subsection 256.21(3) of the Act in respect of a rebate in relation to a building or part of it in which a residential unit forming part of a residential complex is situated,

    • (a) the builder of the complex is a prescribed person;

    • (b) an individual who is a prescribed person under subsection (1) in relation to the complex is an individual of a prescribed class; and

    • (c) the following circumstances are prescribed circumstances:

      • (i) the builder makes a supply of the complex to an individual under an agreement referred to in paragraph 254.1(2)(a) of the Act and transfers possession of the complex to the individual under the agreement,

      • (ii) the builder agrees to pay to, or to credit to or in favour of, the individual any rebate under subsection 256.21(1) of the Act, the amount of which is determined under subsection (1), that is payable to the individual in respect of the complex, and

      • (iii) the individual, within two years after the day on which possession of the complex is transferred to the individual under the agreement for the supply, submits an application, in accordance with subsection 256.21(3) of the Act, for the rebate.

  • SOR/2012-191, s. 36

DIVISION 4Cooperative Housing Rebates

Marginal note:Amounts and rates for participating provinces

 In applying subsection 255(2) of the Act in respect of

  • (a) a residential complex situated in Ontario,

    • (i) the references in that subsection to “$472,500” are to be read as references to “$508,500”,

    • (ii) the references in that subsection to “$367,500” are to be read as references to “$395,500”,

    • (iii) the reference in that subsection to “$105,000” is to be read as a reference to “$113,000”,

    • (iv) the reference in paragraph (g) of that subsection to “1.71%” is to be read as a reference to “the lesser of $6,300 and 1.60%”, and

    • (v) the reference in the description of A in the formula in paragraph (h) of that subsection to “1.71%” is to be read as a reference to “1.60%”;

  • (b) a residential complex situated in Nova Scotia,

    • (i) the references in that subsection to “$472,500” are to be read as references to “$517,500”,

    • (ii) the references in that subsection to “$367,500” are to be read as references to “$402,500”,

    • (iii) the reference in that subsection to “$105,000” is to be read as a reference to “$115,000”,

    • (iv) the reference in paragraph (g) of that subsection to “1.71%” is to be read as a reference to “the lesser of $6,300 and 1.57%”, and

    • (v) the reference in the description of A in the formula in paragraph (h) of that subsection to “1.71%” is to be read as a reference to “1.57%”;

  • (c) a residential complex situated in New Brunswick,

    • (i) the references in that subsection to “$472,500” are to be read as references to “$517,500”,

    • (ii) the references in that subsection to “$367,500” are to be read as references to “$402,500”,

    • (iii) the reference in that subsection to “$105,000” is to be read as a reference to “$115,000”,

    • (iv) the reference in paragraph (g) of that subsection to “1.71%” is to be read as a reference to “the lesser of $6,300 and 1.57%”, and

    • (v) the reference in the description of A in the formula in paragraph (h) of that subsection to “1.71%” is to be read as a reference to “1.57%”;

  • (d) [Repealed, SOR/2012-191, s. 37]

  • (d.1) a residential complex situated in Prince Edward Island,

    • (i) the references in that subsection to “$472,500” are to be read as references to “$517,500”,

    • (ii) the references in that subsection to “$367,500” are to be read as references to “$402,500”,

    • (iii) the reference in that subsection to “$105,000” is to be read as a reference to “$115,000”,

    • (iv) the reference in paragraph (g) of that subsection to “1.71%” is to be read as a reference to “the lesser of $6,300 and 1.57%”, and

    • (v) the reference in the description of A in the formula in paragraph (h) of that subsection to “1.71%” is to be read as a reference to “1.57%”; and

  • (e) a residential complex situated in Newfoundland and Labrador,

    • (i) the references in that subsection to “$472,500” are to be read as references to “$517,500”,

    • (ii) the references in that subsection to “$367,500” are to be read as references to “$402,500”,

    • (iii) the reference in that subsection to “$105,000” is to be read as a reference to “$115,000”,

    • (iv) the reference in paragraph (g) of that subsection to “1.71%” is to be read as a reference to “the lesser of $6,300 and 1.57%”, and

    • (v) the reference in the description of A in the formula in paragraph (h) of that subsection to “1.71%” is to be read as a reference to “1.57%”.

  • SOR/2012-191, s. 37
  • SOR/2013-44, s. 34
  • SOR/2016-119, s. 15
  • SOR/2016-212, s. 14

Marginal note:Definition of relation

  •  (1) In this section, relation has the same meaning as in subsection 255(1) of the Act.

  • Marginal note:Rebate in Ontario

    (2) For the purposes of subsection 256.21(1) of the Act, an individual is a prescribed person and the amount of the rebate under that subsection in respect of a share of the capital stock of a cooperative housing corporation is equal to the lesser of $24,000 and 5.31% of the total consideration referred to in paragraph (c), if

    • (a) the individual has acquired the share for the purpose of using a residential unit in a residential complex of the corporation that is situated in Ontario as the primary place of residence of the individual or of a relation of the individual;

    • (b) the corporation has paid tax under subsection 165(2) of the Act in respect of a taxable supply to the corporation of the complex; and

    • (c) the individual is entitled to claim a rebate under subsection 255(2) of the Act in respect of the share or would be so entitled if the total (in this subsection referred to as the “total consideration”) of all amounts, each of which is the consideration payable for the supply to the individual of the share or an interest in the corporation, complex or unit, were less than $508,500.

  • (3) [Repealed, SOR/2012-191, s. 38]

  • Marginal note:Application for rebate

    (4) For the purposes of subsection 256.21(2) of the Act, an application for a rebate, the amount of which is determined under subsection (2), must be filed within two years after the day on which ownership of the share is transferred to the individual.

  • (5) [Repealed, SOR/2012-191, s. 38]

  • SOR/2012-191, s. 38

DIVISION 5Rebates for Owner-built Homes

Marginal note:Definitions

  •  (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.

  • SOR/2012-191, s. 39
 
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