Builders of residential rental properties may have an opportunity to recover GST/HST that was overpaid during their GST/HST self-assessment process at the time a newly constructed or substantially renovated residential rental property was first occupied. A recent Canada Revenue Agency (CRA) communique outlines its position that the fair market value on which GST/HST is to be self-assessed excludes any GST/HST that is included in the appraised value. If you are a builder that self-assessed GST/HST on a value that included an amount of tax, a potential recovery opportunity may be available to you.
How BDO can help
If you have been required to self-assess GST/HST on the construction or substantial renovation of a multiple unit residential complex in the past few years—or will be required to do so in the future—we can assist with:
- determining whether the FMV was adjusted to take embedded GST/HST into account;
- determining potential recoveries of GST/HST paid in error;
- ensuring all eligible input tax credits have been claimed; and
- ensuring GST/HST new rental property rebates are maximized.
For further background information on previously announced GST relief rules, read our article GST relief announced for new residential rental properties.