Qualifying for the New Residential Rental Property Rebate
Owners and landlords of new residential properties may be eligible for a rebate on the GST/HST paid on the property. This is called the New Residential Rental Property Rebate (NRPR) and you must apply to receive this rebate from the Canada Revenue Agency (CRA).
You may be eligible for this rebate if:
- You purchased a new rental property or substantially renovated an existing rental property
- You built your own residential rental property
- You made an addition to an multiple-unit rental complex
- You are a builder who sold a residential unit and leased the related land to an individual and accounted for the GST/HST under self-supply rules
- You made an exempt lease of land used for residential purposes and accounted for the GST/HST under the self-supply or change-in-use rules
You qualify for the rebate if the first people to live in the property are tenants, and these tenants cannot include the landlord. In addition, the rental agreement must be intended for long-term use as a residence.
When you purchase the property to rent it out, the builder or developer is not able to apply for the GST/HST rebate on your behalf, which they would do if you had purchased the property to be your primary residence.
The rebate goes to the person who paid the GST or HST on the property. You do not need to be a GST/HST registrant in order to apply for this rebate.
Applying for the New Residential Rental Property Rebate
When you apply for the NRPR, you need to send appropriate documentation to the CRA along with your application. The specific documents that you are required to submit are listed on the application forms, which are available on the CRA website.
The CRA may delay or deny the application if the requested documents are not submitted with your application, the application form is not properly completed, or the rebate calculation is incorrect.
You should also keep a copy of all completed forms as well as the original receipts, contracts, agreements, and invoices. Send a copy to the CRA. As with all tax documents, you must keep these forms and all original documents for six years after the end of the year to which they relate. The CRA may ask to see them as part of an audit.
Communicating with the CRA is almost always a complicated process. If you have any difficulties relating to your New Residential Rental Property Rebate application, please contact us at 1-888-868-1400 to discuss your situation and find out how we can help.