Newfoundland and Labrador Sales Tax: Your 2025 Guide to HST

Navigating sales tax in Newfoundland and Labrador is essential for businesses operating in the province. As of 2025, the province uses harmonized sales tax (HST), combining federal and provincial portions into a single, streamlined tax. This Newfoundland and Labrador tax guide 2025 breaks down everything you need to know to stay compliant and confident when charging, collecting, and remitting HST.

Newfoundland and Labrador's Sales Tax System

Newfoundland and Labrador is one of the provinces in Canada employing harmonized sales tax (HST). This makes the tax system simple because it integrates both federal and provincial sales taxes. This Newfoundland and Labrador tax guide 2025 will help you learn more about HST in Newfoundland.

Newfoundland and Labrador's harmonized sales tax (HST) is straightforward. Newfoundland HST simplifies the sales tax process by requiring businesses to register, collect, and remit tax to the Canada Revenue Agency (CRA).

Thanks to NL HST’s unified approach, businesses need not deal with separate tax authorities. A single tax rate is also easier for consumers to understand at the point of sale.

What is Newfoundland and Labrador's HST?

Newfoundland HST combines the 5% federal GST and 10% provincial tax into a single 15% tax rate. Newfoundland HST applies to most goods and services sold in the province.

Here's a table where HST in Newfoundland and Labrador applies.

Category	Examples of Taxable Items/Services
Retail Goods	Clothing, electronics, furniture, appliances, home décor
Prepared Food & Beverages	Restaurant meals, takeout, catering, alcoholic drinks
Digital Products	Streaming subscriptions, downloadable software, eBooks, apps
Professional Services	Legal, accounting, consulting, graphic design, IT services
Personal Services	Haircuts, spa treatments, fitness training, tattooing
Telecommunications	Internet service, mobile phone plans, cable and satellite TV
Entertainment & Recreation	Movie and concert tickets, amusement parks, sports events
Accommodation Services	Hotel stays, Airbnb, motels (short-term accommodation under 30 days)
New Residential Housing	Sales of newly built homes (rebates may apply)
Construction & Renovation	Home renovations, plumbing, electrical work, installation services
Transportation Services	Local taxi services, ride-shares, charter bus trips within Canada
Vehicle Sales & Rentals	New and used vehicles (from dealerships), car and truck rentals
Commercial Property Leases	Rent of office or retail space
Travel Services	Canadian vacation packages, guided tours, travel insurance

Newfoundland and Labrador HST Exemptions & Rebates

Some items are exempt from sales tax in Newfoundland or are taxed at 0%. Zero-rated items include basic groceries, prescription drugs, and medical devices. On the other hand, residential rent and health services are tax-exempt.

Businesses can claim input tax credits (ITCS) for zero-rated items. However, exempt items are not charged with NL tax and businesses cannot claim ITCs for their expenses.

Here’s a table showing zero-rated supplies and common Newfoundland sales tax exemptions.

NL HST Status	Category	Examples
Zero-Rated (0%)	Basic Groceries	Milk, bread, vegetables, fruit, eggs, meat
	Prescription Drugs	Insulin, antibiotics, birth control pills
	Medical Devices	Hearing aids, wheelchairs, pacemakers, artificial limbs
	Exports	Goods shipped outside Canada, international consulting services
	Feminine Hygiene Products	Sanitary napkins, tampons, menstrual cups
	Agricultural Supplies	Most seeds, feed, and fertilizers
Exempt (No NL HST)	Residential Rent	Long-term apartment or house rentals
	Health Care Services	Doctor visits, dentist services, physiotherapy (if by regulated practitioners)
	Educational Services	School tuition, university courses, professional certification training
	Child Care Services	Daycare and preschool programs
	Financial Services	Loans, bank fees, insurance premiums
	Legal Aid Services	Legal representation under government aid programs

Calculate Your Newfoundland and Labrador Sales Tax

The Newfoundland tax rate is 15% and its system is pretty straightforward because the province uses HST. However, this section will introduce you to Newfoundland tax calculator and teach you how to calculate taxes manually.

Step-by-Step Calculation for Newfoundland and Labrador HST

For example you’re selling a washer and dryer set for $1,200. You need to calculate the 15% Newfoundland tax and determine the total amount the customer will pay. Here’s how to calculate Newfoundland and Labrador sales tax.

Step 1: Know the NL HST rate

Newfoundland HST rate = 15%

As a decimal: 0.15

Step 2: Use the Formula to Calculate Newfoundland Tax (HST)

Sale Price: $1,200

Newfoundland HST Amount = Sale Price x Newfoundland HST Rate

Newfoundland HST Amount = $1,200 x times 0.15

Newfoundland HST Amount = $180.00

Step 3: Add Newfoundland HST Amount to the Sale Price

Total Price = Sale Price + Newfoundland HST Amount

Total Price = $1,200 + $180

Total Price = $1,380.00

If, for instance, you receive a total invoice of $1,380.00 for a washer and dryer set purchase in Newfoundland and Labrador, and you want to find out the pre-tax price and the NL HST. Use the formula below.

Step 1: Know the Newfoundland tax rate (HST)

Newfoundland HST = 15%

Newfoundland HST (total multiplier) = 1.15

Step 2: Use the formula to find the pre-tax price

Pre-Tax Price = Total Price/Newfoundland HST (total multiplier)

Pre-Tax Price = $1380.00/1.15

Pre-Tax Price = $1,200.00

Step 3: Subtract to find the HST amount

Newfoundland HST Amount = Total Price - Pre-Tax Price

Newfoundland HST Amount = $1,380.00 - $1,200.00

Newfoundland HST Amount = $180.00

Using Online Newfoundland Sales Tax Calculators & Tools

If you don’t want to do the manual calculations, you can use Newfound tax calculators. Canada’s official website offers GST/HST calculators to do the job for you.

The Newfoundland sales tax calculator will give you the HST and total after taxes amount. Just input Newfoundland and Labrador for the “Province or territory” and the “Amount before taxes.”

If you want to find the amount before taxes, use the reverse NL sales tax calculator. Just enter Newfoundland and Labrador for the “Province or territory” and the “Total after taxes” or total price.

If you want an even easier solution, you can use sales tax automation tools like Kintsugi that comes with its own NL tax calculator. Kintsugi is designed to calculate sales tax accurately and automate filing taxes in Newfoundland.

Compliance Essentials for Newfoundland and Labrador Businesses

Navigating sales tax compliance is a vital part of running a business in Newfoundland and Labrador. This section covers the essential steps to help you register, collect, report, and remit HST in Newfoundland.

Newfoundland Tax Registration, Collection, & Remittance

1. Registration

Who Needs to Register:

• Businesses must register for a Newfoundland HST account with the Canada Revenue Agency (CRA) if they earn $30,000 or more in taxable sales over the last four consecutive calendar quarters.
• Voluntary registration is allowed below that threshold, which enables businesses to charge NL tax or NL HST and claim input tax credits (ITCs) on business expenses.

How to Register:

• Online: Through the CRA’s Business Registration Online portal
• By Phone: Call CRA at 1-800-959-5525
• By Mail or Fax: Complete and submit Form RC1 – Request for a Business Number

What You Receive:

• A Business Number (BN) with an associated Newfoundland HST account (format: 123456789 RT 0001)

2. Collection

Once registered, you must charge 15% Newfoundland tax or HST on all taxable goods and services sold or provided in Newfoundland and Labrador

Invoice Requirements:

Each invoice must clearly include:

• Sale subtotal
• NL HST amount (15%)
• Total price
• Your Newfoundland HST account number

Maintain detailed records of all sales, invoices, NL HST collected, and any tax-exempt or zero-rated transactions.

3. Remittance & Filing

File your remittance online through CRA's My Business Account, by mail, tax professional or sales tax automation tool like Kintsugi. The filing frequency is assigned by CRA and could be any of the following:

• Monthly: If taxable sales exceed $6 million annually
• Quarterly: If between $1.5 million and $6 million
• Annually: If under $1.5 million

During your filing, make sure to include the following:

• Total sales and revenue
• Newfoundland HST collected (output tax)
• Input Tax Credits (ITCs) claimed
• Net tax owing (Newfoundland HST collected – ITCs)

Remittance:

• Pay the amount owed to the CRA by the filing deadline (based on your frequency) to avoid interest and penalties.

Quick Tips for Newfoundland and Labrador tax compliance

Here are practical tips to make the whole process convenient and stress-free.

1. Keep records for at least 6 years.
2. Reconcile your Newfoundland HST filings regularly.
3. Stay informed on Newfoundland HST exemptions, rebates, and rate changes.
4. Use automation tools like Kintsugi to simplify tracking, filing, and remittance.

Newfoundland Tax FAQs

How much is HST in Newfoundland?

The HST rate in Newfoundland and Labrador is 15%.

What is the sales tax in Newfoundland and Labrador?

Newfoundland and Labrador uses a 15% Harmonized Sales Tax (HST) on most goods and services.

What is the tax rate in Newfoundland?

The general sales tax rate is 15% HST, which combines 5% federal and 10% Newfoundland and Labrador retail sales tax or provincial tax.

Is Newfoundland the only province with sugar tax?

Yes, Newfoundland and Labrador is currently the only province in Canada with a sugar-sweetened beverage tax.

How much is the sugar tax in NL?

The sugar sweetened beverage tax in Newfoundland and Labrador is 20 cents per liter.

Newfoundland Sales Tax Key Points

• Newfoundland and Labrador uses a Harmonized Sales Tax (HST) system, combining 5% federal GST and 10% provincial portion into a single 15% HS.
• Businesses must register with the Canada Revenue Agency (CRA) to collect and remit Newfoundland HST if their taxable revenues exceed $30,000 annually.
• Newfoundland tax (NL HST) applies to retail goods, digital products, prepared foods, accommodations, and most services.
• Businesses file and remit Newfoundland HST through the CRA and can claim Input Tax Credits (ITCs) on business expenses.

Next Steps & Essential Resources for Newfoundland Tax

Learn more about NL tax by visiting the following websites and resources.

• Canada Revenue Agency (CRA)
• CRA Account
• Newfoundland and Labrador Finance Department
• Newfoundland & Labrador Harmonized Sales Tax

You do not need to go through all the hassles and confusion for Newfoundland and Labrador tax compliance. Let Kintsugi handle it because it’s what we do best, so you can focus on your business growth.

Book a demo or sign up today to experience the power of Kintsugi.