Real property

Most sales, leases, or other supplies of real property by charities are exempt from GST/HST. Even if you are registered for GST/HST, you cannot claim input tax credits (ITCs) for GST/HST you paid or owe on purchases of real property, on purchases of improvements to real property, or on other ongoing expenses related to real property that you supply to others, where the property is used primarily in making exempt supplies.

However, as a charity, you can choose to file an election that allows you to treat certain exempt sales and leases of real property as taxable supplies. This election allows you to claim ITCs for GST/HST you paid or owe on the acquisition of the property, or any improvements to it, to the extent that the property is used to make taxable supplies.

Also see Special self-supply rules for builders who receive government funding.

Forms and publications

• General Information for GST/HST Registrants guide (RC4022)
• GST/HST Information for Charities guide (RC4082)