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ARTICLE · 04 MARCH 2026

How GST/HST Works On Multi-Residential Rental Construction?

Gardiner Roberts LLP
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For commercial mortgage lenders financing in-progress or newly completed multi-residential rental or retirement projects in Ontario, it is important to understand how GST/HST applies at completion.

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Zev Zlotnick
Zev Zlotnick
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For commercial mortgage lenders financing in-progress or newly completed multi-residential rental or retirement projects in Ontario, it is important to understand how GST/HST applies at completion. Unlike projects built for sale, rental projects are subject to the "deemed self-supply" rule under the Excise Tax Act. The following provides a brief, general overview only. Specific transactions should always be reviewed with qualified tax advisors.

Construction Phase – Input Tax Credits (ITCs). During construction, the builder pays GST/HST on labour, materials, and services. These amounts are generally recoverable through Input Tax Credits ("ITCs"), provided the builder is registered for GST/HST and engaged in commercial activity. ITCs help manage cash flow during construction and are available because the builder will ultimately be deemed to make a taxable supply at completion.

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