Newfoundland – Canada to raise its HST rate in 2016
Canada’s rising Harmonised Sales Tax
The Canadian province of Newfoundland and Labrador is planning to raise its Harmonised Sales Tax (HST) rate from 13% to 15% on the 1st of January 2016. HST is a combined tax made up of federal Goods & Services Tax (GST) and local Provincial Sales Tax (PST), the GST rate will remain at 5% but the PST will increase from 8% to 10%.
The recoverable amount will also be changing in 2016 and 2017; Municipalities and local service districts will receive a partial rebate on the provincial portion of the HST of:
• 25% effective January 1, 2016
• 57.14% effective January 1, 2017
So this will only be effective on the 10% PST.