Are you ready for the increase in the New Brunswick HST Rate on July 1st? The following table outlines whether 15% HST applies or 13% on transitions that straddle the July 1, 2016 implementation date:
New Brunswick HST Rate Increase Transitional Rules
| TRANSACTION DESCRIPTION | RATE BEFORE JULY 1, 2016 | RATE ON OR AFTER JULY 1, 2016 | NOTES | |||
|---|---|---|---|---|---|---|
| Sale of Goods | 13% | 15% | 1,2 | |||
| Sale of Subscriptions | 13% | 15% | 1,2 | |||
| Sale of Services | 13% | 15% | 1,2 | |||
| Leases and Licenses | 13% | 15% | 3 | |||
| Sales of Intangible Property | 13% | 15% | 1,2 | |||
| Sales of Real Property | 13% | 15% | 4,5,6 | |||
| Returns and Exchanges on Goods Purchased before July 1, 2016 | 13% | 13% | 7,8 | |||
| Imported Goods | 13% | 15% | 9 | |||
| Imported Taxable Supplies | 13% | 15% |
- For invoices issued after July 1 for deliveries before July 1, 15% rate applies.
- 13% applies where the payment is due or is paid before July 1.
- For invoices issued before July 1 for a lease interval for lease periods after that date 13% applies
- Both Ownership AND Possession must transfer after July 1 for 15% to apply
- Grandparenting rules exist if the agreement is entered into prior to March 30, 2016
- Builders required to disclose to the government those housing sales that are entered into in the transitional period
- Provided the property is returned and a refund of all or part of the consideration is given
- Straight exchanges will not result in a tax adjustment. However, if there is a charge for the replacement 15% applies
- Goods received in New Brunswick after July 1, 2016 will be subject to 15%
Download our New Brunswick HST Rate Increase Transitional Rules Table by Clicking Here
