New Harmonized Value-added Tax System Regulations, No. 2 (SOR/2010-151)

Marginal note:Rebate in Ontario

• 43 (1) If an individual is entitled to claim a rebate under subsection 254.1(2) of the Act in respect of a building or part of it in which a residential unit forming part of a residential complex in Ontario is situated, or would be so entitled if the fair market value of the complex, at the time possession of the complex is given to the individual under the agreement for the supply of the complex to the individual, were less than $508,500, for the purposes of subsection 256.21(1) of the Act, the individual is a prescribed person and the amount of the rebate in respect of the complex under that subsection is equal to the lesser of $24,000 and 5.31% of the total consideration (within the meaning of paragraph 254.1(2)(h) of the Act) in respect of the complex.

• Marginal note:Ontario additional rebate before April 2027

  (1.01) 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 (1), in respect of a residential complex,

  • (b) the agreement referred to in paragraph 254.1(2)(a) of the Act in respect of the residential complex is entered into between the individual and a builder of the residential complex after March 2026 and before April 2027,

  • (c) the fair market value of the residential complex, at the time at which possession of the residential complex is given to the individual under the agreement, is less than $2,090,500,

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

  • (e) the time referred to in paragraph (c) is 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 (1) or (1.1), that the individual is entitled to claim in respect of the residential complex — is equal to

  • (f) if the fair market value referred to in paragraph (c) is not more than $1,695,000, the amount determined by the formula

    A − B

    where

    A

    is the lesser of $80,000 and 7.08% of the total consideration (within the meaning of paragraph 254.1(2)(h) of the Act) in respect of 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 (1), that the individual is entitled to claim in respect of the residential complex, and

  • (g) if the fair market value referred to in paragraph (c) is more than $1,695,000 but less than $2,090,500, the amount determined by the formula

    (C − D) × ($2,090,500 − E) ÷ $395,500

    where

    C

    is the lesser of $80,000 and 7.08% of the total consideration (within the meaning of paragraph 254.1(2)(h) of the Act) in respect of 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 (1), that the individual is entitled to claim in respect of the residential complex, and

    E

    is the fair market value.

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

  (1.1) For the purposes of subsection 256.21(1) of the Act, if an individual is entitled to claim a rebate under subsection 254.1(2.1) of the Act in respect of a residential complex situated in Ontario, 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 (1), that the individual is entitled to claim in respect of the residential complex — is equal to

  • (a) if the fair market value of the residential complex, at the time possession of the residential complex is given to the individual under the agreement for the supply of the residential complex to the individual, is not more than $1,130,000, the amount determined by the formula

    A − B

    where

    A

    is the lesser of $80,000 and 7.08% of the total consideration (within the meaning of paragraph 254.1(2)(h) of the Act) in respect of 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 (1), that the individual is entitled to claim in respect of the residential complex; and

  • (b) if the fair market value referred to in paragraph (a) is more than $1,130,000 but less than $1,695,000, the amount determined by the formula

    (C × (($1,695,000 − D) ÷ $565,000)) − E

    where

    C

    is the lesser of $80,000 and 7.08% of the total consideration (within the meaning of paragraph 254.1(2)(h) of the Act) in respect of the residential complex,

    D

    is the fair market value, and

    E

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

• Marginal note:Maximum amount of rebates — Ontario

  (1.2) 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 (1), (1.01) or (1.1) — shall not exceed the lesser of $80,000 and 7.08% of the total consideration (within the meaning of paragraph 254.1(2)(h) of the Act) in respect of the residential complex.

• (2) [Repealed, SOR/2012-191, s. 36]

• Marginal note:Application for rebate

  (3) 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 (1) to (1.1), must be filed within two years after the day on which possession of the residential complex is transferred to the individual.

• Marginal note:Application to builder

  (4) 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 (1) to (1.1),

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

  • (b) an individual who is a prescribed person under any of subsections (1) to (1.1), as the case may be, in relation to the complex is an individual of a prescribed class; and

  • (c) the following circumstances are prescribed circumstances:

    • (i) the builder makes a supply of the complex to an individual under an agreement referred to in paragraph 254.1(2)(a) of the Act and transfers possession of the complex to the individual under the agreement,

    • (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 (1) to (1.1), as the case may be, that is payable to the individual in respect of the complex, and

    • (iii) the individual, within two years after the day on which possession 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.

DIVISION 4Cooperative Housing Rebates

Marginal note:Amounts and rates for participating provinces

44 In applying subsection 255(2) of the Act in respect of

• (a) a residential complex situated in Ontario,

  • (i) the references in that subsection to “$472,500” are to be read as references to “$508,500”,

  • (ii) the references in that subsection to “$367,500” are to be read as references to “$395,500”,

  • (iii) the reference in that subsection to “$105,000” is to be read as a reference to “$113,000”,

  • (iv) the reference in paragraph (g) of that subsection to “1.71%” is to be read as a reference to “the lesser of $6,300 and 1.60%”, and

  • (v) the reference in the description of A in the formula in paragraph (h) of that subsection to “1.71%” is to be read as a reference to “1.60%”;

• (b) a residential complex situated in Nova Scotia,

  • (i) the references in that subsection to “$472,500” are to be read as references to “$513,000”,

  • (ii) the references in that subsection to “$367,500” are to be read as references to “$399,000”,

  • (iii) the reference in that subsection to “$105,000” is to be read as a reference to “$114,000”,

  • (iv) the reference in paragraph (g) of that subsection to “1.71%” is to be read as a reference to “the lesser of $6,300 and 1.58%”, and

  • (v) the reference in the description of A in the formula in paragraph (h) of that subsection to “1.71%” is to be read as a reference to “1.58%”;

• (c) a residential complex situated in New Brunswick,

  • (i) the references in that subsection to “$472,500” are to be read as references to “$517,500”,

  • (ii) the references in that subsection to “$367,500” are to be read as references to “$402,500”,

  • (iii) the reference in that subsection to “$105,000” is to be read as a reference to “$115,000”,

  • (iv) the reference in paragraph (g) of that subsection to “1.71%” is to be read as a reference to “the lesser of $6,300 and 1.57%”, and

  • (v) the reference in the description of A in the formula in paragraph (h) of that subsection to “1.71%” is to be read as a reference to “1.57%”;

• (d) [Repealed, SOR/2012-191, s. 37]

• (d.1) a residential complex situated in Prince Edward Island,

  • (i) the references in that subsection to “$472,500” are to be read as references to “$517,500”,

  • (ii) the references in that subsection to “$367,500” are to be read as references to “$402,500”,

  • (iii) the reference in that subsection to “$105,000” is to be read as a reference to “$115,000”,

  • (iv) the reference in paragraph (g) of that subsection to “1.71%” is to be read as a reference to “the lesser of $6,300 and 1.57%”, and

  • (v) the reference in the description of A in the formula in paragraph (h) of that subsection to “1.71%” is to be read as a reference to “1.57%”; and

• (e) a residential complex situated in Newfoundland and Labrador,

  • (i) the references in that subsection to “$472,500” are to be read as references to “$517,500”,

  • (ii) the references in that subsection to “$367,500” are to be read as references to “$402,500”,

  • (iii) the reference in that subsection to “$105,000” is to be read as a reference to “$115,000”,

  • (iv) the reference in paragraph (g) of that subsection to “1.71%” is to be read as a reference to “the lesser of $6,300 and 1.57%”, and

  • (v) the reference in the description of A in the formula in paragraph (h) of that subsection to “1.71%” is to be read as a reference to “1.57%”.

Marginal note:Amounts and rates for participating provinces

44.1 In applying subsection 255(2.1) of the Act in respect of

• (a) a residential complex situated in Ontario,

  • (i) the references in that subsection to “$1,575,000” are to be read as references to “$1,695,000”,

  • (ii) the references in that subsection to “$1,050,000” are to be read as references to “$1,130,000”,

  • (iii) the reference in that subsection to “$525,000” is to be read as a reference to “$565,000”, and

  • (iv) the references in the description of A in the formula in paragraph (f) and in the description of C in the formula in paragraph (g) of that subsection to “4.77%” are to be read as references to “4.43%”;

• (b) a residential complex situated in Nova Scotia,

  • (i) the references in that subsection to “$1,575,000” are to be read as references to “$1,710,000”,

  • (ii) the references in that subsection to “$1,050,000” are to be read as references to “$1,140,000”,

  • (iii) the reference in that subsection to “$525,000” is to be read as a reference to “$570,000”, and

  • (iv) the references in the description of A in the formula in paragraph (f) and in the description of C in the formula in paragraph (g) of that subsection to “4.77%” are to be read as references to “4.39%”;

• (c) a residential complex situated in New Brunswick,

  • (i) the references in that subsection to “$1,575,000” are to be read as references to “$1,725,000”,

  • (ii) the references in that subsection to “$1,050,000” are to be read as references to “$1,150,000”,

  • (iii) the reference in that subsection to “$525,000” is to be read as a reference to “$575,000”, and

  • (iv) the references in the description of A in the formula in paragraph (f) and in the description of C in the formula in paragraph (g) of that subsection to “4.77%” are to be read as references to “4.35%”;

• (d) a residential complex situated in Prince Edward Island,

  • (i) the references in that subsection to “$1,575,000” are to be read as references to “$1,725,000”,

  • (ii) the references in that subsection to “$1,050,000” are to be read as references to “$1,150,000”,

  • (iii) the reference in that subsection to “$525,000” is to be read as a reference to “$575,000”, and

  • (iv) the references in the description of A in the formula in paragraph (f) and in the description of C in the formula in paragraph (g) of that subsection to “4.77%” are to be read as references to “4.35%”; and

• (e) a residential complex situated in Newfoundland and Labrador,

  • (i) the references in that subsection to “$1,575,000” are to be read as references to “$1,725,000”,

  • (ii) the references in that subsection to “$1,050,000” are to be read as references to “$1,150,000”,

  • (iii) the reference in that subsection to “$525,000” is to be read as a reference to “$575,000”, and

  • (iv) the references in the description of A in the formula in paragraph (f) and in the description of C in the formula in paragraph (g) of that subsection to “4.77%” are to be read as references to “4.35%”.

Marginal note:Definition of relation

• 45 (1) In this section, relation has the same meaning as in subsection 255(1) of the Act.

• Marginal note:Rebate in Ontario

  (2) For the purposes of subsection 256.21(1) of the Act, an individual is a prescribed person and the amount of the rebate under that subsection in respect of a share of the capital stock of a cooperative housing corporation is equal to the lesser of $24,000 and 5.31% of the total consideration referred to in paragraph (c), if

  • (a) the individual has acquired the share for the purpose of using a residential unit in a residential complex of the corporation that is situated in Ontario as the primary place of residence of the individual or of a relation of the individual;

  • (b) the corporation has paid tax under subsection 165(2) of the Act in respect of a taxable supply to the corporation of the complex; and

  • (c) the individual is entitled to claim a rebate under subsection 255(2) of the Act in respect of the share or would be so entitled 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 share or an interest in the corporation, complex or unit, were less than $508,500.

• 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 share of the capital stock of a cooperative housing corporation that the individual has acquired for the purpose of using a residential unit in a residential complex of the cooperative housing corporation as the primary place of residence of the individual or a relation of the individual,

  • (b) the agreement of purchase and sale referred to in paragraph 255(2)(c) of the Act of the share is entered into between the cooperative housing corporation 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 share or an interest in the cooperative housing corporation, residential complex or residential unit, is less than $2,090,500,

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

  • (e) ownership of the share is transferred to the individual before 2033,

  the individual is a prescribed person and the amount of a rebate in respect of the share 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 share — is equal to

  • (f) if the total consideration is not more than $1,695,000, the amount determined by the formula

    A − B

    where

    A

    is the lesser of $80,000 and 7.08% of the total consideration, 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 share, and

  • (g) if the total consideration is more than $1,695,000 but less than $2,090,500, the amount determined by the formula

    (C − D) × ($2,090,500 − E) ÷ $395,500

    where

    C

    is the lesser of $80,000 and 7.08% of the total consideration,

    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 share, 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 255(2.1) of the Act in respect of a share of the capital stock of a cooperative housing corporation that the individual has acquired for the purpose of using a residential unit in a residential complex of the cooperative housing corporation that is situated in Ontario as the primary place of residence of the individual and if the cooperative housing corporation has paid tax under subsection 165(2) of the Act in respect of a taxable supply to the cooperative housing corporation of the residential complex, the individual is a prescribed person and the amount of a rebate in respect of the share 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 share — 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 share or an interest in the cooperative housing corporation, residential complex or residential unit, is not more than $1,130,000, the amount determined by the formula

    A − B

    where

    A

    is the lesser of $80,000 and 7.08% of the total consideration, 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 share; and

  • (b) if the total consideration is more than $1,130,000 but less than $1,695,000, the amount determined by the formula

    (C × (($1,695,000 − D) ÷ $565,000)) − E

    where

    C

    is the lesser of $80,000 and 7.08% of the total consideration,

    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 share.

• 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 share — each of which is an amount of a rebate under subsection 256.21(1) of the Act in respect of the share, the amount of which is determined under subsection (2), (2.01) or (2.1) — shall not exceed the lesser of $80,000 and 7.08% of the total consideration (within the meaning of paragraph (2)(c)) in respect of the share.

• (3) [Repealed, SOR/2012-191, s. 38]

• 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 share is transferred to the individual.

• (5) [Repealed, SOR/2012-191, s. 38]