Quick answer
HST in Newfoundland and Labrador is 15%, the federal GST and the province’s sales tax combined into a single tax, and it has not changed since July 1, 2016.1,2 Two things beside it catch businesses out. Many insurance premiums carry a separate provincial retail sales tax that is not HST and cannot be claimed back,3 and a fish harvester’s catch and much of the gear are zero-rated.4
How does HST work in Newfoundland and Labrador?
The province folded its sales tax into the GST, so most goods and services supplied here carry one tax at 15%.1 It rose from 13% to 15% on July 1, 2016, when the province raised its part of it.1,2 Under its agreement with the federal government, the province can change its part of the rate no more than once in any twelve-month period.1
Being registered for the GST means being registered for the HST, and a registrant charges it on taxable sales made in the province.5 Whether a business has to register at all is the small supplier test, which the general guide to when a business has to register sets out.
What is the retail sales tax on insurance?
Separately from the HST, the province charges a retail sales tax on premiums for insurance relating to property, risk, peril or events in Newfoundland and Labrador.3 For a business, that typically means its property and liability policies. Several kinds of insurance are exempt, including:3
- automobile insurance
- life insurance, and accident and sickness insurance
- marine insurance on watercraft used for commercial purposes
- surety, guarantee and fidelity insurance
- personal property insurance
The insurer or agent that bills the premium collects the tax and shows it separately on the invoice. Coverage bought from an out-of-province seller that is not registered to collect it is self-assessed and paid to the province directly.3
How does HST apply to fishing?
Most of a harvester’s sales and much of the gear are zero-rated: taxable, but at a rate of zero.4
- The catch. Fish and other marine animals sold no further processed than frozen, salted, smoked, dried, scaled, eviscerated or filleted are zero-rated. Fish not ordinarily eaten, or sold as bait for recreational fishing, are taxable.4
- Fishing vessels. A vessel bought for commercial fishing is zero-rated when the buyer gives the seller a signed declaration of that use, the commercial fishing licence number and, on the Atlantic coast, the vessel’s registration number, along with the buyer’s GST/HST number.4
- Nets and equipment. Gill-nets, seines, trawl-nets, net drums, automatic baiters and jiggers and other listed items are zero-rated.4
Zero-rated sales still let a registrant claim input tax credits on the purchases used to make them,5 which can leave a registered harvester’s return showing a refund. The income records a harvester keeps are covered in our guide to the province’s business dates.
Which rate applies on sales to other provinces?
It depends on where the sale is made for tax purposes, its place of supply.6 Goods take the rate of the province where they are delivered, so a St. John’s business shipping to Halifax charges Nova Scotia’s 14%, not 15%, while a customer who collects the goods here pays this province’s rate.7,2 A service generally follows the customer’s home or business address in Canada, and work on land or a building follows where the property is.7
| The sale | Place of supply |
|---|---|
| Goods shipped to a customer | The province they are delivered to |
| Goods collected by the customer | The province where they are handed over |
| Most services | The customer’s home or business address in Canada |
| Work on land or a building | Where the property is |
Is there a point-of-sale rebate here?
Only on books. A retailer credits the provincial part of the HST at the till, so the buyer pays only the federal part. Audio books and printed scripture count as books; e-books, newspapers, magazines and agendas do not.5 If a retailer does not credit it, the buyer can claim it back afterwards on a general rebate application.5
What does the return need from the books?
- taxable and zero-rated sales recorded apart, so a harvester’s or a retailer’s mix is reported as it was earned
- HST paid on business purchases, backed by the supplier’s documents before it is claimed8
- the insurance tax kept out of the HST account entirely
- sales shipped to other provinces recorded at the rate charged there
An input tax credit that was missed can usually still be claimed on a later return, within the CRA’s time limit.8 Missing documents are harder to fix than missing entries, which is why the documents come first.
Frequently asked questions
Does Newfoundland and Labrador have a provincial sales tax?
Not a separate one on most goods and services: the provincial part is built into the HST.1 Insurance premiums are the exception, with a retail sales tax of their own.3
Can I claim the insurance tax as an input tax credit?
No. The province says the retail sales tax on insurance premiums is not HST, so it is not eligible as an input tax credit.3
Do I charge HST when I sell my catch?
Not on fish sold fresh or with only light processing, such as freezing, salting, smoking, drying or filleting; those sales are zero-rated. Fish sold as bait for recreational fishing is taxable.4
Sources
- Harmonized Sales Tax, Government of Newfoundland and Labrador, Department of Finance. Accessed .
- GST/HST calculator (and rates), Canada Revenue Agency. Accessed .
- Retail Sales Tax (RST) on Insurance Premiums Frequently Asked Questions, Government of Newfoundland and Labrador, Department of Finance. Accessed .
- Agriculture and Fishing (GST/HST Memorandum 4.4), Canada Revenue Agency. Accessed .
- General Information for GST/HST Registrants (RC4022), Canada Revenue Agency. Accessed .
- Charge and collect the GST/HST, Canada Revenue Agency. Accessed .
- GST/HST and place-of-supply rules, Canada Revenue Agency. Accessed .
- Input tax credits, Canada Revenue Agency. Accessed .
This article is general information about how things usually work in Canada, current as of the date it was last updated. It isn’t advice about your own tax or accounting position, which depends on facts we haven’t seen.