Nouvelles fiscales janv. 14, 2025
On October 23, 2024, Nova Scotia announced its intention to decrease its Harmonized Sales Tax (HST) rate from 15% to 14%, effective April 1, 2025. The province has now released the transitional rules relating to this quickly approaching rate decrease. These rules provide a standard approach for determining the applicable tax rate for transactions that straddle the effective date.
In summary, the proposed transitional rules issued by Nova Scotia will be based on the general timing of liability rules found in the Excise Tax Act. Under these rules, HST on the consideration for a supply is payable on the earlier of the day payment is made and the day the consideration becomes due. The consideration for a supply typically becomes due on the earliest of: the day the supplier issues an invoice; the invoice date; the day a supplier would have, if not for an undue delay, issued an invoice for the supply; and the day the recipient is liable for payment under a written agreement. The payment terms on an invoice are irrelevant.
The transitional rules generally require the new rate of 14% to be collected if the HST becomes payable on or after April 1, 2025, and the old rate of 15% to be collected if the HST becomes payable before that date. For example, where the invoice for a taxable supply is dated on or after April 1, 2025, the new HST rate will apply.
Further details on the transitional rules, including specific rules addressing real property transactions, imported goods, imported taxable supplies, supplies by financial institutions, pension plans, and taxable benefits can be found on the province’s website at: Transitional Rules for the April 1, 2025 Nova Scotia HST Rate Decrease.
Ryan will be providing further information regarding the Nova Scotia HST rate decrease in the coming days. In the meantime, if you have any questions or concerns about the potential impact of this change on your organization, please contact Ryan TaxDirect® at taxdirect@ryan.com or 1.800.667.1600.