Excise and GST/HST News – No. 119

April 2025

Table of Contents

• Nova Scotia harmonized sales tax rate decrease
• The Supply of Prescription Eyeglasses and Contact Lenses
  • Previous Position
  • Revised Position
• Confirming that a person is licensed under the Excise Tax Act
• Mandatory electronic filing
  • Electronic filing options
  • GST/HST access code
• Prescribed rates of interest
• Forms and publications
• Contact us

Nova Scotia harmonized sales tax rate decrease

On October 23, 2024, the Government of Nova Scotia announced its intention to decrease the provincial part of the harmonized sales tax (HST) by one percentage point from 10% to 9%, effective April 1, 2025. This resulted in a decrease in the Nova Scotia HST rate from 15% to 14%. 

On December 20, 2024, the Government of Nova Scotia announced proposed transitional rules for the HST rate decrease. Transitional rules set out which tax rate (the HST rate of 15% or 14%) would apply in respect of transactions that straddle the April 1, 2025, implementation date. In addition, other consequential changes and transitional rules would apply as a result of the HST rate decrease such as those related to taxable benefits, to streamlined accounting remittance rates, to determining the liability for the provincial part of the HST for Nova Scotia for selected listed financial institutions, and to certain pension plan rules. These transitional rules have been enacted in the Regulations Amending Various GST/HST Regulations, No. 14 (Nova Scotia) (SOR/2025‑0077).

The Supply of Prescription Eyeglasses and Contact Lenses

Previous Position

In the article "The supply of prescription eyeglasses and contact lenses – Contact Lens King Inc. v. The King" published in the Excise and GST/HST News No. 113 in March 2023, the Canada Revenue Agency (CRA) indicated that the simplest way for a supplier to demonstrate that a supply of contact lenses or eyeglasses was made to a consumer pursuant to a valid prescription or assessment record would be to retain a copy of those documents. Alternatively, a supplier must obtain and retain the following details in order to demonstrate, sufficiently and credibly, that a valid prescription or assessment record existed at the time the supply was made:

• the issue date and expiration date of the prescription or assessment record;
• the name, licence number and business address of the eye care professional who issued the prescription or assessment record to the consumer; and
• the details of the prescription or assessment record, such as the sphere, cylinder, axis, base curve, or pupillary distance values and any additional lens recommendations provided by the eye care professional and included on the document.

At the time of publication of the article, the CRA requested feedback on these documentary requirements. As a result of the feedback received, the CRA has revised its position on the documentary requirements related to the supplies of prescription eyeglasses and contact lenses.

Revised Position

Based on feedback received, the CRA has concluded that as an alternative to retaining a copy of the valid prescription or assessment record, a supplier must obtain and retain the following details in order to demonstrate, sufficiently and credibly, that a valid prescription or assessment record existed at the time the supply was made:

• the issue date of the prescription or assessment record;
• the name of the eye care professional who issued the prescription or assessment record to the consumer; and
• the details of the prescription or assessment record, such as the sphere, cylinder, axis, base curve, or pupillary distance values and any additional lens recommendations provided by the eye care professional and included on the document.

Confirming that a person is licensed under the Excise Tax Act

The Canada Revenue Agency has introduced the Excise Tax Registry as a tool to confirm if a person is licensed under the Excise Tax Act (ETA) as a manufacturer or as a wholesaler of fuels subject to excise tax.

An excise tax is imposed, levied and collected on certain fuels that are imported or manufactured in Canada. For fuels imported in Canada, the excise tax is payable by the importer at the time of importation. For fuels manufactured in Canada, the excise tax is payable by the manufacturer at the time of delivery of the fuels to a purchaser. The licensing status of a person and the type of licence could impact a person’s liability under the ETA.

For more information on how to use the Excise Tax Registry, go to Confirming an excise account number.

Mandatory electronic filing

For reporting periods that begin after December 31, 2023, all GST/HST registrants, with the exception of charities and selected listed financial institutions, must file their GST/HST returns electronically. If you continue to file a paper return, you will be charged a penalty.

The Canada Revenue Agency is continuing to update various communications with information related to mandatory electronic filing. For example, the GST/HST filing packages have to be ready many months before they are sent out to registrants. Even if you receive a paper filing package, you are still obligated to file electronically.

Electronic filing options

No computer or Internet access is required to use GST/HST TELEFILE, which is a valid electronic filing option. There are many other free and accessible ways for businesses to file their GST/HST return electronically, including GST/HST NETFILE and My Business Account. For more information on electronic filing options, go to File a GST/HST return, rebate or election electronically.

GST/HST access code

A four-digit access code is required to file returns using GST/HST NETFILE, GST/HST TELEFILE, and GST/HST Internet File Transfer. Your access code can be found in your filing package and can be used for all future returns. You can also change your access code to a number of your choice. For more information, go to Get a GST/HST access code. If you have never received an access code or require assistance in changing it, call 1‑800‑959‑5525. If you are calling from outside Canada and the United States, call collect at 613‑940‑8497.

Prescribed rates of interest

The prescribed annual rate of interest in effect from January 1, 2025 to March 31, 2025 on overdue amounts payable to the Minister is 8%. The prescribed annual rate of interest on amounts owed by the Minister (such as, rebates or refunds) is 4% for corporate taxpayers and 6% for non-corporate taxpayers. These rates are applicable to income tax, excise taxes, GST/HST, underused housing tax (UHT), air travellers security charge (ATSC), luxury tax, fuel charge (under the Greenhouse Gas Pollution Pricing Act) and excise duties on wine, spirits, tobacco, cannabis and vaping products.

The prescribed annual rate of interest respecting excise duty on beer products, on overdue amounts payable for the indicated period, is set at 6%. Refund interest rates are not applicable for amounts owed by the Minister (such as, rebates or refunds) for excise duty that is in relation to beer products.

Prescribed interest rates for previous years are available on Canada.ca at Prescribed interest rates.

Forms and publications

All GST/HST, underused housing tax, luxury tax, fuel charge, excise duties, and excise taxes and other levies technical publications can be found on the Technical tax information webpage on Canada.ca. To access all forms and publications, go to Forms and publications - CRA, and for a list of new and revised publications, go to the Canada Revenue Agency publications listed by number webpage. To access guides, returns and elections relating to the GST/HST, go to GST/HST-related forms and publications.

To receive email notification as soon as a document is published on the Canada.ca website, go to Canada Revenue Agency electronic mailing lists and subscribe to the RSS feed for all new Canada Revenue Agency publications and forms, or subscribe to any number of mailing lists for different types of publications.

Contact us

The Excise and GST/HST News is published quarterly and highlights recent developments in the administration of the GST/HST, the QST for SLFIs, the First Nations goods and services tax (FNGST) and the First Nations tax (FNT), the air travellers security charge (ATSC), the underused housing tax, the fuel charge, and the luxury tax as well as excise taxes and duties. If you would like to receive a link to each new edition of the Excise and GST/HST News as it is published, subscribe to the electronic mailing list. This publication is provided for information purposes only and does not replace the law, either enacted or proposed. Please note that any commentary in this newsletter regarding proposed measures should not be taken as a statement by the CRA that such measures will in fact be enacted into law in their current form. Comments or suggestions about the newsletter should be sent to the Editor, Excise and GST/HST News, GST/HST Rulings Directorate, Legislative Policy and Regulatory Affairs Branch, CRA, 5th Floor, Place de Ville, 320 Queen Street, Ottawa K1A 0L5.