Information on new HST transitional rules available online
Gail Harding | CBC News | Posted: June 16, 2016 8:00 PM | Last Updated: June 16, 2016
New HST rate change goes in effect Oct. 1
Information to help businesses with changes to the new harmonized sales tax are now available on the provincial government's website.
HST rate changes will take place on October 1 when the combined federal and provincial HST rate will be 15 per cent.
There are transitional rules required to determine which tax rate will apply to transactions that straddle the implementation date.
To help figure those out, business owners and consumers can refer to General Transitional Rules for Prince Edward Island HST Rate Increase to help determine the appropriate rate to charge on transactions.
Provincial officials said announcing the transitional rules early will help reduce uncertainty for businesses and consumers. It also allows Island businesses more lead time to implement the system changes needed to enact the rules.
The P.E.I. government said the one per cent increase to HST will add $11 million in revenue to the provincial coffers in the next year and will double the year after.
That additional revenue is expected to be invested in health and wellness, education and other areas.
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