Tax & Accounting Blog

Prince Edward Island Proposes to Implement HST in 2013

Indirect Tax, ONESOURCE, Sales and Use Tax, Transaction Tax April 23, 2012

Prince Edward Island has announced that it is currently in formal negotiations with the federal government to implement HST in the Province effective 1 April 2013. The combined HST rate will be 14%, merging a provincial rate of 9% with the federal rate of 5%. Several important changes will come with the implementation of the HST. First, the GST will no longer be included in the base to which the provincial tax is applied to. The HST in Prince Edward Island will also be a Value Added Tax like the GST allowing business to deduct input taxes paid. Many current PST exemptions including those for children’s footwear, clothing and heating oil will be retained under the new regime.

According to the Government of Prince Edward Island businesses currently registered for the GST will automatically be registered for the HST. The same rules for administration of GST will apply to the new HST.

Prince Edward Island has announced that it is currently in formal negotiations with the federal government to implement HST in the Province effective 1 April 2013. The combined HST rate will be 14%, merging a provincial rate of 9% with the federal rate of 5%. Several important changes will come with the implementation of the HST. First, the GST will no longer be included in the base to which the provincial tax is applied to. The tax in Prince Edward Island will also be a Value Added Tax like the GST allowing business to deduct input taxes paid. Many current PST exemptions including those for children’s footwear, clothing and heating oil will be retained under the new regime. According to the Government of Prince Edward Island businesses currently registered for the GST will automatically be registered for the HST. The same rules for administration of GST will apply to the new HST. More information is available on Prince Edward Island’s website at:
http://www.gov.pe.ca/budget/index.php3?number=1042705&lang=E

Tags: