On April 1, 2025, the rate of GST/HST in Nova Scotia will be reduced from 15% to 14%.
The change is the first GST/HST rate change across Canada since 2016 and is a result of a reduction to the provincial portion of HST in Nova Scotia from 10% to 9%. The new GST/HST rate applies only to supplies made within Nova Scotia. With that in mind, it’s important to pay close attention to the place of supply rules, especially in cases where goods or services cross provincial borders.
For taxable supplies in Nova Scotia, organizations should review their process to ensure that the following rates are applied:
- The GST/HST at a rate of 15% applies if it becomes payable before April 1, 2025.
- The GST/HST at a rate of 14% applies if it becomes payable on or after April 1, 2025.
Transitional Rules
There are rules in the Excise Tax Act which govern when the tax becomes payable for any transactions that may straddle the April 1, 2025 date. Generally, GST/HST is payable earlier if:
- The day the consideration is paid; and
- The day the consideration becomes due – which is generally the earliest of:
- The earlier of the day an invoice is issued and the date of the invoice;
- The day invoice would have been issued, but for undue delay; and
- The day the recipient is required to pay the consideration pursuant to written agreement.
There are always exceptions to these timing rules in specific scenarios, for example, on the sale of real property.
While this currently only impacts the rate of tax in Nova Scotia, this change will impact businesses in other provinces such as Ontario where they supply goods or services into the Province of Nova Scotia.
Closing Comments
A summary of all current and historical GST/HST rates can be found here: Charge and collect the tax – Which rate to charge – Canada.ca
For assistance with GST/HST, contact us and ask to speak to a member of our Indirect Tax team.
