Disclaimer: This is intended to provide information respecting the Harmonized Sales Tax (HST) in the Province of New Brunswick under the Harmonized Sales Tax Act (the Act). This should not be regarded as a replacement of the laws, regulations or administrative documents to which it refers.
What is the Harmonized Sales Tax (HST)?
On October 18th, 1996, the Government of New Brunswick and the Government of Canada signed the Comprehensive
Integrated Tax Coordination Agreement (CITCA), which led to the
implementation of the Harmonized Sales Tax. Effective April 1, 1997, New
Brunswick harmonized its Provincial Sales Tax with the federal Goods and
Services Tax to create a harmonized sales tax (HST).
The HST is a value-added tax and is composed of the federal GST ( 5% ) and a provincial component of 8%. The HST is applied to the same base of goods and services as the federal GST base. This means the 13% HST is applied to all goods and services taxable under the federal Excise Tax Act.
Other participating provinces include Newfoundland and Labrador and Nova Scotia.
The HST is administered by the federal government through the Canada Revenue Agency (CRA). As a
result, registrants (businesses or individuals registered to collect the
HST on taxable sales) collect one sales tax and remit and report to one
government agency.
Tax Rate
The HST rate is 13% and is composed of a federal component of 5% (GST) and provincial component of 8%.
Administration of the Harmonized Sales Tax (HST)
The Canada Revenue Agency (CRA) administers the HST on behalf of all the
participating provinces. Questions with regard to the administration of
the HST should be directed to the CCRA at:
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1-800-959-8281 (Individual) or 1-800-959-5525
(Business) English |
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1-800-959-7383 (particulier) ou 1-800-959-7775 (entreprise) français |
Who collects HST and what is a Registrant?
Businesses or individuals that are registered with Canada Revenue Agency for purposes of collecting the GST/HST are registrants (i.e. truckers, plumbers, car dealers). Please visit the CRA web site at http://www.ccra-adrc.gc.ca/E/pub/gp/rc4022/ for general information on GST/HST Registrants.
Credits / Refunds
Part IV of the Harmonized Sales Tax Act provides for
credits/refunds of the provincial component ( 8% ) of the HST for the
following:
Printed books, audio recordings and scriptures
Books, audio recordings and scriptures are taxed at the federal rate of 5% with a point-of-sale (instant!) rebate for the 8% provincial component of the tax. For more information regarding taxation exemptions under the Harmonized Sales Tax, please contact Canada Revenue Agency.
Segregated fund
New Brunswick companies offering investment services and where more than 70% of the assets of the fund are held or invested for the benefit of persons who are residents in New Brunswick may be refunded the 8% provincial component of the Harmonized Sales Tax (HST). An application shall be made to the Minister of Finance within one year after the date that the tax becomes payable in respect of the supply.
The amount of the refund is limited to the difference between the tax payable and any input tax credits eligible to be claimed.
Research and Development:
The Province provides a refund of the 8% provincial component of the Harmonized Sales Tax (HST) on a supply of property and services used directly in research and development by a university.
Applications for this refund (form HST-R-02) can be obtained at any Service New Brunswick Centre or by contacting the Revenue and Taxation Division, Department of Finance at 506-453-2404.
Along with the application the claimant must submit the following necessary supporting documents:
- certification that the supply of property and
services is used directly in research and development by a university;
- description of research/development project
to be performed;
- University Department Head approval;
- Budget and material breakdown of intended
project; and
- supporting invoices for materials obtained to complete the project.
Specially Equipped Vehicles:
The Province will refund the 8% provincial component of the HST with respect to a motor vehicle purchased in the Province where:
- the motor vehicle is specially equipped with
a device to enable a wheelchair or scooter to enter or leave the
passenger vehicle (e.g. hydraulic lifts); or
- the motor vehicle is specially equipped with
auxiliary driving controls that are used to facilitate the operation
of the passenger vehicle (does not include spinner knobs); and
- the motor vehicle is not operated by any
person for the purpose of earning a profit for any person or as part
of any undertaking carried on for gain; and
- the claimant is not eligible for any other GST/HST credit or rebate related to this purchase.
Applications for this refund (form HST-R-02) can be obtained at any Service New Brunswick Centre or by contacting the Revenue and Taxation Division, Department of Finance at 506-453-2404.
Along with the application the claimant must submit the following necessary supporting documents:
- copy of Bill of Sale and/or New Brunswick Tax
Receipt;
- proof that the motor vehicle is specially
equipped with a device to enable a wheelchair or scooter to enter or
leave the passenger vehicle; or
- proof that the motor vehicle is fitted with
auxiliary driving controls that are used to facilitate the operation
of the passenger vehicle, truck, or van;
- a letter from a medical practitioner certifying that the person who is being transported in or is operating the vehicle is permanently disabled.
Other Refunds
Any inquiries relating to all other types of Harmonized Sales Tax (HST) refunds must be directed to the Canada Revenue Agency at 1-800-959-5525.
Provincial Tax on purchases of vehicles, boats and aircraft
The Province imposes a tax of 13% on the private purchase (i.e. from a non-HST registrant) of vehicles, boats and aircraft made in the Province. For more information on this tax, please refer to the Taxation of Motor Vehicles, Boats and Aircraft in the Province of New Brunswick.
This document not only provides comprehensive information on motor vehicles, boats and aircraft taxation in New Brunswick, it also explains the difference between paying:
- HST - Harmonized Sales Tax (purchase from a
registrant/dealer);
- PVT - Provincial Vehicle Tax (motor vehicle
purchased through a private sale); or
- TPPT - Tangible Personal Property Tax (boat and or aircraft purchased through a private sale).
