The New Brunswick government announced in its 2016 budget¹ that its HST rate will be increased from 13 per cent to 15 per cent, effective July 1, 2016. Even for organizations that do not carry on business in New Brunswick, they are required to collect GST/HST at the appropriate rate for taxable supplies made anywhere in Canada.
The province released a new notice, “Transitional Rules for the New Brunswick HST Rate Increase,” on March 30, 2016, that outlines the transitional rules in respect of the rate change. Transitional rules are necessary to determine whether the existing HST rate in New Brunswick of 13 per cent or the new HST rate of 15 per cent will apply to transactions that straddle the July 1, 2016 implementation date. The tables below set out the GST/HST rates for each province before and after July 1, 2016.
Before July 1, 2016
| Province | GST/HST rate |
| Nova Scotia | HST at 15% |
| Prince Edward Island | HST at 14% |
| Ontario, New Brunswick, Newfoundland & Labrador | HST at 13% |
| Anywhere else in Canada | GST at 5% |
As of July 1, 2016
| Province | GST/HST rate |
| Nova Scotia, New Brunswick | HST at 15% |
| Prince Edward Island | HST at 14% |
| Ontario, Newfoundland & Labrador | HST at 13% |
| Anywhere else in Canada | GST at 5% |
For more information on how this rate change may impact your organization, click on the link below to the New Brunswick Finance Website or contact Frederic Pansieri.
