• GST22 - Real property election to make certain sales taxable

Effect of the election

In certain limited situations, a person may make this election to treat an exempt sale of real property as taxable. A person may want to make their sale of real property taxable so that they can claim an input tax credit (if a registrant) or a rebate using Form GST189, General Application for GST/HST Rebates (if a non-registrant), for the GST/HST they paid to acquire or improve the property but were previously unable to recover.

Tick election type 1 if you meet the following conditions:

• you are an individual or a personal trust

• you are making a sale of real property (other than a residential complex or an interest in a residential complex) in the course of an adventure or concern in the nature of trade

Filing instructions for election type 1

You have to file a type 1 election with the GST/HST Rebates Processing section at the Prince Edward Island Tax Centre before the sale is made. The CRA generally considers the sale to be made when you enter into an agreement of purchase and sale. For more information, call 1-800-959-5525.

Where to send this form

Send this form to:

General criteria for election types 2 and 3

You are eligible to make a type 2 or type 3 election if you meet all of the following general criteria and the additional criteria for election types 2 or 3 as specified on this page:

• the recipient (original vendor) of the real property is registered for GST/HST

• the original vendor of the property had previously made a taxable sale of the same property to you and this previous sale was the last sale (including deemed sales) of the property to you

• you are making the sale of the real property back to the original vendor in accordance with a right or obligation of the original vendor under the agreement for the previous sale to repurchase the real property

• you and the original vendor make this election jointly

• the sale of the real property back to the original vendor is made not more than one year after you took ownership or possession of the property from the original vendor, whichever occurred earlier, under the agreement for the previous sale

• a personal trust (other than a testamentary trust), the settlor of which was the recipient of the previous sale

• a testamentary trust that arose from the death of an individual who was the recipient of the previous sale

Tick election type 2 if you meet the following conditions:

• you meet the general criteria for election types 2 and 3 listed on this page

• the property is a residential complex or an interest in a residential complex

• you are not the builder of the residential complex, or, if the residential complex is a multiple unit residential complex, you are not the builder of an addition to the complex

• the residential complex was not used by any individual as a place of residence or lodging after the construction or last substantial renovation was substantially completed

Tick election type 3 if you meet the following conditions:

• you meet the general criteria for election types 2 and 3 listed on this page

• the property is real property other than a residential complex or an interest in a residential complex

• you are an individual or a personal trust

Filing instructions for election types 2 or 3

A type 2 or type 3 election must be filed with the recipient's (original vendor's) GST/HST return for the reporting period in which the recipient is required to report the tax payable for the supply of real property that you made. If the recipient files its GST/HST return electronically, the recipient has to file this election with its tax services office immediately after the return is filed.

You can file this form online, following these steps:

• sign in or register to access My Business Account at canada.ca/cra-sign-in-services

• choose your "GST/HST" account in the Navigation menu

• under the GST/HST menu, select "File an election"

• select "Other"

• from the drop-down menu, choose "GST22"