New Harmonized Value-added Tax System Regulations, No. 2

Marginal note:Definitions

• 41 (1) In this section, relation and single unit residential complex have the same meanings as in subsection 254(1) of the Act.

• Marginal note:Rebate in Ontario

  (2) If an individual is entitled to claim a rebate under subsection 254(2) of the Act in respect of a residential complex that is a single unit residential complex, or a residential condominium unit, acquired for use in Ontario as the primary place of residence of the individual or of a relation of the individual, or the individual would be so entitled if the total consideration (within the meaning of paragraph 254(2)(c) of the Act) in respect of the complex were less than $450,000, for the purposes of subsection 256.21(1) of the Act, the individual is a prescribed person and the amount of a rebate in respect of the complex under that subsection is equal to the lesser of $24,000 and the amount determined by the formula

  A × B

  where

  A

  is 75%; and

  B

  is the total of all tax under subsection 165(2) of the Act paid in respect of the supply of the complex to the individual or in respect of any other supply to the individual of an interest in the complex.

• Marginal note:Rebate in British Columbia

  (3) If an individual is entitled to claim a rebate under subsection 254(2) of the Act in respect of a residential complex that is a single unit residential complex, or a residential condominium unit, acquired for use in British Columbia as the primary place of residence of the individual or of a relation of the individual, or the individual would be so entitled if the total consideration (within the meaning of paragraph 254(2)(c) of the Act) in respect of the complex were less than $450,000, 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 $26,250 and the amount determined by the formula

  A × B

  where

  A

  is 71.43%; and

  B

  is the total of all tax under subsection 165(2) of the Act paid in respect of the supply of the complex to the individual or in respect of any other supply to the individual of an interest in the complex.

• 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) or (3), must be filed within two years after the day on which ownership of the complex is transferred to the individual.

• Marginal note:Restriction

  (5) The Minister shall pay a rebate in respect of a complex to an individual under subsection 256.21(1) of the Act, the amount of which is determined under subsection (2) or (3), only if the individual does not make an application for a rebate in respect of the complex under section 256(2) of the Act.

• Marginal note:Application to builder

  (6) For the purposes of the application of subsection 256.21(3) of the Act in respect of a rebate in relation to a residential complex that is a single unit residential complex or a residential condominium unit,

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

  • (b) an individual who is a prescribed person under subsection (2) or (3) in respect of the complex is an individual of a prescribed class; and

  • (c) the following circumstances are prescribed circumstances:

    • (i) the builder makes a taxable supply of the complex by way of sale to an individual described in paragraph (b) and transfers ownership of the complex to the individual under the agreement for the supply,

    • (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 (2) or (3), that is payable to the individual in respect of the complex,

    • (iii) tax under Division II of Part IX of the Act has been paid, or is payable, by the individual in respect of the supply,

    • (iv) the individual, within two years after the day on which ownership 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, and

    • (v) the tax payable in respect of the supply has not been paid at the time the individual submits an application to the builder for the rebate and, if the individual had paid the tax and made an application for the rebate, the rebate would have been payable to the individual under subsection 256.21(1) of the Act.