When you buy goods and services in Canada, you’ll have to pay different kinds of sales taxes on them, which vary by region. For instance, a specific percentage of Provincial Sales Tax (PST) applies in every province.
Some sales taxes are also specific to the province or territory where a product is being delivered or a service is being carried out. Today, let’s look at sales tax in Nova Scotia.
Sales Tax In Nova Scotia
In Nova Scotia, they combined the 10% Provincial Sales Tax (PST) with Canada’s 5% General Sales Tax (GST) to form a 15% Harmonized Sales Tax (HST). Today, regional businesses apply this rate to most products and services.
Sales Tax Formula For Nova Scotia
Calculating the sales taxes in Nova Scotia is relatively easy. Here’s an example:
- Sales Tax Formula For Nova Scotia = Purchase Amount Before Taxes + 15% HST
| Purchase Price of Item Before Tax | $200.00 |
| 10% PST | $20.00 (10% x $200) |
| 5% GST | $10.00 (5% x $200) |
| Total Taxes (15% HST) | $30.00 |
| Total Purchase Price With After Tax | $230.00 |
Sales Tax Exemptions In Nova Scotia
Nova Scotia allows residents to qualify for a number of tax exemptions and rebates on the 5% provincial part of the HST, most of which also apply to the 10% federal portion. These exemptions and rebates are granted separately from those on a national level. Some vendors don’t even charge HST on certain categories of goods and services.
Sale Tax Exempted Categories Include
- Children’s clothing and footwear
- Diapers
- Paper and audiobooks
- Feminine hygiene products
First Nations Tax Exemptions
In Nova Scotia, registered members of First Nations communities are able to qualify for rebates on both the federal and provincial portions of the HST, as long as any applicable goods or services are bought and used on reservation land.
What Happens If You Make A Purchase Online From A Store In Another Province?
Whether you live in a particular region of Canada or you’re just passing through, it’s important to understand how sales taxes work there. While applying the right taxes is the vendor’s responsibility, you must deal with the specific sales tax rate of the province or territory where a product is being delivered or a service is being fulfilled.
This rule applies when purchasing something online or in person. Here’s an example:
- If you buy an oven at an appliance store in Nova Scotia, you’ll pay the 15% HST.
- Then you find the same oven for sale online in Alberta, only at a cheaper price.
- Unless you’re physically buying the item in Alberta you’ll be required to pay the sales tax of the province you live in. As such, if you buy the oven online and delivered it to NS, you’ll have to pay Nova Scotia’s 15% HST rate.
Interested in information about the Nova Scotia Disability Support Program?
Sales Taxes And Businesses In NS
Before you can operate a business in Nova Scotia, there are two things you must do:
Register For Sales Taxes
In Canada, businesses that make $30,000 or less over four consecutive calendar months are sometimes exempt from registering for sales taxes, since they may be considered small suppliers. If your business earns more than $30,000 per four months, you must register it for GST/HST.
Learn How To Tax Out-Of-Province Sales
The type of sales tax you charge out-of-province clients depends on where your business supplies the purchase. If they buy an item from your physical store in NS, you charge HST. If they order it from another province/territory, you apply that region’s sales taxes upon delivery.
FIND OUT HOW TO GET A:
Do You Qualify For The GST/HST Tax Credit In Nova Scotia?
The GST/HST Tax Credit is a financial aid program provided by the federal government. It offers a quarterly payment to Canadians who have low to moderate incomes, as a way to offset the sales taxes they pay throughout the year. You can get up to $467 if you’re a single individual and up to $612 if you have a partner. If you have children under 19, you can get an additional $161 for each child.
Once an individual’s income surpasses a certain amount a year, any payments they’re receiving will be periodically reduced until the GST/HST Tax Credit reaches zero.
GST/HST Tax Credit Payment Dates In NS
This GST/HST Tax Credit is paid quarterly each year on the 5th of each month:
- January 5th
- April 5th
- July 5th
- October 5th
Note, these tax credits may be paid out under the term “Canada FPT” when you qualify for other government benefits such as the Canada Child Benefit (CCB).
Other Nova Scotia Tax Credits
Nova Scotia has its own tax system, which isn’t too different from those in other provinces and territories. Many NS provincial taxes and credits can even accompany similar tax credits that are normally accessible through the federal government.
However, some provincial tax credits are only available to Nova Scotia residents, like:
- The Nova Scotia Child Benefit – If your family’s adjusted net income is lower than $26,000, you’ll receive $1,275 per year for each child you have. Families whose net incomes are between $26,000 and $34,000 can get $1,275 for the first child, and half that rate ($637.50) for each subsequent child.
- The Poverty Reduction Credit – This tax credit is based on your tax income filing from the previous year and you don’t need to apply for it. It offers up to $41.67 per month, to a yearly total of $500.
- The Affordable Living Tax Credit – The ALTC is another provincial tax credit that offers quarterly payments to NS residents with low-to-moderate incomes.
- Basic Needs Assistance – If you require financial assistance with your basic needs, like shelter, food or clothing, the NS Government can grant you a monthly payment to help cover them.
Sales Tax In Nova Scotia FAQs
How much is HST in Nova Scotia?
What’s the difference between GST and HST?
Is sales tax added to a price tag?
Buying A Product Or Service In Nova Scotia?
Then remember to factor in the sales taxes you have to pay on it, since they can make your purchase more expensive than you were originally hoping. Sales taxes are a tedious but necessary part of Nova Scotia’s economy, so it’s best to prepare yourself financially and find out what kinds of tax benefits you can receive after you pay them.
