Draft Real Property (GST/HST) Regulations

Interpretation

Marginal note:Definitions

1 The following definitions apply in these Regulations.

Act

Act means the Excise Tax Act. (Loi)

qualifying residential unit

qualifying residential unit has the same meaning as in subsection 256.2(1) of the Act. (habitation admissible)

Marginal note:Eligible purpose

2 For the purposes of these Regulations, a residential unit is held for an eligible purpose by a person if the residential unit is held by the person for a purpose set out in clause (a)(ii)(A) or (A.1) of the definition qualifying residential unit in subsection 256.2(1) of the Act.

Marginal note:Excluded housing supply

3 For the purposes of these Regulations, a taxable supply is an excluded housing supply in respect of a residential complex if the residential complex is a substantially renovated residential complex and it is the case that

• (a) the taxable supply is deemed to have been made and received under subsection 191(3) of the Act as a result of the substantial renovation of the residential complex and the residential complex was held or used as a residential complex immediately before the beginning of the substantial renovation;

• (b) the taxable supply is a supply by way of sale of the residential complex to a person that is not a builder of the residential complex and the residential complex

  • (i) has not been occupied by an individual as a place of residence or lodging after the substantial renovation is substantially completed, and

  • (ii) was held or used as a residential complex immediately before the beginning of the substantial renovation; or

• (c) the taxable supply is a supply of an interest in the residential complex and the conditions in respect of the residential complex set out in subparagraphs (b)(i) and (ii) are met.

Rebates for Purpose-Built Rental Housing

Marginal note:Prescribed conditions — purpose-built rental housing

• 4 (1) For the purposes of subsection 256.2(3.1) of the Act, the following are prescribed conditions:

  • (a) in the case of a taxable supply described in paragraph 256.2(3.1)(a) of the Act,

    • (i) the taxable supply is a supply of an addition to a multiple unit residential complex, or

    • (ii) the taxable supply is a supply of a residential complex, or an interest in a residential complex, and is not an excluded housing supply in respect of the residential complex; and

  • (b) in the case of a taxable supply described in paragraph 256.2(3.1)(b) of the Act, the property that is converted for use as the residential complex was, on September 13, 2023,

    • (i) in existence,

    • (ii) not in the process of being constructed, and

    • (iii) not being used as a residential complex.

• Marginal note:Prescribed property — residential complex

  (2) For the purposes of subsection 256.2(3.1) of the Act, in respect of a taxable supply received by a person that is a purchase from the supplier (within the meaning of subparagraph 256.2(3)(a)(i) of the Act) of a residential complex or an interest in a residential complex or that is a deemed purchase (within the meaning of subparagraph 256.2(3)(a)(ii) of the Act) of a residential complex, the residential complex or interest, as the case may be, is prescribed property if the residential complex is a multiple unit residential complex and the following conditions are met:

  • (a) the multiple unit residential complex includes

    • (i) four or more residential units and at least four of those units each contains private kitchen facilities, a private bath and a private living area, or

    • (ii) 10 or more residential units; and

  • (b) all or substantially all of the residential units that form part of the multiple unit residential complex are, at the particular time referred to in paragraph 256.2(3)(b) of the Act, qualifying residential units of the person that are held by the person for an eligible purpose.

• Marginal note:Prescribed property — addition

  (3) For the purposes of subsection 256.2(3.1) of the Act, in respect of a taxable supply received by a person that is a deemed purchase (within the meaning of subparagraph 256.2(3)(a)(ii) of the Act) of an addition to a multiple unit residential complex, the addition is prescribed property if the following conditions are met:

  • (a) the addition includes

    • (i) four or more residential units and at least four of those units each contains private kitchen facilities, a private bath and a private living area, or

    • (ii) 10 or more residential units;

  • (b) all or substantially all of the residential units that form part of the addition are, at the particular time referred to in paragraph 256.2(3)(b) of the Act, qualifying residential units of the person that are held by the person for an eligible purpose; and

  • (c) all or substantially all of the residential units that form part of the multiple unit residential complex and the addition combined are held by the person at the particular time for an eligible purpose.

5 These Regulations are deemed to have come into force on September 14, 2023.