Information is available online to help businesses prepare for the change in the provincial Harmonized Sales Tax (HST) rate for Oct. 1, 2016.
The combined federal and provincial HST rate will be 15 per cent.
Transitional rules are required to determine which tax rate will apply to transactions that straddle the October 1 implementation date. Business owners and consumers alike should refer to “General Transitional Rules for Prince Edward Island HST Rate Increase” (https://www.princeedwardisland.ca/en/publication/general-transitional-rules-prince-edward-island-hst-rate-increase) when determining the appropriate rate to charge on transactions.
More information on the HST is available at: https://www.princeedwardisland.ca/en/information/finance/harmonized-sales-tax-hst.
Announcing these transitional rules early helps reduce uncertainty for businesses and consumers, allowing businesses more lead time to implement the system changes needed to enact the rules.
The one-percentage-point HST increase will add $11 million in revenue in 2016-17 and another $22 million in 2017-18 that will go directly to core investments including health and wellness, education, supporting our most vulnerable populations, and helping grow employment and our economy.