On April 1, 2025, the harmonized sales tax (HST) rate on supplies made in Nova Scotia will be reduced from 15% to 14%.
How should businesses prepare?
Businesses with activities or customers in Nova Scotia should update their tax engines and matrices with the new rate, which will take effect on April 1, 2025. Also, where businesses make supplies on an HST-included basis, purchasers may expect those prices to be adjusted accordingly to reflect the reduced rate of tax.
This rate reduction for Nova Scotia will leave the province with a 14% HST rate compared to 15% in neighbouring New Brunswick, Prince Edward Island, and Newfoundland and Labrador, as well as 13% in Ontario.
Transitional rules
In general:
- 15% HST will apply where tax becomes payable before April 1, 2025; and
- 14% HST will apply where tax becomes payable on or after April 1, 2025.
Tax is generally payable the earlier of the day consideration for the supply is paid and the day it becomes due. Consideration becomes due on the earliest of:
- the day the supplier first issues an invoice;
- the actual date of the invoice;
- the day the supplier would have issued an invoice, if not for undue delay; and
- the payment due date set out on the agreement signed with the supplier.
These are the general rules, but other rules determine which rate of HST will be payable for certain types of transactions. If your business is involved in real estate or financial services, imports goods or services, uses streamlined accounting methods or pays taxable benefits, other transitional rules may need to be considered.
How can BDO help?
Our team can assist you in understanding your obligations regarding any transitional rules once introduced, ensuring that your systems are updated to reflect these changes.
The information in this publication is current as of March 17, 2025.
This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO Canada LLP to discuss these matters in the context of your particular circumstances. BDO Canada LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.