Tax rate by region New Brunswick

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

Tax in New Brunswick: A Guide for SaaS Businesse

New Brunswick utilizes a unified 15% Harmonized Sales Tax (HST) administered entirely by the Canada Revenue Agency (CRA), which blends the federal GST and provincial sales tax into a single rate. For non-resident suppliers of digital products and electronic services, registration under the simplified GST/HST framework becomes mandatory once annual sales to Canadian consumers cross the CAD 30,000 mark. Compliance timelines mirror federal tiers—ranging from monthly to annual depending on revenue—with filings and payments uniformly due within one month of the reporting period’s conclusion.

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New Brunswick

New Brunswick is a Harmonized Sales Tax (HST) province at 15%, administered federally by the Canada Revenue Agency. HST combines the federal GST and the provincial component into a single tax.

Official government link: Canada Revenue Agency

15.00%

E-products and services VAT/Sales tax rate

Tax applicable for

B2B and B2C

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

Once exceeding CAD 30,000 in annual sales 

Online registration possible

Yes

Local representative needed

No

Registration procedure

Register via CRA’s online business registration; non-residents use Simplified GST/HST regime

List of digital and electronic services liable for tax

Digital products and services delivered electronically 

Penalties

Late filing: 1% of amount owing plus 0,25% per month overdue (max 12 months);

failure to register: minimum CAD 250

Registration threshold

CAD 30.000 annual sales

Filing interval

Monthly, quarterly, or annually 

Filing deadline

One month after end of reporting period

E-invoicing requirements

Not mandatory

Record keeping

6 years

How-To Guides: New Brunswick SaaS VAT

Step: 1 Threshold

Effective July 1, 2021, Canada requires the following non-resident vendors to register for and collect the federal GST/HST if their sales exceed CAD 30,000 in a 12-month period

 

The CAD 30,000 threshold exists in law, but many non-resident SaaS and digital providers selling to Canadian consumers (including New Brunswick) must register even if they do not exceed CAD 30,000, due to the digital economy rules effective 1 July 2021. Voluntary registration is permitted below this threshold

Step: 2 Business Registration

Registered through the Canada Revenue Agency (CRA). Non-resident SaaS providers typically use the Simplified GST/HST Registration for Digital Economy Businesses.

Step: 3 TIN/VAT Number

The GST/HST Registration Number (9-digit Business Number followed by RT0001) issued by the CRA.

Step: 1 Standard Rate

In New Bruswick, the sales tax is 15% (consisting of 5% Federal GST and 10% Provincial component).

Step: 2 Rate Formula

To calculate your tax amounts, please use the following formula:

 

Tax Amount = Net Price X 15%

Step: 3 Reverse Charge (B2B)

Does not technically apply to the seller in the simplified regime. Instead, the seller is relieved of the obligation to collect tax if the buyer provides a valid GST/HST registration number

Step: 1 Selling B2C

The seller must collect 15% HST from all non-registered consumers located in New Brunswick. Determination of location is based on the buyer’s billing address or IP address.

Step: 2 Selling B2B

Tax is not charged if the business buyer provides a valid GST/HST number. If the buyer does not provide a number, they are treated as a consumer and tax must be collected.

Step: 3 Invoice Requirements

Invoices must include:
1. Supplier legal name (or trading name)
2. GST/HST registration number
3. Date of invoice
4. Total amount including tax
5. Description of the SaaS/service
6. Tax rate applied (15%).

Step: 1 Filing Interval

Standard filing is Quarterly for most non-resident simplified registrants.

Step: 2 Filing Deadline

The end of the month following the reporting period (e.g., Q1 due April 30th).

Step: 3 Submission

File electronically via the CRA My Business Account or the simplified GST/HST NETFILE portal. Payment is via electronic transfer or SWIFT.

Step: 4 Record Keeping

Tax records should be kept for a minimum of 6 years from the end of the latest year to which the records relate.

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating New Brunswick’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

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