Tax & Accounting Blog

Prince Edward Island Signs HST Agreement

Indirect Tax, ONESOURCE, Transaction Tax June 1, 2012

Prince Edward Island (P.E.I.) and the federal government have signed a memorandum of agreement (MOA) on the province’s plans to implement the harmonized sales tax (HST) next year. The MOA clears the way for the two authorities to begin more detailed negotiations on the implementation of the tax. The 14 per cent HST is scheduled to take effect 1 April 2013 and would replace the current 15.5 per cent combination of the GST and PST.

Once P.E.I. implements the tax, it will join Ontario, New Brunswick, Newfoundland and Labrador, and Nova Scotia in using the HST. British Columbia currently imposes HST, but will be returning to PST on the same day that P.E.I. implements theirs.