On April 30, 2015, the Government of Newfoundland and Labrador announced its intention to increase the rate of the Newfoundland and Labrador component of the HST to a rate of 10 per cent effective January 1, 2016, resulting in an HST rate of 15 per cent in Newfoundland and Labrador. Transitional rules are required to determine which tax rate – the existing HST rate of 13 per cent or the new HST rate of 15 per cent – would apply in respect of transactions that straddle January 1, 2016.
Transitional Rules for the NL HST Increase
This Notice provides general descriptions of transitional rules for the increase in the Harmonized Sales Tax (HST) rate to 15 per cent in Newfoundland and Labrador that will be proposed to be enacted in regulations pursuant to the federal Excise Tax Act (ETA).
