New Harmonized Value-added Tax System Regulations, No. 2

Marginal note:Rebate for a specified single unit residential complex

• 56 (1) For the purposes of subsection 256.21(1) of the Act, the following circumstances are prescribed circumstances in respect of a specified single unit residential complex:

  • (a) a builder of the complex

    • (i) is deemed under section 191 of the Act to have made a taxable supply of the complex as a consequence of giving possession or use of the complex to a person under a lease, licence or similar arrangement or occupying it as a place of residence, or

    • (ii) makes a taxable supply by way of sale of the complex to an individual;

  • (b) the complex is situated in a specified province;

  • (c) tax under subsection 165(2) of the Act is payable in respect of the supply;

  • (d) if subparagraph (a)(i) applies, first possession or use of the complex as a place of residence, after substantial completion of its construction or last substantial renovation, occurs on or after July 1, 2010 and before July 1, 2014;

  • (e) if subparagraph (a)(ii) applies, possession of the complex is transferred to the individual on or after July 1, 2010 and before July 1, 2014; and

  • (f) that construction or last substantial renovation of the complex is 10% or more completed immediately after June 2010.

• Marginal note:Prescribed property and person

  (2) If the circumstances described in subsection (1) are satisfied in respect of a complex, for the purposes of subsection 256.21(1) of the Act, the complex is prescribed property and

  • (a) in the case described in subparagraph (1)(a)(i), the builder referred to in paragraph (1)(a) is a prescribed person; and

  • (b) in the case described in subparagraph (1)(a)(ii), the individual referred to in that subparagraph is a prescribed person.

• Marginal note:Assignment of rebate

  (3) If the circumstances described in subsection (1) are satisfied in respect of a complex and subparagraph (1)(a)(ii) applies in respect the complex, for the purposes of subsection 256.21(6) of the Act, the rebate under subsection 256.21(1) of the Act in respect of the complex, the amount of which is determined under subsection (4), is a prescribed rebate and that rebate may be assigned to the builder of the complex referred to paragraph (1)(a).

• Marginal note:Amount of rebate

  (4) If the circumstances described in subsection (1) are satisfied in respect of a complex, for the purposes of subsection 256.21(1) of the Act, the amount of the rebate in respect of the complex under that subsection is

  • (a) 100% of the estimated provincial levy for the complex if the construction or last substantial renovation of the complex is, immediately after June 2010, 90% or more completed;

  • (b) 90% of the estimated provincial levy for the complex if the construction or last substantial renovation of the complex is, immediately after June 2010, 75% or more but less than 90% completed;

  • (c) 75% of the estimated provincial levy for the complex if the construction or last substantial renovation of the complex is, immediately after June 2010, 50% or more but less than 75% completed;

  • (d) 50% of the estimated provincial levy for the complex if the construction or last substantial renovation of the complex is, immediately after June 2010, 25% or more but less than 50% completed; or

  • (e) 25% of the estimated provincial levy for the complex if the construction or last substantial renovation of the complex is, immediately after June 2010, 10% or more but less than 25% completed.