New Brunswick — Transitional Rules for Upcoming HST.. | KPMG | CA

New Brunswick — Transitional Rules for Upcoming HST Increase to 15%

New Brunswick — Transitional Rules for Upcoming HST..

April 1, 2016, No. 2016-16.New Brunswick has released general descriptions of the transitional rules for its proposed upcoming increase of the HST to 15% (from 13%) in New Brunswick on July 1, 2016. Businesses across Canada, as well as non-resident businesses that are registered for GST/HST, should review these new rules, particularly if they are required to collect New Brunswick HST on their sales or if they are subject to special rules for financial institutions. Businesses and other organizations must ensure that their systems and processes are adjusted to reflect the upcoming HST rate increase.


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According to New Brunswick, suppliers would generally be required to collect 15% HST on the consideration that becomes due without having been paid, or is paid without having become due, on or after July 1, 2016 for supplies of taxable property or services. The 13% HST would generally apply to any consideration that becomes due or is paid before July 1, 2016.

In general, the consideration for a supply becomes due on the earliest of:

  • The day the supplier first issues an invoice for the supply
  • The date on the invoice
  • The day the supplier would have, but for an undue delay, issued an invoice for the supply
  • The day the purchaser is required to pay that consideration pursuant to a written agreement.

Download this edition of the TaxNewsFlash to learn more [PDF 76.6 KB].


Information is current to March 31, 2016. The information contained in this TaxNewsFlash-Canada is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

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