Companies that do business in New Brunswick will be affected by the province's upcoming harmonized sales tax (HST) rate increase to 15% (from 13%) effective 1 July 2016.
New Brunswick announced the increase in its 2016 budget. With no transitional rules yet available and only a few months before the increase takes effect, businesses need to consider preparing now for the HST rate increase by determining what changes need to be made to systems and processes, among other considerations.
Also, businesses that are not entitled to claim full input tax credits for the HST paid may want to consider accelerating certain purchases to help limit the short-term impact of the tax increase. Whether this option is beneficial may become clear once transitional rules are released.
Read a February 2016 report [PDF 54 KB] prepared by the KPMG member firm in Canada: Prepare Now for New Brunswick’s Upcoming HST Rate Increase
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