For GST/HST purposes, the term builder has a very specific meaning that is not limited to a person who physically constructs housing.
Builder, for the purpose of the GST/HST new housing rebate, generally includes a person who is in the business of constructing or substantially renovating houses for sale. The house may be on land owned or leased by that builder. The term builder may also include the following:
A person you hire to provide construction services on land you lease or own, and that does not have an interest in that land, is not generally considered to be a builder. For example, a contractor you hire to build your new house, or substantially renovate your existing house, on land you own is not considered to be the builder.
What is a house for purposes of the new housing rebate?A house generally includes a detached or semi-detached single-unit house, a duplex, a condominium unit, a townhouse, a unit in a co-operative housing corporation, a mobile home (including a modular home), and a floating home. In very limited circumstances, a house may include a recreational unit that has been affixed to land and modified to include the characteristics of a house. For more information, see GST/HST Policy Statement P-104, Supply of Land for Recreational Units Such as Mini-homes, Park Model Trailers, and Travel Trailers.
A house may also include nearby buildings such as a detached garage or shed, plus up to one-half hectare (1.23 acres) of the land around and underneath them all, that is reasonably necessary for the use and enjoyment of the housing as a place of residence.
In limited cases, we may consider the amount of land that is reasonably necessary for the use and enjoyment of the house as a place of residence to be more than one-half hectare (for example, when a municipality imposes a minimum lot size or where excess land is necessary to access public roads).
A house may also include a bed and breakfast or similar establishment where rooms are rented for short-term accommodation to the public. However, to be eligible for a new housing rebate for the whole building in these cases, the building has to be used more than 50% as the primary place of residence of you or your relation, either individually or in combination. If 50% or less of the house that includes the bed and breakfast is used as your primary place of residence, or that of a relation, only the part of the building that is the primary place of residence would be eligible for the new housing rebate.
Primary place of residenceOne of the main conditions for a new housing rebate to be available is that you must buy or build the house for use as your or your relation's primary place of residence.
Your primary place of residence is generally a house that you own, jointly or otherwise, and that you intend to live in on a permanent basis. You may have more than one place of residence, but you are considered to have only one primary place of residence.
NoteIf you buy or build a new house in Canada but your primary place of residence remains outside Canada, then your house in Canada would be a secondary place of residence and would not qualify for the new housing rebate.
The following are examples of some of the factors we may consider to determine whether a house is your or your relation's primary place of residence for purposes of the new housing rebate:
For rebate purposes, a house is not your primary place of residence if, for example, your intention is to use the house as your primary place of residence upon some more distant occasion, such as retirement. Further, a recreational cottage or an investment property is not your primary place of residence for rebate purposes. No new housing rebate is available in these cases.
Builder, for the purpose of the GST/HST new housing rebate, generally includes a person who is in the business of constructing or substantially renovating houses for sale. The house may be on land owned or leased by that builder. The term builder may also include the following:
- a manufacturer or vendor of a new mobile home or floating home;
- a person who buys a previously unoccupied new house for resale;
- a person who acquires an interest in a house while the house is under construction or substantial renovation, and completes or engages another person to complete the construction or substantial renovation; or
- a person who has converted a non-residential property into a house without substantially renovating the property.
A person you hire to provide construction services on land you lease or own, and that does not have an interest in that land, is not generally considered to be a builder. For example, a contractor you hire to build your new house, or substantially renovate your existing house, on land you own is not considered to be the builder.
What is a house for purposes of the new housing rebate?A house generally includes a detached or semi-detached single-unit house, a duplex, a condominium unit, a townhouse, a unit in a co-operative housing corporation, a mobile home (including a modular home), and a floating home. In very limited circumstances, a house may include a recreational unit that has been affixed to land and modified to include the characteristics of a house. For more information, see GST/HST Policy Statement P-104, Supply of Land for Recreational Units Such as Mini-homes, Park Model Trailers, and Travel Trailers.
A house may also include nearby buildings such as a detached garage or shed, plus up to one-half hectare (1.23 acres) of the land around and underneath them all, that is reasonably necessary for the use and enjoyment of the housing as a place of residence.
In limited cases, we may consider the amount of land that is reasonably necessary for the use and enjoyment of the house as a place of residence to be more than one-half hectare (for example, when a municipality imposes a minimum lot size or where excess land is necessary to access public roads).
A house may also include a bed and breakfast or similar establishment where rooms are rented for short-term accommodation to the public. However, to be eligible for a new housing rebate for the whole building in these cases, the building has to be used more than 50% as the primary place of residence of you or your relation, either individually or in combination. If 50% or less of the house that includes the bed and breakfast is used as your primary place of residence, or that of a relation, only the part of the building that is the primary place of residence would be eligible for the new housing rebate.
Primary place of residenceOne of the main conditions for a new housing rebate to be available is that you must buy or build the house for use as your or your relation's primary place of residence.
Your primary place of residence is generally a house that you own, jointly or otherwise, and that you intend to live in on a permanent basis. You may have more than one place of residence, but you are considered to have only one primary place of residence.
NoteIf you buy or build a new house in Canada but your primary place of residence remains outside Canada, then your house in Canada would be a secondary place of residence and would not qualify for the new housing rebate.
The following are examples of some of the factors we may consider to determine whether a house is your or your relation's primary place of residence for purposes of the new housing rebate:
- whether you consider the house as your main residence;
- the length of time you inhabit the premises; and
- the designation of that address on personal and public records.
For rebate purposes, a house is not your primary place of residence if, for example, your intention is to use the house as your primary place of residence upon some more distant occasion, such as retirement. Further, a recreational cottage or an investment property is not your primary place of residence for rebate purposes. No new housing rebate is available in these cases.