Government of New Brunswick

Disclaimer: This is intended to provide information respecting the Harmonized Sales Tax (HST) in the Province of New Brunswick under the Excise 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 10%. The HST is applied to the same base of goods and services as the federal GST base. This means the 15% HST is applied to all goods and services taxable under the federal Excise Tax Act.

Other participating provinces include Newfoundland and Labrador, Ontario, Prince Edward Island  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 15% and is composed of a federal component of 5% (GST) and provincial component of 10%.

 

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:

  • 1-800-959-5525 (English)
  • 1-800-959-7775 (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  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 (10%) 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 10% provincial component of the tax. For more information regarding taxation exemptions under the Harmonized Sales Tax, please contact Canada Revenue Agency.

Research and Development

The Province provides a refund of the 10% 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 Administration Division, Department of Finance at 1-800-669-7070.

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 10% 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 Administration Division, Department of Finance at 1-800-669-7070.

Along with the application the claimant must submit the following necessary supporting documents:

  1. copy of Bill of Sale and/or New Brunswick Tax Receipt;
  2. 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
  3. 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;
  4. 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 15% 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).