Effective 1 July 2016, the Province of New Brunswick will increase its Harmonized Sales Tax (HST) rate from 13% to 15%. The provincial portion of the HST is increasing by 2% from 8% to 10%.
The new HST rate of 15% is a combination of the 5% federal Goods and Services Tax (GST) and combined with the 10% provincial portion.
Most goods and services supplied in New Brunswick are subject to the Harmonized Sales Tax (HST). New Brunswick has been an HST participating province since April 1, 1997.
Transitional rules are required to set out which tax rate (the existing HST rate of 13% or the new rate of 15%) would apply in respect of certain transactions that straddle the July 1, 2016 implementation date.
Administration of the HST, including the administration of the HST transitional rules, is performed by the Canada Revenue Agency.
The Canada Revenue Agency collects HST, processes applications, and makes rulings and interpretations on the application of HST policy. All individuals and businesses must deal directly with the CRA for any of these or other administrative issues. For more information please contact the Canada Revenue Agency.