As provincial governments continue to spend more than their tax revenue, they continue to find ways to increase their revenue. A number of provinces in Eastern Canada have announced increases to their HST rates, which will take effect at some point in 2016, including:
- Effective July 1, 2016, Newfoundland and Labrador will be increasing their HST rate from 13% to 15%. Also announced in their budget is the Newfoundland government will eliminate the HST point of sale rebate on books purchased by individuals.
- New Brunswick announced they will increase the HST from 13% to 15%, also effective July 1, 2016.
- Prince Edward Island will be increasing their HST rate from 14% to 15% effective October 1, 2016.
After all of these changes come into effect, it will leave Ontario as the only harmonized province that does not have a 15% HST rate.
If you are a company that is shipping across Canada, you should ensure that your accounting and invoicing software is updated to reflect these changes.
Article written by: Greg Sawatsky, MAcc, CPA, CA