The Newfoundland and Labrador Regulation 19/25, an amendment under the Revenue Administration Act, introduces several revisions to existing revenue administration regulations. These amendments affect various aspects of tax administration, including interpretation, vehicle tax refunds, tax exemptions on gasoline, sugar-sweetened beverage tax exemptions, and valuation of vehicles.

It introduces a new definition, “Table of Permitted Nutrient Content Statements and Claims,” which refers to a document published by the Government of Canada. This document, subject to periodic updates, provides standardized statements and claims related to nutrient content, which will now be incorporated into provincial tax administration.

The revised regulation states that when a vehicle sold to a retail purchaser is repossessed within six months of the sale, the tax collected at the time of purchase may be refunded. This refund is contingent upon the minister receiving satisfactory evidence of the repossession. This provision aims to offer financial relief to purchasers who lose possession of their vehicle shortly after purchase.

The previous regulation allowed tax exemptions for certain uses of gasoline, but the amendment introduces a new restriction. Specifically, gasoline used in equipment on a vessel or boat transporting fish or fishery salt will no longer qualify for an exemption or a rebate. This revision clarifies and limits the scope of tax-exempt gasoline usage within the fishing industry.

The regulation now specifies that sugar-sweetened beverages containing 1.1% or more alcohol by volume are exempt from this tax. Additionally, the revised regulation expands the list of exempted beverages to include kefir, as well as sugar-sweetened beverages that meet the conditions outlined in the Table of Permitted Nutrient Content Statements and Claims under the category “free of sugars.” This update reflects a refined approach to taxation of beverages, ensuring that certain low-sugar and fermented drinks are not subject to the sugar-sweetened beverage tax.

Lastly, the amendment modifies the valuation process for vehicles. Under the new provision, the purchase price of a vehicle shall be considered the actual price paid if it is lower than the predetermined value referenced in the regulations. For this valuation to be accepted, both the consumer and seller must confirm the actual price in the required format prescribed by the minister. This change addresses discrepancies between market value assessments and actual transaction prices, ensuring that consumers pay tax based on the price they actually paid rather than an estimated value.

These amendments reflect the government’s efforts to refine the Revenue Administration Regulations by introducing clarifications, exemptions, and refund mechanisms that impact consumers, businesses, and tax administration processes. The changes aim to provide clearer guidelines on tax application, prevent potential loopholes, and ensure fairness in the taxation system.

Newfoundland & Labrador (19/25) February 14, 2025