Effective October 1, 2016, the Province of Prince Edward Island will increase the provincial component of the harmonized sales tax (HST). The new HST rate will consist of the provincial component of 10 per cent and the federal component of five (5) per cent for a combined rate of 15 per cent. On April 19, 2016, the Minister of Finance for Prince Edward Island tabled the Provincial Budget 2016 and among other proposed measures, the Budget announced an increase to the provincial part of the HST by 1%.
Effective October 1, 2016, the HST rate in Prince Edward Island will be 15% from 14%, of which 5% would represent the federal part and 10% the provincial part.
The Canada Revenue Agency (CRA) collects HST, processes applications, and makes rulings and interpretations on the application of HST policy. All individuals and businesses must deal directly with the CRA for any of these or other administrative issues. Transitional rules were announced on June 16, 2016 and are available here.
You may also refer to Canada Revenue Agency website for assistance with the application of HST in PEI.
For more information please contact the Canada Revenue Agency.