GST & QST rebates for new housing and substantial renovations

Allan | July 19th, 2010 - 2:37 pm

In Quebec, sales taxes of GST and QST apply to the sale of new housing. The cost of renovation services and construction materials is also applicable to additional GST & QST taxes. Under certain conditions, you may be entitled to a rebate (partial refund) of the GST and QST you paid on the purchase of new housing or on substantial renovation work done to your home. The rebate is equal to 36% of the taxes paid, but may not be over $6,300 in GST & $5,573 in QST.

The amount of the rebate is progressively reduced where the purchase price or fair market value of the new or renovated housing and the land is over:

$350,000 for GST purposes

$200,000 for QST purposes

No rebate is available where the purchase price or fair market value is:

$450,000 or more for GST purposes

$225,000 or more for QST purposes

For example, if you spend $95,000 plus taxes to renovate your home in Montreal, it will cost you an extra $12,231.25 in sales taxes. The GST/QST rebate allows you to receive $4,403.25 in cash refunds.

Contact us to inquire about our rebate claim services.

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