New Brunswick's Hst Status

New Brunswick charges a 15% Harmonized Sales Tax (HST), which is a combination of a 10% provincial sales tax and a 5% federal sales tax. This tax came into effect on April 1, 1997, after the Government of New Brunswick and the Government of Canada signed the Comprehensive Integrated Tax Coordination Agreement (CITCA) on October 18, 1996. The HST is applied to most goods and services, with some exemptions and rebates available, particularly for First Nations communities.

New Brunswick's HST rate

On April 1, 1997, the Canadian province of New Brunswick adopted the Harmonized Sales Tax (HST) by merging its Provincial Sales Tax with the federal Goods and Services Tax. The HST is a value-added tax, and the current rate is 15%, consisting of a 5% federal component (GST) and a 10% provincial component. This tax is applied to the same base of goods and services as the federal GST and is administered by the federal government through the Canada Revenue Agency (CRA).

The HST rate in New Brunswick has not always been 15%. It was introduced in 1997 at a rate of 13% and remained at that level until July 1, 2016, when it was increased to the current rate of 15%. This change brought New Brunswick in line with other provinces such as Newfoundland and Labrador, which also increased their HST rate from 13% to 15% on the same date.

The HST is applied to most goods and services in New Brunswick, but there are some exemptions and rebates. For example, basic groceries like meats, fish, cereals, dairy products, eggs, vegetables, coffee, and tea are zero-rated, meaning they are taxed at 0%. Prescription drugs, feminine hygiene products, residential resales of previously owned property, long-term rental accommodations, educational services, and medical and dental services are exempt from the federal portion of the HST.

Additionally, registered First Nations communities in New Brunswick receive rebates on both the provincial and federal portions of the HST for products and services bought and used on reserves. These rebates aim to support Indigenous communities by reducing the tax burden on essential goods and services.

HST in New Brunswick vs other provinces

The Harmonized Sales Tax (HST) is a consumption tax in Canada, combining the federal Goods and Services Tax (GST) and the regional Provincial Sales Tax (PST) into a single value-added tax. The HST is currently in effect in five of the ten Canadian provinces: New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, and Prince Edward Island.

New Brunswick implemented the HST on April 1, 1997, harmonising its Provincial Sales Tax with the federal Goods and Services Tax to create a 15% combined tax. The HST is composed of a 5% federal component (GST) and a 10% provincial component.

The HST rate in New Brunswick is the same as in Newfoundland and Labrador, Nova Scotia, and Prince Edward Island. However, the HST rate in Ontario is lower at 13%.

The HST is administered by the federal government through the Canada Revenue Agency (CRA), which collects the tax and remits the appropriate amounts to the participating provinces. The CRA also handles inquiries regarding the administration of the HST.

While the HST in New Brunswick and other provinces follows a similar structure, there may be variations in specific exemptions and rebates offered. For example, in New Brunswick, certain goods and services are exempt from the federal portion of the HST, including basic groceries, prescription drugs, and feminine hygiene products. Additionally, registered First Nations individuals are granted rebates on both the provincial and federal portions of the HST for products and services bought and used on reserves.

The implementation of the HST in New Brunswick and other provinces has been a subject of debate, with critics arguing that it shifts the tax burden to consumers, while proponents claim that it lowers costs for businesses and ultimately benefits consumers.

HST on basic groceries

New Brunswick charges a 15% Harmonized Sales Tax (HST) on most goods and services. The HST is made up of a 5% federal sales tax and a 10% provincial sales tax. Basic groceries are zero-rated, meaning they are taxed at 0% in every province and territory in Canada.

Basic groceries include:

• Meats
• Fish
• Cereals
• Dairy products
• Eggs
• Vegetables
• Coffee
• Tea

However, some foods are excluded from the zero-rated category, including:

• Snack foods
• Liquor
• Carbonated beverages
• Fruit beverages with less than 25% real fruit juice
• Bars (including some granola and fruit bars)
• Pre-made salads and sandwiches
• Chips, puffs, and other snack foods

HST on medical services

New Brunswick charges a Harmonized Sales Tax (HST) of 15% on most goods and services. The HST is a combination of the federal Goods and Services Tax (GST) of 5% and a provincial tax of 10%.

Medical and dental services are exempt from the federal portion of the HST. This means that while you do not pay the 5% GST on medical services, you will still be charged the 10% provincial tax.

The HST was adopted in New Brunswick on July 1st, 2010, and is administered by the Canada Revenue Agency (CRA) on behalf of the province. The HST is a value-added tax, which replaced the previous GST and Provincial Sales Tax (PST) system.

HST on vehicles

New Brunswick charges a Harmonized Sales Tax (HST) of 15% on most goods and services, including vehicles. This tax applies to vehicles purchased from a dealer within the province or brought into the province from elsewhere in Canada. The HST on vehicles is calculated based on the greater of either the actual purchase price or the value determined by industry guides such as the "red book" or "blue book".

The HST on vehicles in New Brunswick can be either the federal HST or the Provincial Vehicle Tax (PVT), depending on the nature of the transaction. The PVT is applied at a rate of 15% to vehicles purchased privately in the province or from outside the province. It is important to note that the PVT does not apply to vehicles purchased from a GST/HST registrant within Canada or from outside the country.

For individuals who buy a vehicle through a private sale, the GST/HST usually does not apply. However, a provincial motor vehicle tax may need to be paid when registering the vehicle. There are certain situations where individuals may be exempt from paying the provincial motor vehicle tax, such as when moving between participating provinces and having already paid the HST.

When purchasing a vehicle from a GST/HST registrant, such as a dealership, the HST generally applies to the sale. The rate may vary depending on factors like the place of delivery and date of registration. Additionally, individuals may be eligible for rebates or exemptions on the HST for vehicles, especially those with special equipment to accommodate disabilities.

Frequently asked questions