The HST rate applicable to transactions taking place in Nova Scotia will be reduced from 15% to 14% effective on April 1, 2025. More specifically:
- HST that became payable before April 1, 2025 will remain payable at a rate of 15%.
- HST that becomes payable on or after April 1, 2025 will be payable at a rate of 14%.
- The day the consideration for a supply is paid;
- The day the invoice for the supply is issued by the supplier;
- The date of the invoice from the supplier; and
- The payment due date in accordance with an agreement in writing between the supplier and the recipient
Transactions on real properties situated in Nova Scotia that are supplied by way of sale will be subject to specific HST transitional rules:
- If either ownership or possession of the real property is transferred to the purchaser before April 1, 2025, the HST at a rate of 15% will be payable;
- If both ownership and possession of the real property is transferred to the purchaser on or after April 1, 2025, the HST at a rate of 14% will be payable;
Specific transitional rules have also been introduced for deemed supplies of real property, for the importation of goods and services into Nova Scotia and for the calculation of HST on certain employee taxable benefits. Other consequential changes will include changes to the remittance rates for registrants using the Streamlined Accounting Methods.
Businesses with activities in or selling to clients located in the province of Nova Scotia should ensure that their invoicing and accounting systems have been updated to comply with the upcoming changes. There are currently no plans for any province neighboring Nova Scotia to follow suite with their own HST rate reduction. Effective on April 1st, the province will be the only Canadian jurisdiction with a 14% sales tax rate.