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Tax Pulse by DMA Canada - Commodity Tax

by DMA Staff | Jun 23, 2016
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Prepare for Canadian Sales Tax Changes in 2016


There are a number of GST/HST changes coming up in 2016 that businesses will need to be aware of:

  • Ontario will see the Recapture Input Tax Credit (RITC) rate that applies to Large Businesses continue to be phased out to 50 percent from 75 percent effective July 1, 2016.

  • Newfoundland and Labrador is planning to increase the provincial component of the HST from 8 percent to 10 percent effective July 1, 2016. This will result in a combined HST rate of 15 percent.  

  • New Brunswick plans to increase the provincial component of the HST from 8 percent to 10 percent effective July 1, 2016. This will result in a combined HST rate of 15 percent.  

  • Prince Edward Island is also planning to increase the provincial component of the HST from 9 percent to 10 percent effective October 1, 2016. This will result in a combined HST rate of 15 percent. 

 
Businesses registered for the GST/HST and who make taxable supplies in these HST provinces will need to ensure their systems are updated to accommodate these changes. 

Please do not hesitate to contact your local DMA office should you have specific questions or requests.