Claiming GST/HST Rebates – A Complete Guide by a Montreal CPA Firm Near You

Introduction

GST/HST rebates are some of the most valuable—but most misunderstood—tax benefits available in Canada. Whether you’re a homeowner purchasing a new build, a landlord constructing or renovating rental property, a business paying GST/HST on eligible items, or a visitor to Canada making certain purchases, the government offers several rebate programs that can save thousands of dollars. However, each rebate has strict eligibility rules, precise documentation requirements, and rigid filing deadlines. Many taxpayers miss out simply because they don’t understand the criteria—or worse, they claim rebates incorrectly and end up owing CRA money after an audit. This guide explains the major GST/HST rebate programs in Canada, who qualifies, how to apply, and how to stay fully compliant.

Legal and Regulatory Framework

GST/HST rebate programs are established under the Excise Tax Act and related regulations. The most common rebate categories include:

1. GST/HST New Housing Rebate (NHR)

Available to individuals who:
• purchase a newly built home,
• build or substantially renovate their own home, or
• purchase shares in a newly built co-op housing unit.

Rules include:
• the home must be used as a primary residence,
• price limits apply (especially for the federal portion),
• strict occupancy and family-use rules,
• rebate must be claimed within 2 years of the closing date.

2. GST/HST New Residential Rental Property Rebate (NRRPR)

Available when a newly built or substantially renovated home is purchased for long-term rental purposes (not short-term rentals or Airbnb).
Landlords must:
• provide a 1-year lease (minimum),
• file the rebate after possession but before renting begins,
• meet usage and occupancy conditions required by CRA.

3. New Housing Transitional Rebates

For builder agreements straddling GST/HST implementation dates (historically used during HST transitions).

4. GST Visitors’ Rebate (Limited Programs)

While the general visitor rebate program was eliminated, certain narrow rebates still exist for:
• tour packages,
• foreign conventions,
• specific travel sectors.

5. Public Service Body Rebates

Available for:
• charities,
• non-profits,
• municipalities,
• universities, schools, and hospitals.
These organizations receive rebates on a portion of the GST/HST they pay.

6. Provincial Rebates (Ontario & Atlantic HST Provinces)

Some provinces offer:
• provincial new housing rebates,
• rental rebates,
• transitional housing credits.

7. Input Tax Credits (ITCs) vs Rebates

ITCs apply to businesses with commercial activities, whereas rebates apply to:
• individuals,
• landlords,
• charities,
• qualifying organizations.

These legislative rules form the foundation of Canada’s GST/HST rebate system.

Key Court Decisions

Several court rulings underline CRA’s strict interpretation of rebate eligibility:

1. Kossowan v. Canada

The taxpayer’s New Housing Rebate was denied because the home was not used as the primary place of residence. Ownership alone is not enough—actual occupancy matters.

2. Siddiqui v. The Queen

CRA denied a rebate because the taxpayer attempted to claim a rental rebate for a home actually used for short-term rentals. The court upheld the denial.

3. Alterra Developments v. Canada

A builder attempted to classify units as long-term rentals to claim rebates. CRA successfully argued that the intention was resale, not rental.

4. Tremblay v. Canada

The New Housing Rebate was denied because the taxpayer missed filing deadlines. The court confirmed that rebate deadlines are strict and inflexible.

These cases demonstrate that CRA enforces rebate rules rigidly, often denying claims even when taxpayers make honest mistakes.

Why CRA Targets This Issue

CRA audits rebate claims aggressively because rebates are often misused or misunderstood. CRA flags:

• new housing rebates where the property is not used as a primary residence
• rental rebates linked to Airbnb or short-term rentals (ineligible)
• rebates filed late
• application forms with missing documentation
• discrepancies between purchase agreements and occupancy records
• individuals claiming rebates for relatives not meeting occupancy tests
• builders misclassifying properties
• landlords failing to meet lease requirements

CRA also cross-checks:
• land title registry data,
• utility accounts,
• postal records,
• Airbnb listings,
• building permits,
• income tax filings.

Because rebates often exceed $6,000–$30,000, CRA treats this as a high-risk compliance area.

Mackisen Strategy

At Mackisen CPA Montreal, we help taxpayers secure legitimate GST/HST rebates while preventing costly errors. Our rebate strategy includes:

1. Eligibility Review

• determining whether you qualify for the NHR or NRRPR
• analyzing occupancy and usage requirements
• identifying high-risk factors

2. Documentation Preparation

• gathering Agreements of Purchase and Sale
• preparing occupancy evidence (driver’s license, utility bills, insurance)
• securing residential lease agreements for rental rebate claims
• reviewing builder statements and municipal documents

3. Filing Your Rebate Correctly

• completing the correct forms (GST190, GST524, GST191, etc.)
• ensuring deadlines are met (often within 2 years)
• submitting through CRA’s approved channels

4. Audit Defence

• responding to CRA verification letters
• preparing proof of occupancy or rental use
• appealing denied rebate claims through Notice of Objection when warranted

5. Planning for Future Transactions

• advising developers and landlords on structuring transactions to maintain rebate eligibility
• analyzing GST/HST implications for flipping, assignments, or mixed-use properties

This ensures clients maximize rebates without risking CRA reassessments.

Real Client Experience

A first-time homeowner in Montreal was denied the new housing rebate because CRA doubted occupancy. We compiled utility records, insurance documents, lease termination evidence, and successfully restored the rebate.

A landlord purchasing new construction attempted to claim the New Housing Rebate instead of the Rental Rebate. CRA denied it. We corrected the filing and recovered the full NRRPR rebate.

A builder selling an assignment condo failed to consider GST/HST implications. CRA reassessed the buyer and seller. We restructured the transaction and minimized liability.

A real estate investor operating multiple Airbnb units filed for rental rebates—CRA denied them. We restructured their activity and corrected filings for future compliance.

Common Questions

Homeowners often ask whether they can claim both federal and provincial rebates. Yes—if they qualify, but rules differ.

Landlords ask whether Airbnb qualifies for the rental rebate. No—short-term rentals are not eligible.

Some ask whether family members living in the home qualify as occupancy. Only immediate-family scenarios meeting CRA tests.

Another question: Can rebates be filed late? No—deadlines are strict.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps individuals, landlords, and organizations claim GST/HST rebates accurately, efficiently, and with full CRA compliance. Whether buying new housing, investing in rentals, or managing properties, our expert team ensures clarity, precision, and complete protection.