Canada New Brunswick 15% HST update

Sun 10th Apr 2016

The Canadian province New Brunswick has published implementation guidance for the 1 July 2016 rise in Harmonized Sales Tax (HST) from 13% to 15%.

The guidance covers some of the following issues:

  • The new rate will apply to all transactions on the earliest of: invoice date; or the payment date. Any delays to either of these two dates will not make them invalid for determining the rate to use.
  • Anti-avoidance measures
  • The VAT rate treatment for: imports of goods and services into the province; and credits and returns of goods.
  • Transitional guidance on specific industries such as financial services, real estate and land
  • The current GST/HST anti-avoidance rules will apply to transactions subject to these transitional rules but it appears that other anti-avoidance rules could be implemented if required.

HST is a combination of federal Canadian Goods & Services Tax (5%), and New Brunswick’s provincial sales tax (10%).