The Harmonized Sales Tax (HST) is administered by the federal government and applies to all goods and services with some exceptions. It combines the federal Goods and Services Tax (GST) of 5 per cent and Nova Scotia’s value-added tax of 8 per cent.
The HST relies on the same tax base, legislation, input tax credits and tax returns as the federal GST.
The HST is a value-added tax levied on the additional value of goods or services at a point of production or exchange. Although businesses pay the HST on their inputs, they are generally eligible to recoup this tax expenditure through input tax credits.
The HST differs from retail sales taxes in other provinces (PEI, ON, MB, SK and BC) in that it applies to both goods and services and it provides input tax credits to businesses to offset the taxes paid in input.
Additional information on the
administration of HST.
Additional information on
HST Rebates.