Quote:
Originally Posted by redforever
Do they pay 5% less though? The GST they pay gets rebated back right now. Seems like a wash to me.
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Only when they sell it, at which point they collect GST from the buyer and then only remit the difference between what they pay and what they collect. With rentals, the idea is you build it to keep it and generate income with it.
So if an REIT, developer, or investor builds an apartment building, normally they're stuck covering the GST because they're the end customer and you don't collect GST on rent. But now they will get any GST they pay as part of construction rebated back.