On Oct. 23, 2024, Nova Scotia announced plans to reduce its harmonized sales tax (HST) rate from 15% to 14%—effective April 1, 2025. This proposed change requires the province to provide the federal government with 120 days written notice and will also require legislative changes. It is expected that transitional rules will be announced to address situations where supplies straddle the implementation date.
How should businesses prepare?
Businesses with activities or customers in Nova Scotia should monitor this proposed change and be prepared to update their tax engines and matrices once the effective date is confirmed. Supplies of property or services that straddle the implementation date may be subject to specific transitional rules. Also, where businesses make supplies on an HST-included basis, purchasers would be expecting those prices to be adjusted accordingly to reflect the reduced rate of tax.
Implementation of this rate reduction for Nova Scotia would leave the province with a 14% HST rate compared to 15% in neighbouring New Brunswick, Prince Edward Island, and Newfoundland and Labrador, and 13% in Ontario.
How can BDO help?
Our team can assist you in understanding your obligations regarding any transitional rules once introduced and ensuring that your systems are updated to reflect these proposed changes, if and when implemented.
The information in this publication is current as of October 24, 2024.
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.