Credit card processing and merchant services in Newfoundland and Labrador
In Newfoundland and Labrador, books get an HST break at the till and credit card surcharges are legal within the network caps, so your till needs settings for both.
Card surcharges
Allowed with limitsNo provincial ban. Visa and Mastercard credit surcharges are capped at 2.4% or your cost, need 30 days' notice, and can't touch debit.
Sales tax
15% HST
Last checked
October 6, 2026
Card payments in Newfoundland and Labrador run on the national rules, with two provincial details to set up properly: a 15% HST and a point-of-sale rebate on books. By ISED's count, the province had 12,824 employer businesses at the end of 2024, 12,626 of them small, and the fewest per adult of any province: 27.9 for every 1,000 people aged 18 and over, against 32.7 nationally.
HST in the province is 15%, made up of the 5% federal GST and a 10% provincial portion. CRA's rate table shows it at 15% since July 1, 2016, up from 13%. The province reinstated its point-of-sale rebate on qualifying books as of January 1, 2018, so suppliers can pay or credit the provincial component of the HST on those books at the till. If you sell books alongside other goods, give them their own tax code.
Card surcharges are allowed. We found no provincial ban, and the FCAC lists Quebec as the only province where surcharging isn't an option. That leaves Visa and Mastercard's limits: credit cards only, no more than 2.4% or your cost of acceptance, 30 days' notice to your acquirer (and to Mastercard, for Mastercard), and the fee disclosed at the entrance, at the till and on the receipt. CRA generally treats a surcharge shown on its own line as an exempt financial service, so no HST is charged on it.
Interac debit can't carry a fee you add yourself. Interac's rules only allow a surcharge fee of up to $0.25, applied by the acquirer.
Whether you're on the island or in Labrador, we can set you up remotely, with interchange-plus pricing and a dedicated rep. A free statement review is the easiest place to start.
What Newfoundland and Labrador merchants should know
Newfoundland and Labrador's 15% HST and book rebate
Newfoundland and Labrador's HST is 15%, a combination of the 5% federal GST and a 10% provincial portion. CRA's rate table shows the 15% rate in effect since July 1, 2016; it was 13% before that.
The provincial HST rebate on qualifying books was reinstated as of January 1, 2018. Suppliers can pay or credit the rebate, equal to the provincial component of the HST, at the point of sale. The province's list of qualifying books starts with most printed books and updates.
Sources: Government of Newfoundland and Labrador, Department of Finance, Harmonized Sales Tax; Canada Revenue Agency, Charge and collect the GST/HST: which rate to charge; Canada Revenue Agency, GST/HST Info Sheet GI-191: New Brunswick and Newfoundland and Labrador HST rate increases; Government of Newfoundland and Labrador, Provincial Portion of HST Book Rebate Reinstated; Government of Newfoundland and Labrador, Reinstatement of the General HST Point-of-Sale Book Rebate
Credit card surcharges in Newfoundland and Labrador
We found no provincial law banning surcharges in Newfoundland and Labrador, and the FCAC names Quebec as the only exception. Visa and Mastercard's rules apply: credit cards only, never their debit or prepaid cards; no more than 2.4% or your cost of acceptance, whichever is lower; and 30 days' notice, in writing to your acquirer for Visa and to both Mastercard and your acquirer for Mastercard.
Disclose the surcharge at the store entrance and the point of sale, show the amount on the receipt, and let customers cancel without penalty once they see it.
Sources: Visa Canada, Surcharging FAQ for businesses (PDF); Mastercard Canada, What merchant surcharge rules mean to you in Canada; Financial Consumer Agency of Canada, Merchant surcharges, service and convenience fees, and discounts
HST on a credit card surcharge
CRA's info sheet GI-200 says a credit card surcharge shown and charged separately from the purchase and from any other fees is generally consideration for a separate financial service. No GST or HST is payable on a financial service, so the surcharge itself generally carries no 15%.
Interac debit fees in Newfoundland and Labrador
Interac's fee page says merchants may not apply a surcharge to Interac Debit directly, and it caps any surcharge fee at $0.25. Ask your acquirer before you set one up.
Source: Interac, Understanding fees
Cities we cover in Newfoundland and Labrador
Payment services we provide
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Common questions
What is the HST rate in Newfoundland and Labrador?
15%, made up of the 5% federal GST and a 10% provincial portion. CRA's rate table shows the 15% rate in effect since July 1, 2016; it was 13% before that. Qualifying books get a point-of-sale rebate of the provincial component, so they carry only the 5% GST at the till.
Do books still get the point-of-sale HST rebate?
Yes. The provincial government reinstated the HST rebate on qualifying books as of January 1, 2018. Suppliers can pay or credit the rebate, equal to the provincial component of the HST, at the point of sale. The province's list of qualifying books includes most printed books and updates, so check its page before you set up tax codes.
Is there a provincial ban on credit card surcharges in Newfoundland and Labrador?
We found none, and the FCAC names Quebec as the only province where merchants can't surcharge. The Visa and Mastercard rules still apply: credit cards only, up to 2.4% or your cost of acceptance, whichever is lower, 30 days' notice, and disclosure at the entrance, the till and on the receipt. Laws change, so check the FCAC page before you start.
Can I charge a fee for Interac debit in Newfoundland and Labrador?
Not on your own. Interac's fee page says merchants may not directly apply a surcharge to Interac Debit, and any surcharge fee is capped at $0.25 and applied by the acquirer. Visa and Mastercard debit and prepaid cards can't be surcharged at all.
Does Clearo work with businesses in Labrador as well as on the island?
Yes. We work with merchants anywhere in the province, remotely, so where you are doesn't change your setup, your pricing or your access to a dedicated rep. Every account gets interchange-plus pricing, no long-term contract and no cancellation fees. Contact us to get started.
Other provinces and territories we serve besides Newfoundland and Labrador
Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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