menu

What to Do When Asked to Repay an HST Rebate in Ontario

What to Do When Asked to Repay an HST Rebate in Ontario

When you first purchase a pre-construction property in Ontario from the builder and tell them that you will be occupying the house or condo as your primary residence, both the HST (harmonized sales tax) and the HST rebate are worked into the cost by the builder. In many cases, buyers are unaware that the HST rebate on new condos and homes is even being applied. However, if your circumstances change and you can longer occupy the property as your primary residence, you may decide to rent the property out as an investment. In response, you may receive a letter from the government ordering that the HST rebate you were discounted be paid back.

Finding out you have to repay this amount can be understandably frightening, especially if you didn’t know about the HST rebate on new condos and homes in the first place. But the experienced specialists at Rebate4U can help fix the situation. If you receive this letter, reach out to our team to get started.

What is the HST Rebate in Ontario?

hst rebate OntarioSince 13% tax (HST) is factored into the cost of every newly built home, the HST Rebate is a program offered in Ontario that discounts property buyers a portion of the tax spent on a newly purchased property, newly built property, or significantly renovated property. Every pre-constructed house or condo in Ontario has the HST tax and rebate incorporated into the paperwork from the builder. If you tell your builder that you intend on occupying the property as your primary residence, then you won’t have to worry about the HST rebate at all.  But if your newly purchased home or condo is being used as a rental property, you’ll have to handle the application on your own.

HST Rebate for Rental Properties

If you, or an immediate family member, are not occupying a newly purchased property as your primary residence, there is still an HST rebate in Ontario that can be applied to investment/rental properties (the new residential rental property rebate). If you decide that you will be using a property as a rental, you can apply for the new residential rental property rebate, but your application will have to be put together independently of the builder. The Rebate4U team can help you complete this application and submit it successfully. We have years of experience with the new rental residential property rebate and the primary residence HST rebate on new condos/houses. Using our expertise and experience, we will help you ensure your application is error-free.

Fixing Rebate Application Mistakes

For the average person, communication with the government can be frightening and anxiety-inducing. It’s easiest and most hassle-free to seek out a trusted professional to manage your dealings with the Canada Revenue Agency for accuracy and peace of mind. Rebate4U has a decade of experience working with the CRA. We help fix mistakes or problems between property owners and the CRA. If you’re not sure what to do about your rebate application or a notice related to repayment of your HST Rebate, don’t stress. Reach out to our team immediately, and we will guide you.

Contact us today to set up a consultation.

Download PDF

All posts
We are sorry...

But the values you entered are invalid