HST · New Residential Construction · Ontario · Licensed CPA

HST on New Residential Construction

New Housing Rebate, self-supply rules, builder input tax credits, assignment sales, substantial renovation and the New Residential Rental Rebate, handled correctly for Ontario builders, developers and contractors. From $400.

Book Free Consultation Know Exact Fees within 2 Minutes

★

Fully Licensed CPA Ontario

★

1300+ ★★★★★
Google Reviews

★

30-Day Money-Back Guarantee

★

60-Day Fees-Matching Policy

ACTIVELY ACCEPTING
Builders & Developers

New housing HST, rebates, ITCs, T2

Convenient Availability

Weekend and evening support until 9 PM

New Housing HST Specialists

Rebates, self-supply, assignments, ITCs

Book Your Free Consultation Know Exact Fees within 2 Minutes NOW

New Housing HST Is Where Builders Lose the Most Money

HST on new residential construction is one of the most misunderstood areas of tax in the building industry, and the mistakes are expensive. A builder who forgets to claim the New Housing Rebate on a client's behalf, or who triggers the self-supply rule on a spec home without realizing it, or who treats an assignment sale as exempt when it is taxable, can lose or owe tens of thousands of dollars per unit. The rules differ depending on whether you sell the home, rent it out, build on the buyer's land, or substantially renovate an existing one. Builders also leave input tax credits unclaimed on the HST they pay on materials, subtrades and soft costs. On a multi-unit project, these errors multiply fast.

We handle HST on new residential construction for builders, developers and contractors across Ontario. New Housing Rebate, self-supply, builder ITCs, assignment sales, substantial renovation and the New Residential Rental Rebate, filed correctly. From $400. AFFORDABLE flat fees.

Book Free Consultation

Gondaliya CPA team - HST on new residential construction in Ontario

HST Services for New Residential Construction

🏠

New Housing Rebate

GST/HST New Housing Rebate calculated and filed for owner-built and builder-sold homes.

🔄

Self-Supply Rules

Self-supply on spec homes and rentals identified and reported before it becomes a problem.

💰

Builder Input Tax Credits

ITCs claimed on materials, subtrades, soft costs and land where eligible.

📋

Assignment Sales

HST on pre-construction assignment sales handled under the current taxable treatment.

🔨

Substantial Renovation

Whether a renovation is "substantial" and therefore treated as new housing for HST.

🏢

Rental Property Rebate

New Residential Rental Property Rebate for builders and investors who rent rather than sell.

How We Handle HST on New Residential Construction

A complete process so rebates are claimed, self-supply is managed, and no ITC is left behind. AFFORDABLE flat fees.

New Housing Rebate Calculation and Filing

The rebate recovers part of the HST on a new or substantially renovated home.

Federal GST New Housing Rebate calculated where the home qualifies.
Ontario HST New Housing Rebate (provincial portion) calculated and claimed.
Owner-built home rebate filed where the owner built or hired a contractor.
Builder-credited rebate handled where the builder pays or credits it to the buyer.
Eligibility confirmed: primary place of residence, price thresholds and deadlines.

Self-Supply Rules on Spec Homes and Rentals

The self-supply rule catches builders who keep or rent a home instead of selling it.

Self-supply triggered when a builder occupies or rents a newly built home.
Fair market value at the time of self-supply determined as the deemed sale.
HST on the deemed self-supply calculated and reported correctly.
The corresponding rebate or rental rebate claimed to offset it where eligible.
Timing managed so the self-supply is reported in the correct period.

Builder Input Tax Credits

Builders pay HST on almost everything. Most of it is recoverable.

ITCs on construction materials, lumber, fixtures and finishes.
ITCs on subtrade invoices: framing, electrical, plumbing, HVAC, drywall.
ITCs on soft costs: design, engineering, permits, legal and consulting.
ITC eligibility on land purchases reviewed where the builder is registered.
Documentation organized so every credit is supportable on a CRA review.

Assignment Sales

Pre-construction assignment sales are taxable, and the rules tightened recently.

HST applied to the assignment of a pre-construction purchase agreement.
The taxable portion of the assignment consideration identified correctly.
Deposits versus profit on the assignment separated for HST purposes.
Assignor registration and remittance obligations confirmed.
Impact on the buyer's New Housing Rebate eligibility reviewed.

Substantial Renovation

A "substantial" renovation is treated as new housing. The test matters.

The substantial renovation test applied: was 90% or more of the interior removed or replaced.
HST treatment determined: new housing rules versus ordinary renovation.
New Housing Rebate eligibility on a qualifying substantial renovation assessed.
Additions and partial renovations distinguished from substantial renovations.
Documentation built to support the position if the CRA questions it.

New Residential Rental Property Rebate

Build to rent rather than sell, and a different rebate applies.

New Residential Rental Property Rebate (NRRPR) claimed for rental units.
Self-supply on a build-to-rent project coordinated with the rebate.
Federal and Ontario portions of the rental rebate calculated.
One-year lease and primary-residence-for-tenant conditions confirmed.
Filing deadlines tracked so the rebate is not lost to a missed date.

Free New Housing HST Consultation

Book Your Free Consultation Know Exact Fees within 2 Minutes

Free New Housing HST Consultation

Case Studies: New Housing HST

Custom Home Builder, Oakville

A custom builder finished an owner's home but never filed the GST/HST New Housing Rebate the owner was entitled to. We calculated the federal and Ontario portions, filed the rebate within the deadline, and recovered a significant rebate for the client. The builder now files the rebate on every qualifying project. Get Started →

New Housing Rebate filed. Significant HST recovered for the client.

Spec Builder, Mississauga (Self-Supply)

A builder put up a spec home, could not sell it, and rented it out, unknowingly triggering the self-supply rule. We reported the deemed self-supply at fair market value, claimed the New Residential Rental Property Rebate to offset it, and brought the file onside before it became a CRA assessment.

Self-supply reported. Rental rebate claimed. Assessment avoided.

Small Developer, Vaughan (ITCs)

A developer building a small multi-unit project was not claiming input tax credits on subtrade invoices and soft costs. We organized the HST on materials, subtrades, design and permits, and claimed the full ITCs, recovering substantial HST that had been left on the table across the build. HST Filing →

Builder ITCs claimed in full. Substantial HST recovered.

Pre-Construction Investor, Toronto (Assignment)

An investor assigning a pre-construction condo was unaware the assignment was subject to HST. We separated the deposit from the profit, calculated HST on the taxable consideration, confirmed registration and remittance, and filed it correctly, avoiding a costly reassessment on the assignment.

Assignment HST handled correctly. Reassessment avoided.

Which HST Rule Applies to Your Project?

Scenario	HST Treatment	Rebate That May Apply
Builder sells a new home to a buyer	Sale is taxable; HST on the price	New Housing Rebate (often credited to buyer)
Owner builds or hires a contractor	HST on construction inputs	Owner-Built New Housing Rebate
Builder rents the new home out	Self-supply at fair market value	New Residential Rental Property Rebate
Substantial renovation (90%+ interior)	Treated as new housing	New Housing Rebate may apply
Assignment of a pre-construction agreement	Taxable assignment	Affects buyer's rebate eligibility
Ordinary repair or minor renovation	HST on services, no new-housing rules	Generally none

The Self-Supply Trap: If you build a home intending to sell it, then occupy or rent it instead, the CRA treats this as a self-supply: you are deemed to have sold the home to yourself at fair market value and must report HST on it. Builders who do not plan for this get caught off guard. The rental rebate often offsets it, but only if claimed correctly and on time.

New Housing HST Rebates in Ontario

Rebate	Who Claims It	What It Covers
GST/HST New Housing Rebate (builder-sold)	Buyer, often credited by builder	Part of the federal and Ontario HST on a new home
Owner-Built New Housing Rebate	Owner who built or hired a contractor	HST on construction of an owner-built home
New Residential Rental Property Rebate	Builder or investor who rents the unit	HST on a new home built or bought to rent out
Ontario provincial new housing portion	Buyer or owner	Provincial portion of the HST, subject to limits

Deadlines Matter: New housing rebates have strict filing deadlines, generally within two years of the relevant date. Miss the deadline and the rebate is gone, no matter how clearly you qualified. We track these so the rebate is never lost.

What Our New Housing HST Service Includes

Service	What We Do
New Housing Rebate	Federal and Ontario rebate calculated and filed within deadline.
Self-supply review	Spec homes and rentals reviewed; deemed self-supply reported.
Builder ITCs	ITCs on materials, subtrades, soft costs and land claimed in full.
Assignment sales	HST on assignments calculated, deposit and profit separated.
Substantial renovation	The 90% test applied; treatment and rebate determined.
Rental property rebate	NRRPR claimed for build-to-rent units, federal and Ontario portions.
HST return filing	Project HST returns prepared and filed on your schedule.
Documentation	Records organized to support every rebate and ITC on CRA review.

Is Your New Housing HST Handled Correctly?

You know whether each project is a taxable sale, a self-supply, or a rental
The New Housing Rebate is calculated and filed on every qualifying home
You understand the self-supply rule before you rent out a spec home
You claim the New Residential Rental Property Rebate on build-to-rent units
Builder ITCs on materials, subtrades and soft costs are claimed in full
Assignment sales are treated as taxable and HST is calculated correctly
Substantial renovations are tested against the 90% rule
Rebate filing deadlines are tracked so none are missed
Your HST returns reconcile to your project costs and sales
Documentation would support your rebates and ITCs in a CRA review
Your HST is coordinated with your bookkeeping and T2 corporate tax
You want new housing HST handled by a CPA, not guessed at

New Housing HST Handled Correctly. From $400.

Rebates, self-supply, ITCs, assignments. 30-Day Money-Back.

Calculate My Fee

Why Builders Choose Gondaliya CPA

🏠

New Housing HST Specialists

Rebates, self-supply, ITCs, assignments, substantial renovation.

📋

Everything Coordinated

HST, bookkeeping, holdbacks, WSIB and T2 handled together.

📜

Fixed-Fee Pricing

No hourly. 30-Day Money-Back. 60-Day Fees-Matching.

🤝

1300+ Reviews

Canada's most AFFORDABLE CPA. Flat fees for every service.

New Housing HST Pricing

Service	Fee	Includes
New Housing Rebate filing	From $400	Federal and Ontario rebate calculated and filed
New Residential Rental Property Rebate	From $500	NRRPR calculation, self-supply coordination, filing
Assignment sale HST	From $400	Taxable portion, deposit/profit split, remittance
Project HST return filing	From $150/period	Builder ITCs claimed, return prepared and filed
Monthly bookkeeping	From $150/month	Full books. HST filing and T2 FREE.
Construction T2 corporate tax	From $400	Year-end corporate tax return for your building company

Know Your Exact Fee Before We Start

AFFORDABLE flat fee. 30-Day Money-Back. 60-Day Fees-Matching.

Calculate My Fee

Related Industries We Serve

Construction
Holdbacks, WIP, subcontractors, WSIB, tax Real Estate Investors
Rental income, rebates, capital gains, property corps Real Estate Professionals
PREC, commission HST, expense planning Small Business
SBD optimization, owner comp, compliance

View All Industries

Frequently Asked Questions: HST on New Residential Construction

Is HST charged on new residential construction?

Yes. The sale of a new or substantially renovated home is taxable, and HST applies to the price. Used residential housing resales are generally exempt, but new builds are taxable.

What is the GST/HST New Housing Rebate?

A rebate that returns part of the federal and Ontario HST paid on a new or substantially renovated home that is the buyer's primary place of residence. It can be claimed by the buyer or credited by the builder.

Who can claim the New Housing Rebate?

A buyer of a new home from a builder, or an owner who built or substantially renovated their own home, where the home is their or a relation's primary place of residence and the conditions are met.

Does the builder or the buyer claim the rebate?

On a builder-sold home, the builder often credits the rebate to the buyer at closing and claims it back from the CRA. On an owner-built home, the owner claims it directly. We handle either.

What is the deadline to file the New Housing Rebate?

Generally within two years of the relevant date, such as closing or substantial completion. The exact date depends on the situation. Missing the deadline means losing the rebate entirely.

What is the self-supply rule?

If a builder builds a home to sell but then occupies or rents it, the CRA deems the builder to have sold the home to themselves at fair market value. HST must be reported on that deemed sale.

When does self-supply get triggered?

Typically when a builder gives possession of a newly constructed or substantially renovated home to a tenant under a lease, or first occupies it as a residence, rather than selling it.

How do I avoid a self-supply surprise?

Plan the project intent up front. If a home may be rented, the self-supply and the New Residential Rental Property Rebate should be modelled before occupancy so the net HST cost is known.

What is the New Residential Rental Property Rebate?

A rebate (NRRPR) for builders and investors who construct or buy a new home to rent out long-term, rather than sell. It offsets part of the HST, including the self-supply HST, on qualifying rental units.

Can a builder claim input tax credits?

Yes. A registered builder claims ITCs on the HST paid on materials, subtrades, soft costs and often land. These can be substantial across a build and are frequently underclaimed.

What ITCs can a builder claim?

HST on lumber and materials, subtrade invoices, fixtures and finishes, design and engineering, permits, legal, and eligible land costs. Good records are essential to support every credit.

Is HST charged on assignment sales?

Yes. The assignment of a pre-construction purchase agreement is taxable. HST applies to the taxable portion of the assignment consideration, and the rules around this tightened in recent years.

How is HST calculated on an assignment?

The deposit portion and the profit portion of the assignment are separated, and HST generally applies to the taxable consideration. The assignor's registration and remittance obligations must be confirmed.

Do I need to register for HST to do an assignment?

Often yes. An assignor of a pre-construction agreement may be required to register and remit HST on the assignment. We confirm your obligations before you close the assignment.

What is a substantial renovation for HST?

A renovation where 90% or more of the interior of an existing home is removed or replaced. A substantial renovation is treated like new housing, so HST and the New Housing Rebate can apply.

How do I know if my renovation is substantial?

The 90% test looks at how much of the existing interior was removed or replaced. Additions and partial updates usually do not qualify. We assess the work against the test and document the position.

Is HST charged on a resale (used) home?

Generally no. The resale of previously occupied residential housing is usually exempt. The new-housing rules apply to newly built or substantially renovated homes, not ordinary resales.

What HST rate applies to new homes in Ontario?

Ontario HST is 13%. The New Housing Rebate returns part of both the federal and Ontario portions, subject to price thresholds and limits, lowering the effective HST cost on a qualifying home.

Does the rebate have a price limit?

The federal portion phases out above certain price thresholds, while the Ontario portion has its own maximum. We calculate exactly what applies to your home's price.

What if I build a home for a family member?

If the home is the primary place of residence of you or a relation and the conditions are met, the New Housing Rebate can still apply. We confirm eligibility based on the specific facts.

What happens if I claimed the rebate but then rented the home?

If the primary-residence condition is not met because the home was rented, the New Housing Rebate can be denied or reassessed. The rental rebate may apply instead. Getting the intent and rebate right matters.

Do I charge HST when I sell to the first buyer?

Yes. As a builder selling a new home, the sale is taxable and you charge HST on the price, typically crediting the eligible New Housing Rebate to the buyer at closing.

How does new housing HST fit with my corporate tax?

HST and corporate tax are separate but connected. Project costs, rebates and ITCs flow into your books and your T2 return. We handle both so they reconcile. Construction Accounting →

Can you fix HST that was filed incorrectly?

Yes. We review prior filings, correct missed rebates or ITCs, address any self-supply that was not reported, and bring the project HST onside, often recovering money in the process.

What records do I need to keep?

Purchase and sale agreements, material and subtrade invoices showing HST, rebate applications, leases for rental units, and your filed returns. Strong records support rebates and ITCs on a CRA review.

How much does new housing HST work cost?

New Housing Rebate filing starts at $400. The rental rebate starts at $500. Project HST return filing starts at $150 per period. All fees include HST.

Are your fees inclusive of HST?

Yes. All quoted fees include HST, so the number you are quoted is the number you pay.

How do I pay your fees?

Payment is by Interac e-Transfer to info@gondaliyacpa.ca. Auto-deposit is enabled, so no security question is needed.

Do you serve builders outside Toronto?

Yes. We handle new housing HST for builders, developers and contractors across the GTA and all of Ontario virtually, with the same flat-fee pricing.

How do I get started?

Book a free consultation or use our fee calculator. We review your project, confirm which HST rules and rebates apply, and handle the filing so nothing is missed. Book Free Consultation →

Meet Your New Housing HST Specialists

Sharad Gondaliya, CPA

Founder & Managing Director
Gondaliya CPA Professional Corporation

Sharad leads new housing HST engagements, rebate filings, self-supply and assignment treatment, builder ITCs and corporate tax for builders and developers across Ontario.

Vandana Goel, CPA

Senior Accountant
Gondaliya CPA Professional Corporation

Vandana handles builder bookkeeping, project HST returns, ITC tracking on materials and subtrades, and rebate documentation for new housing clients.

What Our Clients Say

1300+ five-star reviews from business owners across Ontario and Canada.

10 New Housing HST Practices That Protect Builders

#	Practice	Why It Protects You
1	Decide sell vs rent intent before occupancy	Determines whether self-supply or a sale applies.
2	File the New Housing Rebate on every qualifying home	Recovers part of the HST that is otherwise lost.
3	Plan for self-supply on spec homes you may rent	Avoids a surprise deemed-sale HST bill.
4	Claim the rental rebate on build-to-rent units	Offsets self-supply HST on rental projects.
5	Claim builder ITCs on every project cost	Recovers HST on materials, subtrades and soft costs.
6	Treat assignment sales as taxable	Avoids reassessment on pre-construction assignments.
7	Apply the 90% test to renovations	Confirms whether new-housing rules and rebates apply.
8	Track every rebate filing deadline	A missed deadline means the rebate is gone.
9	Keep invoices showing HST on all inputs	Supports ITCs and rebates on a CRA review.
10	Coordinate HST with your bookkeeping and T2	Keeps the whole project consistent and audit-ready.