VATLive > Blog > VAT > Canada New Brunswick 15% HST update - Avalara

Canada New Brunswick 15% HST update

  • Apr 8, 2016 | Richard Asquith

Canada New Brunswick 15% HST update

The Canadian province New Brunswick has published implementation guidance for the 1 July 2016 rise in Harmonized Sales Tax (HST) from 13% to 15%.

The guidance covers some of the following issues:

  • The new rate will apply to all transactions on the earliest of: invoice date; or the payment date. Any delays to either of these two dates will not make them invalid for determining the rate to use.
  • Anti-avoidance measures
  • The VAT rate treatment for: imports of goods and services into the province; and credits and returns of goods.
  • Transitional guidance on specific industries such as financial services, real estate and land
  • The current GST/HST anti-avoidance rules will apply to transactions subject to these transitional rules but it appears that other anti-avoidance rules could be implemented if required.

HST is a combination of federal Canadian Goods & Services Tax (5%), and New Brunswick's provincial sales tax (10%).

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.