Posted on May 19th, 2016 by Gregory M. Sawatsky in Commodity Tax (HST), Domestic Tax

HST Rate Changes for 2016

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.


About the Author

Gregory M. SawatskyPartner | MAcc, CPA, CA

As a Partner in the tax services area, Greg provides GST/HST, corporate, personal and estate tax services for the Hamilton and Halton regions.
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