# TIM-06 — Holdbacks (s.168(7))

**Flag: Current** — Verified against the live source. Safe to cite.

**Holdbacks** (s.168(7)): where the recipient retains part of the consideration pending performance, tax on the held-back amount is payable on the **earlier of** the day the holdback is paid out and the day the holdback period expires. Applies only where the holdback is required by federal or provincial law, or by a **written agreement** for the construction, renovation, alteration or repair of real property, a ship or other marine vessel. A voluntary holdback does not defer tax. Where a supplier collects tax before it is payable, it must still remit it for the period collected

## Sources

- Memorandum 19-1 (primary): https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/19-1/real-property-gst-hst.html
- Home construction (primary): https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-home-construction.html

Jurisdiction: FED · Verified 2026-08-27 · Review: legislative