New Brunswick is increasing its HST by 2%, effective July 1, 2016, resulting in an HST rate of 15%.
Businesses will need to consider which tax rate – the existing HST rate of 13% or the new HST rate of 15%, will apply to transactions that straddle July 1, 2016.
Under the transitional rules, suppliers of tangible personal property will generally be required to charge HST at the rate of 15% on consideration that becomes due, or is paid without having become due, on or after July 1, 2016.
Generally speaking, if a supplier invoices:
- before July 1, 2016, HST at the rate of 13% should be collected on the taxable supply;
- on or after July 1, 2016, HST at the rate of 15% should be collected on the taxable supply.
The delivery date of the goods is not relevant to determining the applicable tax rate.
For specific information on how the transitional rules apply, consult a tax professional.