As a Canadian, you may need to pay different kinds of sales taxes, like the Provincial Sales Tax (PST), Retail Sales Tax (RST) or Quebec Sales Tax (QST). Those taxes vary based on where the product or service is being supplied, which can make things a bit complex if you want to calculate them before a purchase. Fortunately enough, calculating sales tax in Newfoundland and Labrador is relatively easy.
Read this to gain some more knowledge about sales tax in Newfoundland and Labrador.
Sales Tax In Newfoundland And Labrador
Newfoundland and Labrador applies a 15% total tax rate to most in-province purchases. This rate is called the Harmonized Sales Tax (HST). It’s a combination of a 5% Goods and Services Tax (GST or General Sales Tax) and a 10% Provincial Sales Tax (PST).
How To Calculate The Sales Tax In Newfoundland
As an example, let’s say you purchase an item for $100 in NL:
| Purchase Price Before Taxes | Applied HST | Total Cost Of Purchase After Taxes |
| $100 | PST (10%) + GST (5%)= HST (15%): $15 | $115 |
Are There Any Items That Are Exempt From Sales Tax In Newfoundland?
In Newfoundland and Labrador, most sales tax exemptions come from the 5% federal portion, but some can apply to the 10% provincial portion too.
Certain categories of goods and services may be exempt from the provincial portion of the HST as well. These benefits are different from any national tax rebates or exemptions. Eligible categories for sales tax exemptions include print and audiobooks.
NL First Nations Tax Exemptions
If you’re a registered member of a First Nations community, you can also receive tax exemptions and rebates on both the federal and provincial parts of the HST. For these benefits to apply, eligible goods and services must be purchased and used on a reserve.
How Are You Taxed When Your Purchase An Item Online From Another Province?
When you buy a good or service, it’s the merchant’s responsibility to apply the correct tax rate based on your location or the destination address of the purchase.
Purchase Made In Newfoundland
If you’re buying the item or service in the same province or territory as the merchant, you’ll pay the rate assigned to that region, which is HST, in the case of Newfoundland and Labrador.
Purchase Made Outside Of Newfoundland
If you buy something online from an area outside of your home province, you must pay the sales tax rate of the province or territory where the item will end up or the service will be performed. Here are some simple examples to show you what we mean:
- If you buy a microwave from a store in NL (whether you live there or you’re just passing through), you just have to pay the Newfoundland sales tax of 15%.
- If you purchase the same microwave from an online store in British Columbia, you’ll still have to pay the Newfoundland sales tax rate of 15% if you’re having the microwave delivered to you in Newfoundland.
Are you a parent to a child under 18? You may qualify for the NLCB.
Get The GST/HST Tax Credit To Offset The Sales Tax In Newfoundland
If you’re a Canadian with a low to moderate income, you can obtain a quarterly payment to offset the sales taxes you pay on items throughout the year. Those eligible for the GST/HST credit can receive up to $467 if they’re a single individual. $612 if they have a partner. And up to $161 for each child they have under 19 years of age.
When Will You Receive The GST/HST Credit In Newfoundland?
The federal government pays the GST/HST Tax Credit quarterly on:
- January 5th
- April 5th
- July 5th
- October 5th
Additional Tax Credits In Newfoundland
To help offset some of the income tax and sales tax paid on purchases, the provincial government offers numerous tax credits to its citizens:
- Physical Activity Tax Credit - This credit was introduced in 2021 and offers up to $2,000 per household, for families who wish to sign their children up for sports.
- Newfoundland And Labrador Income Supplement And Seniors’ Benefit - These two tax credits are refundable and can be collected by individuals, families and seniors who have low incomes. Eligible NL residents will receive payments four times per year, at the same time as their quarterly GST/HST Tax Credit.
- Low Income Tax Reduction - This tax credit also provides financial assistance to NL residents in lower income tax brackets. With this benefit, those who fall within certain income brackets will have all or some of their provincial income taxes eliminated.
Sales Taxes And Businesses In NL
If you want to own a business in Newfoundland and Labrador, there are a couple of important tax-related steps you need to take, including:
Register For In-Province Sales Taxes
To operate a business in NL, you must register it for GST/HST through the Canada Revenue Agency (CRA). However, your business may be considered a “small” supplier and exempt from paying GST/HST if it earns less than $30,000 over 4 consecutive calendar months.
Learn How To Tax Out-Of-Province Sales
The sales tax a business charges varies according to where it supplies its products or services. If you deliver an item to another province or territory, you must apply that region’s sales taxes. If the client buys it from your physical business, you charge NL’s provincial taxes.
FIND OUT HOW TO GET A:
Trying To Calculate Sales Tax In Newfoundland And Labrador?
Just apply the 15% HST to your purchases. Before you buy a product or service in NL, make sure to consider that 15%. It will increase the final price of the product or service you’re buying.
Sales Tax In Newfoundland FAQs
How much is the HST in NL?
- $2.50 (5% GST) + $5.00 (10% PST) = $7.50 (15% HST)
- $50.00 + $7.50 = $57.50
