We have just been advised by the Department of Finance of the provincial government’s transition plan for the increase in the provincial portion of the Harmonized Sales Tax (HST) from 8% to 10%, effective July 1, 2016.

There are a series of transitional rules that are required to determine which tax rate (the existing HST rate of 13% or the new HST rate of 15%) will apply with respect to transactions which straddle the July 1, 2016 implementation date.

A link to the general HST transitional rules follows:

http://www.fin.gov.nl.ca/fin/tax_programs_incentives/personal/transitional_rules.html

For further information on the general transitional rules, please contact the Canada Revenue Agency’s Business enquiries line at 1-800-959-5525 (English service) or 1-800-959-7775 (French service).

For further information on the transitional rules for sales of real property, please contact the Canada Revenue Agency’s technical GST/HST enquiries line at 1-800-959-8287 (English service) or 1-800-959-8296 (French service).