News and Insights

Transitional Rules Released for the Newfoundland and Labrador HST Rate Increase

Tax Development Jul 20, 2015

The province of Newfoundland and Labrador has published a guide to outline the transitional rules for the increase in the Harmonized Sales Tax (HST) rate, from 13 to 15 percent, effective January 1, 2016. Transitional rules provide a standard methodology for determining the applicable tax rate for transactions that straddle the implementation date.  Specific rules cover topics such as tangible personal property, services, leases and licences, intangibles, and real property.  

A public service body rebate has also been introduced for municipalities, effective January 1, 2016, which will provide municipalities with a rebate equivalent to 25 percent of the provincial component of the HST paid.  The rate is proposed to increase to 57.14 percent effective January 1, 2017.

For more information, please see the link below:

Transitional Rules for the Newfoundland and Labrador HST Rate Increase