Tax Letters: New Brunswick HST Rate Increases to 15%

Date: April, 2016 New Brunswick HST rate

The New Brunswick government announced in its 2016 budget¹ that its HST rate will be increased from 13 per cent to 15 per cent, effective July 1, 2016.  Even for organizations that do not carry on business in New Brunswick, they are required to collect GST/HST at the appropriate rate for taxable supplies made anywhere in Canada.

The province released a new notice, “Transitional Rules for the New Brunswick HST Rate Increase,” on March 30, 2016, that outlines the transitional rules in respect of the rate change. Transitional rules are necessary to determine whether the existing HST rate in New Brunswick of 13 per cent or the new HST rate of 15 per cent will apply to transactions that straddle the July 1, 2016 implementation date.

The tables below set out the GST/HST rates for each province before and after July 1, 2016.

Before July 1, 2016

Province GST/HST rate
Nova Scotia HST at 15%
Prince Edward Island HST at 14%
Ontario, New Brunswick, Newfoundland & Labrador HST at 13%
Anywhere else in Canada GST at 5%

As of July 1, 2016

Province GST/HST rate
Nova Scotia, New Brunswick HST at 15%
Prince Edward Island HST at 14%
Ontario, Newfoundland & Labrador HST at 13%
Anywhere else in Canada GST at 5%

 

For more information on how this rate change may impact your organization, click on the link below to the New Brunswick Finance Website or contact Frederic Pansieri.

¹ The 2016-17 New Brunswick budget was tabled on February 2, 2016 by Finance Minister Roger Melanson.

 

Contact Information

Frédéric Pansieri, BBA, CPA, CA, Director, Commodity Tax, Crowe Soberman LLP – Frédéric has extensive commodity tax experience, as well as corporate income tax experience at the federal level and in various provincial tax jurisdictions across Canada. You may reach Frédéric at frederic.pansieri@crowesoberman.com.

April 6, 2016

Crowe Soberman LLP

Chartered Professional Accountants

The information in our Tax Letter is current to April 6, 2016. The information contained here is of a general nature and is not intended to address the particular circumstances of an individual or entity. We endeavor to provide accurate and timely information; however, there is no guarantee that such information is accurate in the future. Specific professional advice should be obtained prior to the implementation of any suggestion contained in this publication.

Click here to download a copy of the tax letter (PDF).

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