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ARTICLE · 21 MARCH 2025

Nova Scotia Set To Reduce HST Rate

Millar Kreklewetz
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On April 1, 2025, the Province of Nova Scotia is set to decrease their harmonized sales tax ("HST") rate by 1 percentage point, resulting in a HST rate of 14 percent in the province.

CanadaTax
John Bassindale
John Bassindale
David West
David West

TRANSITIONAL AND PLACE OF SUPPLY RULES MAY AFFECT TAXPAYERS

On April 1, 2025, the Province of Nova Scotia is set to decrease their harmonized sales tax ("HST") rate by 1 percentage point, resulting in a HST rate of 14 percent in the province. The reduction will put more money in the pockets of Nova Scotians, but individuals and businesses need to be aware of the complex Transitional Rules and Excise Tax Act ("ETA") place of supply rules to determine the applicable rate of HST on their transactions.

The Nova Scotia HST Reduction – Background

In a Budget Address for the fiscal year of 2012-2013, former Nova Scotia Finance Minister Graham Steele announced that the province planned to implement the 1 percent reduction to their HST rate in 2014, with a further 1 percent reduction in 2015. Nova Scotia eventually changed course by the Budget Address for fiscal year of 2014-2015, and the proposed HST reduction for 2014 was abandoned due to its unaffordability and

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