News and Insights

PEI Releases Several Revenue Tax Guides Regarding The Transition To HST

Tax Development Feb 28, 2013

With the upcoming implementation of the HST in Prince Edward Island (PEI), effective April 1, 2013, the government of PEI has released a number of Revenue Tax Guides (RTGs) related to the transition.

RTG 189, “Transitional PST Inventory Rebate” discusses whether contractors that repair and/or improve residential complexes are eligible for the rebate on construction materials held in inventory.  Construction materials in inventory before April 1, 2013 and materials used in repairs/improvements to residential complexes between April 1 and October 1, 2013 (provided the HST was collected on the contract) will be eligible for this rebate.

RTG 190, “Prepare for the HST: Returned or Exchanged Goods” provides guidelines to vendors on PST relating to goods purchased prior to the implementation of HST and returned or exchanged after.

For goods bought before April 1, 2013 that were subject to PST, and returned or exchanged after March 31, 2013 but before August 1, 2013: 

  • Returned goods – full refund given: PST will be refunded
  • Partially returned goods – some refund given: fractional PST will be refunded
  • Exchanged goods – no refund or additional payment: no PST would be refunded and no HST charged
  • Exchanged goods – additional payment: HST would apply to the additional payment in excess of the original price

RTG 192, “Prepare for the HST: Accounting and System Changes” is a reminder for businesses as they make changes to their accounting and point-of-sale systems in anticipation of the HST implementation.

RTG 193, “Prepare for the HST: Important Dates to Remember” lists key dates to be cognizant of with regards to the transition to HST.

  • November 8, 2012 is the announcement date when the general transitional rules were released;
  • February 1, 2013 is the pre-implementation date, where HST at 14% will apply to consideration that become due or is paid without having become due on or after this date, where property or services are provided in PEI on or after April 1, 2013;
  • March 31, 2013 - Final PST vendor returns would generally be required to be filed on or before April 20, 2013, for the March 2013 period, which ends on this date for all PST vendors;
  • April 1, 2013 is the implementation date of the HST; and
  • August 20, 2013 is the due date for all supplemental PST liabilities that are collected or become payable after March 31, 2013.

RTG 194, “Winding Down the Prince Edward Island Revenue Tax” offers information on the application of PST during the transition period.

RTG 195, “Interjurisdicational Motor Carriers GST/PST to HST Transition Information”, deals with the prorate tax during the transitional period for vehicles licensed under the International Registration Plan (IRP).