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:Ontario additional rebate before April 2027

  (2.01) For the purposes of subsection 256.21(1) of the Act, if

  • (a) an individual is entitled to claim a rebate under subsection 256.21(1) of the Act, the amount of which is determined under subsection (2), in respect of a taxable supply by way of sale of a residential complex made by a builder of the residential complex to the individual,

  • (b) the agreement of purchase and sale referred to in paragraph 254(2)(b) of the Act of the residential complex is entered into between the builder and the individual after March 2026 and before April 2027,

  • (c) 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 residential complex or for any other taxable supply to the individual of an interest in the residential complex, is less than $1,850,000,

  • (d) the construction or substantial renovation of the residential complex begins before 2029 and is substantially completed before 2032, and

  • (e) tax becomes payable in respect of the supply to the individual of the residential complex before 2033,

  the individual is a prescribed person and the amount of a rebate in respect of the residential complex under subsection 256.21(1) of the Act — in addition to the amounts of any rebates payable under subsection 256.21(1) of the Act, the amounts of which are determined under subsection (2) or (2.1), that the individual is entitled to claim in respect of the residential complex — is equal to

  • (f) if the total consideration is not more than $1,500,000, the amount determined by the formula

    A − B

    where

    A

    is the lesser of $80,000 and the total of all tax under subsection 165(2) of the Act paid in respect of the supply of the residential complex to the individual or in respect of any other supply to the individual of an interest in the residential complex, and

    B

    is the amount of any rebate under subsection 256.21(1) of the Act, the amount of which is determined under subsection (2), that the individual is entitled to claim in respect of the residential complex, and

  • (g) if the total consideration is more than $1,500,000 but less than $1,850,000, the amount determined by the formula

    (C − D) × ($1,850,000 − E) ÷ $350,000

    where

    C

    is the lesser of $80,000 and the total of all tax under subsection 165(2) of the Act paid in respect of the supply of the residential complex to the individual or in respect of any other supply to the individual of an interest in the residential complex,

    D

    is the amount of any rebate under subsection 256.21(1) of the Act, the amount of which is determined under subsection (2), that the individual is entitled to claim in respect of the residential complex, and

    E

    is the total consideration.

• Marginal note:Additional rebate in Ontario — first-time home buyer

  (2.1) For the purposes of subsection 256.21(1) of the Act, if an individual is entitled to claim a rebate under subsection 254(2.1) of the Act in respect of a residential complex acquired for use in Ontario as the primary place of residence of the individual, the individual is a prescribed person and the amount of a rebate in respect of the residential complex under subsection 256.21(1) of the Act — in addition to the amount of any rebate payable under subsection 256.21(1) of the Act, the amount of which is determined under subsection (2), that the individual is entitled to claim in respect of the residential complex — is equal to

  • (a) 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 residential complex or for any other taxable supply to the individual of an interest in the residential complex, is not more than $1,000,000, the amount determined by the formula

    A − B

    where

    A

    is the lesser of $80,000 and the total of all tax under subsection 165(2) of the Act paid in respect of the supply of the residential complex to the individual or in respect of any other supply to the individual of an interest in the residential complex, and

    B

    is the amount of any rebate under subsection 256.21(1) of the Act, the amount of which is determined under subsection (2), that the individual is entitled to claim in respect of the residential complex; and

  • (b) if the total consideration is more than $1,000,000 but less than $1,500,000, the amount determined by the formula

    (C × (($1,500,000 − D) ÷ $500,000)) − E

    where

    C

    is the lesser of $80,000 and the total of all tax under subsection 165(2) of the Act paid in respect of the supply of the residential complex to the individual or in respect of any other supply to the individual of an interest in the residential complex,

    D

    is the total consideration, and

    E

    is the amount of any rebate under subsection 256.21(1) of the Act, the amount of which is determined under subsection (2), that the individual is entitled to claim in respect of the residential complex.

• Marginal note:Maximum amount of rebates — Ontario

  (2.2) The total of all amounts that the Minister pays to an individual in respect of a residential complex — each of which is an amount of a rebate under subsection 256.21(1) of the Act in respect of the residential complex, the amount of which is determined under subsection (2), (2.01) or (2.1) — shall not exceed the lesser of $80,000 and the total of all tax under subsection 165(2) of the Act paid in respect of the supply of the residential complex to the individual or in respect of any other supply to the individual of an interest in the residential complex.

• (3) [Repealed, SOR/2012-191, s. 34]

• 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 any of subsections (2) to (2.1), must be filed within two years after the day on which ownership of the residential complex is transferred to the individual.

• Marginal note:Restriction

  (5) The Minister shall pay a rebate in respect of a residential complex to an individual under subsection 256.21(1) of the Act, the amount of which is determined under any of subsections (2) to (2.1), only if the individual does not make an application for a rebate in respect of the residential complex under subsection 256(2) of the Act and does not make an application for a rebate in respect of the residential complex under subsection 256(2.1) 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, the amount of which is determined under any of subsections (2) to (2.1),

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

  • (b) an individual who is a prescribed person under any of subsections (2) to (2.1), as the case may be, 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 any of subsections (2) to (2.1), as the case may be, 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.