Harmonized sales tax in Prince Edward Island

The Government of Canada and the Government of Prince Edward Island have signed an agreement to implement a harmonized sales tax (HST) in Prince Edward Island (P.E.I). The HST will come into effect on April 1, 2013. The combined HST rate in P.E.I. will be 14%, of which 5% is the federal portion and 9% is the provincial portion. The HST will use the same tax base and structure as the goods and services tax (GST), with some exceptions.

What this means for you:

  • All GST/HST registrants across Canada should update their accounting and point-of-sale systems by April 1, 2013, to accommodate the change in rate for their taxable supplies of property and services that are made in P.E.I.
  • Some GST/HST registrants across Canada may need to update their point-of-sale systems by April 1, 2013, to accommodate the new point-of-sale rebates in P.E.I.
  • Current GST registrants located in P.E.I. will automatically become HST registrants and report their HST according to their current GST filing frequency.
  • As a result of the implementation of the HST in P.E.I., there will be changes to the rebates for housing, and public service bodies such as charities, public institutions and qualifying non-profit organizations.

Where to get more information:

The CRA will keep you informed as more information becomes available. For the most up-to-date information, go to www.cra.gc.ca/harmonization or subscribe to Excise and GST/HST News at www.cra.gc.ca/lists and receive quarterly electronic newsletters.

The CRA’s online services for businesses:

Did you know that you can simplify your GST/HST filing obligations by using the CRA’s online filing options? For more information, go to www.cra.gc.ca/gsthst-filing.To learn more about the online services offered through the CRA’s My Business Account, go to www.cra.gc.ca/mybusinessaccount.

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