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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, Ontario, British Columbia
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 CRA at:
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1-800-959-5525 (English)
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1-800-959-7775 (français)
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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).
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