Harmonized Sales Tax (HST)

On April 1, 1997, HST combined the existing provincial sales tax systems with the GST in New Brunswick, Newfoundland and Labrador, and Nova Scotia (participating provinces). The HST uses the same set of operating rules as the GST, which are set out in Part IX of the Excise Tax Act. Goods and services sold or provided in the participating provinces previously taxable for GST purposes are now taxable at the HST rate of 14%.

Administration

The HST applies to the same base of goods and services as GST. Goods and services that are exempt and zero-rated under the GST will be exempt and zero-rated under the HST. Existing GST registrants are responsible for collecting HST on sales and paying HST on their purchases made in the participating provinces. The HST and GST collected will be included and remitted on the GST return as tax collected. HST and GST paid on purchases will also be combined on the GST return. There is no need to segregate GST and HST for reporting purposes.