News and Insights

Newfoundland and Labrador Eliminates RST on Automobile Insurance Premiums

Tax Development Jul 09, 2019

The Government of Newfoundland and Labrador has eliminated the 13% retail sales tax (RST) on automobile insurance. The RST elimination was confirmed through the issuance of Bulletin No. RAA-RST-001: Retail Sales Tax on Automobile Insurance Premiums. The change is applicable retroactive April 15, 2019.

Following the change, insurance companies, agents, and brokers are no longer required to collect RST on automobile insurance purchased or renewed on or after April 15, 2019. To ensure a seamless transition process, the province provided guidance in the Bulletin on how the RST elimination is to be applied to automobile insurance purchased before, on, or after the effective change date.