100% HST Rebate for NB Public Bodies

Summary#

These are the final rules called Regulations Amending Various GST/HST Regulations, No. 13 (SOR/2024-151). They put in place New Brunswick’s decision to give a 100% rebate of the provincial part of the Harmonized Sales Tax (HST) to hospital authorities, school authorities and public colleges, generally starting April 1, 2024.

What it does#

• Implements a 100% rebate of the provincial component of the HST for New Brunswick’s hospital authorities, school authorities and public colleges by changing the Public Service Body Rebate (GST/HST) Regulations.
• Adjusts certain simplified accounting rules used by suppliers (the Streamlined Accounting (GST/HST) Regulations) so they reflect the new rebate for supplies related to New Brunswick.
• Adds a targeted transitional anti‑avoidance rule in the New Harmonized Value-added Tax System Regulations. It can reduce a rebate in specific cases such as a sale and quick buyback of property where the main purpose was to benefit from the rebate.
• Confirms how the federal portion of HST is recovered under existing rules. Under current practice, eligible New Brunswick entities will recover the federal portion at rates of 83% for hospital authorities, 68% for school authorities and 67% for public colleges.
• Applies to rebates and reporting for claim periods ending after March 2024 (i.e., generally from April 1, 2024). One part of the rules is treated as having come into force on December 1, 2023 to deal with specific transitional cases.

Who's affected#

• Directly: hospital authorities, school authorities and public colleges that are resident in New Brunswick.
• Indirectly: suppliers and registrants that sell to those public bodies, and businesses or organizations that use streamlined accounting methods for HST and have operations tied to New Brunswick.
• Administrators: the Canada Revenue Agency will apply the changes; the Government of New Brunswick requested the change.
• If it’s unclear: some detailed technical rules target specific transactions (like buybacks). Those rules may affect particular deals or accounting choices; you should check with an accountant or the CRA if you have a complex transaction.

Why it matters#

• It lowers the net provincial tax cost for public hospitals, schools and colleges in New Brunswick. That can reduce operating costs for those institutions or change pricing for services they buy.
• Suppliers and organizations using simplified accounting will need to update how they calculate and report HST for New Brunswick-related supplies.
• The anti‑avoidance rule aims to stop people from structuring deals just to get the rebate. That protects the policy’s intended effect and revenue outcomes.
• This is a provincial tax policy put into federal regulations so it can be applied under the HST system. The government expects only minor administrative updates from the Canada Revenue Agency and affected institutions.