Newfoundland and Labrador have released transitional rules relating to the increase in the rate of the harmonized sales tax (HST) to 15% and that will be effective beginning 1 July 2016.
The 2016 provincial budget announced the increase in the rate of the HST from 13% to 15%. Certain businesses—especially builders—have been affected by these rules beginning 3 May 2016.
Based on the transitional rules, for many supplies, suppliers are generally 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 1 July 2016.
Read a May 2016 report [PDF 63 KB] prepared by the KPMG member firm in Canada: Newfoundland and Labrador HST Increase – Transitional Rules Released
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