Getting ready to apply for a GST/HST tax rebate
The HST Rebate was introduced in 2010 with the aim to provide assistance to people living in Canada. To be more precise, the harmonized sales tax helps buyers with a portion of the transaction expenses as long as they meet certain conditions. The fact is that if you are buying or renovating a home, then you are eligible for a refund from the behalf of the government. Things seem simple enough, yet it seems that most people are confused about the GST/HST deduction. Those concerned with an allocation should resort to dedicated experts such as Rebate4u who can explain the process. Nonetheless, before talking to trained professionals, it is necessary to have a basic understanding of the matter.
Explaining the rebate
In Canada, suppliers charge the GST/HST on taxable goods. The reimbursement that is sponsored by the government allows buyers to recover part of the GST, namely the goods and services tax, or the federal portion of the HST, in other words the harmonized sales tax. People who are eligible for this kind of financial alleviation have the opportunity of recovering their money by claiming a rebate. It is important to specify that the GST/HST refund only applies to new residential houses and condos, and not resale properties. Buyers qualify only for reimbursements for the aforementioned cases, yet the applications that they have to file are distinct.
Rules governing the tax
Undoubtedly, there are eligibility requirements that have to be met. No matter if you buy a new home or condominium, you have to make it your primary place of residence. This means that you or your immediate family have to use the dwelling as a main residence. Of course, there are a number of other factors that are considered, besides your intention of using the unit as a main residence. Pay attention to the fact that is someone owns a small portion of the home, you automatically do not qualify for a refund. If you do qualify, you can expect a considerable amount of money back from the government.
Properties that qualify for the rebate
If you are curious to know which homes and renovations are eligible, you should know that the list is long. Detached and semi-detached houses, condominiums, single units, duplexes and many other properties all trigger eligibility for this kind of rebate. Nonetheless, the type of home is not as important as the intention of the buyer or builder. It is essential to keep in mind that the intention only matters at the time of the transaction. Should misunderstandings occur, you can indicate your situation to the CRA.
Applying for the GST/HST rebate
Generally speaking, you are required to pay the full amount at the closing of the transaction. In the case that the builder has not claimed the rebate at the time of the sale, you have the possibility of doing this yourself. Yet, remember that you can apply for the refund within two years. After this date, you will not be able to do anything with the documents you have just gathered. When in doubt about what to do, it is always better to get the help of dedicated professionals.