Newfoundland and Labrador Sales Tax (HST) Guide (2026)
Newfoundland and Labrador applies the 15% HST (5% federal, 10% provincial) as one combined tax. Registration is required once sales reach CAD $30,000.
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Key Takeaways
Newfoundland and Labrador uses the Harmonized Sales Tax (HST), combining the 5% federal GST with a 10% provincial portion for a single 15% rate. Register for GST/HST once taxable revenue exceeds CAD $30,000 over four consecutive calendar quarters. Basic groceries, prescription drugs, and many medical devices are zero-rated, and certain health and education services are exempt; SaaS and digital products are taxable under HST.
Taxability Snapshot
SaaS
Taxable
Digital Goods
Taxable
Groceries
Zero-rated
Sales Tax Rates
Newfoundland and Labrador uses the Harmonized Sales Tax (HST), a single 15% tax combining the 5% federal GST with a 10% provincial portion. The CRA administers it, so businesses file one return.
Component | Rate | Scope |
|---|---|---|
Federal GST | 5% | Canada-wide |
Provincial portion | 10% | Newfoundland and Labrador |
Combined HST | 15% | Newfoundland and Labrador |
Registration & nexus threshold
Canada uses a registration threshold rather than US-style economic nexus. You must register for GST/HST once taxable revenue exceeds CAD $30,000 over four consecutive calendar quarters [2]. Non-resident businesses selling digital products or services to Newfoundland and Labrador customers register under the simplified GST/HST regime at the same CAD $30,000 threshold [3]. Registration steps are in the How to Register section.
Filing frequency & deadlines
The CRA assigns monthly, quarterly, or annual HST filing based on revenue. Monthly and quarterly returns are due one month after the reporting period; annual filers generally have three months.
Exemptions
Basic groceries, prescription drugs, and many medical devices are zero-rated, and certain health and education services are exempt. SaaS and digital products are subject to HST in Newfoundland and Labrador.
Resale & Exemption Certificates
Canada does not use US-style resale certificates. A GST/HST registrant recovers the tax paid on goods bought for resale and other business inputs by claiming input tax credits on its return [5]. Newfoundland and Labrador's only provincial point-of-sale rebate is on qualifying printed books, so the full 15% HST applies to other taxable goods including clothing [1][7].
Penalties
Filing late carries the CRA penalty of 1% of the amount owing plus 25% of that 1% for each full month the return is late, up to 12 months, plus interest.
Audits & Appeals
The CRA audits GST/HST in Newfoundland and Labrador. To dispute an assessment, file a Notice of Objection (Form GST159) within 90 days of the assessment date; if still unsatisfied, appeal to the Tax Court of Canada [6].
Sources
[1] Canada Revenue Agency — GST/HST rates (Newfoundland and Labrador 15%)
[2] Canada Revenue Agency — When to register for and charge GST/HST ($30,000 threshold)
[3] Canada Revenue Agency — GST/HST for digital economy businesses
[4] Canada Revenue Agency — GST/HST filing and remitting deadlines
[5] Canada Revenue Agency — Type of supply (zero-rated groceries, input tax credits)
Verified July 2026 against Canada Revenue Agency guidance.
Frequently asked questions
Newfoundland and Labrador charges 15% HST — the 5% federal GST plus a 10% provincial portion.
Once your taxable revenue exceeds CAD $30,000 over four consecutive calendar quarters. Non-resident digital sellers use the simplified regime at the same threshold.
Yes. SaaS and digital products are subject to the province's 15% HST.
No. Basic groceries and prescription drugs are zero-rated, meaning they are taxed at 0%.
Monthly and quarterly returns are due one month after the period; annual filers generally have three months.
1% of the amount owing plus 25% of that for each full month late, up to 12 months, plus interest.
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