As of April 1, 2013, HST will apply to most goods and services that are currently subject to the goods and services tax (GST) in Prince Edward Island.
Rules have been developed to allow for a smooth transition to the harmonized sales tax (HST) system, according to the P.E.I. government. General transitional rules for the implementation of HST have been developed with the intention of avoiding double taxation and non-taxation for consumers and businesses in P.E.I.
The new proposed rules explain the procedures for situations for the following:
• whether the GST and the provincial sales tax (PST), or the HST, is to be applied for transactions beginning before April 1, 2013, and are completed after that date
• what businesses need to do to conclude the PST system
• special transitional rules specific to an industry or business.
To ensure HST is applied in the fairest manner possible for businesses and consumers, the same approach will be used as other provinces that have implemented HST. For the most part, this means HST will apply to prepayments made on or after Feb. 1, 2013, for goods or services that will be provided on or after April 1, 2013. Certain businesses and public service bodies may be required to self-assess the P.E.I. component of HST on amounts paid or payable after Nov. 12, 2012 and before Feb. 1, 2013, for goods or services provided on or after April 1, 2013.
© Copyright Canadian HR Reporter, Thomson Reuters Canada Limited. All rights reserved.