Taxes - Harmonized Sales Tax (HST)

Overview

Effective April 1, 1997, New Brunswick harmonized its Provincial Sales Tax with the federal Goods and Services Tax to create the Harmonized Sales Tax (HST).

The HST is a value-added tax and is composed of the federal GST and a provincial component. The HST is applied to the same base of goods and services as the federal GST base. This means the HST is applied to all goods and services taxable under the federal Excise Tax Act.

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 (CRA).

Eligibility

All taxable goods and services purchased in New Brunswick from a GST/HST registrant are subject to the HST. Although the provincial portion of the HST returns to New Brunswick, this tax is administered by the federal government. Any inquiries on the Harmonized Sales Tax should be made to the Canada Revenue Agency (1-800-959-5525).

Description

Generally, the HST is collected by the GST/HST registrant at time of purchase. However, there may be instances where either this department or a Service New Brunswick Centre must collect the provincial component of the HST in cases where it has not been collected.

Part IV of the Harmonized Sales Tax Act provides for credits/refunds of the provincial component of the HST for the following:

• Printed books, audio recordings and scriptures (provincial component exempted at time of purchase).
  
• Research and Development (refund may apply upon submission of refund application and supporting documents).
  
• Specially Equipped Vehicles (refund may apply upon submission of refund application and supporting documents).