Upcoming HST Changes — Get Systems and Processes Ready | KPMG | CA

Upcoming HST Changes — Get Systems and Processes Ready

Upcoming HST Changes — Get Systems and Processes Ready

May 9, 2016, No. 2016-27.Businesses across Canada must ensure that they prepare for upcoming HST changes and complete any appropriate adjustments to their systems and processes. These upcoming HST changes will affect businesses located in New Brunswick, Newfoundland and Labrador, Ontario and Prince Edward Island, as well as businesses that have activities in those provinces.

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It is important to prepare for these changes as soon as possible since GST/HST applies to most transactions and errors in systems and processes can multiply quickly and become very expensive. 

Overview of upcoming HST changes

The following HST regimes in Canada will see significant changes in the coming months: 

  • New Brunswick plans to increase its HST to 15% (from 13%) effective July 1, 2016
  • Newfoundland and Labrador plans to increase its HST to 15% (from 13%) effective July 1, 2016 and reinstate a 15% retail sales tax on some insurance premiums
  • Ontario will continue to phase out the recaptured input tax credit (ITC) rules that apply to large businesses by reducing the recapture rate to 50% (from 75%) effective July 1, 2016
  • Prince Edward Island plans to increase its HST to 15% (from 14%) effective October 1, 2016.

Download this edition of the TaxNewsFlash to learn more.

Disclaimer

Information is current to May 6, 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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