Tax Information Bulletins are published by the Provincial Tax Commission for the sole purpose of providing the Commission's interpretation of legislation it administers. For legislative approved text of provisions of the Revenue Act and Regulations, see official volumes.

On April 1, 1997 Nova Scotia will be harmonizing its Health Services Tax with the Goods and Services Tax. The tax will be known as the Harmonized Sales Tax (HST). The rate of tax will be 15% consisting of a 7% federal component and an 8% provincial component. Vendors presently registered for Health Services Tax purposes will no longer be required to collect or remit this tax. 

Nova Scotia, after April 1, 1997, under the authority of the Sales Tax Act, will be applying a Transitional Tax to the sale of motor vehicles and mobile heavy equipment. For the purposes of this notice motor vehicles includes: passenger vehicles, light and heavy duty trucks, and mobile heavy equipment. 

1. The Transitional Tax rate is set at 2% for the period April 1, 1997 to March 31, 1998 and at a rate of 1% for the period after April 1, 1998 to March 31, 1999 after which time the rate will drop to 0%. 
    
2. Vendors who sell motor vehicles and mobile heavy equipment will continue to be registered to collect and remit the transitional tax. Affected vendors will continue to be registered to collect and remit the Transitional Tax. 
    
3. Vendors who sell highway powered vehicles to be used for interprovincial travel are required to collect the 2% Transitional Tax and the 15% Harmonized Tax at the time of sale. 

Vendors presently registered with Revenue Canada for GST purposes will not be required to register for HST purposes, they will be automatically registered. Vendors who are not registered for GST purposes and wish to do so should contact Revenue Canada GST at the numbers listed below. 

The Provincial Tax Commission will continue to function after harmonization since other taxes are administered by the Commission as well as winding down of the Health Services Tax system including Audit and Collection. 

For audit purposes it will be necessary to maintain records pertaining to Health Services Tax for a period of not less than seventy two months after the end of the year to which they relate, or for such other period as required by the Commissioner. 

Should you wish to register for HST purposes, registration can be completed by telephone, or if you require information on the application of the tax contact: 

Revenue Canada/Business Window 
902-426-5300 (Metro Area)
1-800-959-5525 (toll free) 

Service Nova Scotia & Municipal Relations
Program Management and Corporate Services Division
1505 Barrington Street, 8th floor
Halifax , Nova Scotia
PO Box 755
Halifax, NS
B3J 2V4
Telephone: (902) 424- 6300 (Metro area); or
1-800-565-2336 (toll free in Nova Scotia)

Web site address: http://www.gov.ns.ca/snsmr/taxcomm/

"Tax Information Bulletins are published by the Program Management and Corporate Services Division for the sole purpose of providing information and to announce changes in the Revenue Act or Sales Tax Act and the regulations. Tax Information Bulletins do not replace the law found in the Act or regulations. Bulletins are provided for reference purposes only. For legislative approved text of provisions of the Revenue Act or Sales Tax Act and Regulations, see official volumes."