News and Insights

CRA GST/HST Info Sheets on Nova Scotia’s Rate Increase

Tax Development Sep 16, 2010



The Canada Revenue Agency has released four new GST/HST Info Sheets to explain how the Nova Scotia HST rate increase from 13% to 15%, effective July 1, 2010, applies to taxable supplies that straddle this date. 

GST/HST Info sheet GI-108 for supplies of personal property provides guidelines on how the rate change applies to sales of taxable goods and intangible personal property, supplied by sale lease, licence or similar arrangement during the transitional period.  Examples are provided to clarify the tax application for supplies becoming due or paid before July 1, 2010 as well as those becoming due or paid on or after July 1, 2010.  It is important to note that the application of this HST rate change for supplies of goods is much different than the application of the transitional rules for supplies of goods for purposes of the Ontario and British Columbia HST.

GST/HST Info Sheet GI-109 provides guidelines on how the rate change applies to services straddling the transitional date.  This document also outlines how the HST increase applies to services partially completed during the transitional period and to a combination of goods and/or services. 

Admissions and memberships are addressed in the third GST/HST Info Sheet GI-110 which provides definitions and examples of transitional issues for these types of supplies.  This document also outlines the special rules that apply to lifetime memberships. 

GST/HST Info Sheet GI-111 provides information on transportation services and passes provided during the transitional period.  A significant portion of this document deals with how this HST increase will be applied to supplies of passenger transportation passes.  

CRA GI-108
CRA GI-109
CRA GI-110
CRA GI-111