HST Rate Changes for 2016

Posted on May 19, 2016 by djb | Posted in GST/HST

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

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