Print this page
  • GST17 - Election concerning the provision of a residence or lodging at a remote work site


General Information

Eligibility

You are eligible to make this election if all of the following conditions apply:

  • you are a GST/HST registrant

  • you are a builder of housing, or an addition to multiple unit housing, that is located at a remote work site

  • you acquired, constructed, or substantially renovated the housing, or you constructed the addition, to provide a place of residence or lodging to the following eligible individuals while they must be at that remote work site to perform their duties:

    • your employees

    • contractors (engaged by you to render services to you at that remote work site)

    • subcontractors (engaged by a contractor, described above, to render services at that remote work site and that are acquired by the contractor to supply services to you at that site)

    • employees of the contractors and subcontractors, described above

  • the work site is so remote from any established community that an eligible individual could not reasonably be expected to set up and keep a self-contained domestic establishment (for example, an apartment, a dwelling house, or another similar place of residence where a person generally sleeps and eats)

For more information on when a work site generally qualifies as remote, see "Remote work site" on page 4.

Effect of the election

Generally, when you first give possession or use of new or substantially renovated housing, or a residential unit in an addition to multiple unit housing, under a lease, licence or similar arrangement for use by an individual as a place of residence, you are considered to have made a taxable supply of the housing or addition. As a result, you have to account for the GST/HST calculated on the fair market value of the housing or addition.

However, if you are eligible to make this election, and you do so, you will not be considered to have made a supply of the housing or addition, and its occupation by an individual will not be considered occupation as a place of residence or lodging. This means that you will not have to account for the GST/HST, as would generally be required.

You will only be considered to have made a supply of the housing or addition when you later sell the housing or you supply it by way of lease, licence or similar arrangement primarily (more than 50%) to persons who are not eligible individuals, performing their duties at the remote work site (or who are not relatives of such eligible individuals). GST/HST will apply to the housing or addition at that time as follows:

  • If you sell the housing, your sale will be taxable. In this case, you will collect the GST/HST on the sale, unless the purchaser is registered for the GST/HST and is not an individual, in which case the purchaser will pay the tax directly to the CRA.

  • If you begin to provide the housing or addition, or a residential unit in the housing or addition, by way of lease, licence or similar arrangement as described above, you will have to account for the GST/HST calculated on the fair market value of the housing or addition. For more information on accounting for tax when you lease housing, see Guide RC4052, GST/HST Information for the Home Construction Industry.

Making the election

Do not send this form to the CRA. Keep the election with your books and records for six years after you either sell the housing or account for the tax at the fair market value of the housing or addition.

Definitions

Builder of housing or an addition to multiple-unit housing generally means a person who, at a time when the person has an interest in the real property on which the housing is situated, constructs or substantially renovates the housing, or constructs the addition, or engages another person to carry on the construction or substantial renovation. A builder may also include:

  • a manufacturer or vendor of a new (previously unoccupied) mobile home or floating home

  • a person who acquires an interest in new (previously unoccupied) housing to resell the housing, or interests in the housing, or to rent it to persons (other than individuals for their personal use)

  • a person who acquires an interest in housing while it is under construction or substantial renovation, or in the case of an addition to multiple-unit housing, acquires an interest in the housing when the addition is under construction

  • a person who converts non-residential property into housing

An individual is not a builder unless they construct or substantially renovate the housing, acquire an interest in housing, or sell a mobile home or floating home in the course of a business or an adventure or concern in the nature of trade.

A person hired to provide construction services on land that is leased or owned by someone else, and who does not have an interest in that land, is not generally considered to be a builder. For example, a contractor hired by an owner or a lessee of land to build new housing on the land or to substantially renovate existing housing on the land is not considered to be a builder of the housing.

Established community generally means a body of people who reside in the same locality and who are permanently settled in that location. A location will not be considered an established community if it lacks essential services at the location (for example, a basic food store, a basic clothing store with merchandise in stock [not a mail-order outlet], access to housing, certain medical assistance, and certain educational facilities), or if such services are not available within a reasonable commuting distance.

Registrant means a person that is registered or required to be registered for the GST/HST, but generally excludes a person that is registered or required to be registered under special rules applicable to digital economy businesses unless that person registered under those special rules begins carrying on business in Canada, requiring them to register under the regular rules that apply to most persons.

Remote work site – The work location where the housing is situated will generally be considered to be remote if the nearest established community with a population of 1,000 or more is 80 kilometres or further from the work location by the most direct route normally travelled in the circumstances.

Residential unit can include a detached house, semi-detached house, row-house unit, apartment, suite, mobile home, floating home, or other similar premises or part thereof that is, or is intended to be, occupied by an individual as a place of residence or lodging.

Substantial renovation (for the purposes of new housing rebates) – Major changes have to be made to meet the definition of a substantial renovation. In a major renovation project, the interior of a building is essentially gutted. Generally, 90% or more of the interior of the existing housing has to be removed or replaced to qualify as a substantial renovation (the 90% test).

You do not have to remove or replace the foundation, exterior and interior supporting walls, roof, floors, and staircases to meet the 90% test.

Only livable areas count towards a substantial renovation, including finished basements and finished attics. Livable areas do not include garages or crawl spaces. Work done to partially complete a basement but not make it a livable basement does not count toward the 90% test.

If you need help

For more information, see GST/HST Memorandum 19-2-3, Residential Real Property – Deemed Supplies, or call 1-800-959-5525.

To get our forms and publications, go to canada.ca/gst-hst-pub or call 1-800-959-5525.