The province of Prince Edward Island (“PEI”) has issued two new Revenue Tax Guides regarding the implementation of HST. The first guide, RTG 197, “Point-of-Sale Rebates for Prince Edward Island HST” confirms that the province will be allowing a point-of-sale rebate on the provincial component of the HST (i.e. 9%) on specific items classified as “qualifying goods”. Qualifying goods include the following:
- heating oil;
- children’s clothing;
- children’s footwear; and
- books.
The guide provides further details on what items are included as qualifying goods in each category.
The second guide recently published, RTG 198, “Application of the Prince Edward Island Retail Sales Tax to the Purchase of Designated Property” alerts the residents of PEI that the newly enacted Retail Sales Tax Act provides for a tax to be charged on the private transfers of designated property. “Designated property” includes vehicles, boats, and aircraft. A few exemptions have been allowed including settler’s effects, family transfers, First Nations exemption, marriage breakdown, inheritance and boats used by commercial fishers. A refund of the retail sales tax paid is also available in cases where the property is permanently removed from the province within 30 days of the purchase, and there is proof of tax paid in another province or territory.