Harmonized Sales Tax (HST)

As of April 1, 2013, the harmonized sales tax (HST) replaced the previous combination of the provincial sales tax (PST) and the goods and services tax (GST) in Prince Edward Island. The HST is administered by the Canada Revenue Agency (CRA).  

This section provides links to key information on the implementation of HST for Prince Edward Island.

What is Harmonized Sales Tax (HST) and how does it apply to Prince Edward Island?

The Harmonized Sale Tax (HST) replaced the previous combination of the provincial sales tax (PST) and the goods and services tax (GST) in Prince Edward Island. HST is a tax administered by the federal government through the Canada Revenue Agency. 

If you have specific questions on how the HST applies to you or your business or whether a good or service is taxable under the HST, you can contact the Canada Revenue Agency at 1-800-959-5525 for assistance.

What is the HST rate for Prince Edward Island?

Effective October 1, 2016, the Province of Prince Edward Island increased the provincial component of the harmonized sales tax (HST). The HST rate consists of the provincial component of 10 per cent and the federal component of 5 per cent for a combined rate of 15 per cent. 

See General Transitional Rules for the change from 14 per cent to 15 per cent. 

Refer to Canada Revenue Agency for assistance with the application of HST in PEI.

On February 24, 2022, the Government of Prince Edward Island announced its intention to increase the provincial Harmonized Sales Tax (HST) rebate for charities and qualifying non-profit organizations (QNPOs) to 50 per cent starting on January 1, 2023. This notice provides general descriptions of transitional rules in respect of this change that will be proposed to be enacted in regulations under the federal Excise Tax Act (ETA). Transitional rules are required to determine which rebate rate – the existing 35 per cent or the new 50 per cent – will apply in respect of transactions that straddle January 1, 2023.

See Transitional Rules for PEI Charity Rebate for more details on the change.

What Canada Revenue Agency publications would help me understand the implementation of HST for Prince Edward Island?

• GI-144 Harmonized Sales Tax: Purchasers of New Housing in Prince Edward Island
• GI-145 Harmonized Sales Tax: Information on Owner-built Homes, Mobile Homes and Floating Homes in Prince Edward Island
• GI-146 Harmonized Sales Tax: Information for Builders of New Housing in Prince Edward Island
• GI-147 Harmonized Sales Tax: Stated Price Net of the GST/HST New Housing Rebate in Prince Edward Island
• GI-148 Harmonized Sales Tax: Stated Price Net of GST/HST New Housing Rebate and the P.E.I. PST Transitional New Housing Rebate
• GI-149 Harmonized Sales Tax: Information for Landlords of New Rental Housing in Prince Edward Island
• GI-150 Harmonized Sales Tax: Information on the Transitional Tax Adjustment for Builders of Housing in Prince Edward Island
• GI-151 Harmonized Sales Tax: Provincial Transitional New Housing Rebate for Housing in Prince Edward Island
• GI-152 Harmonized Sales Tax: Assignment of Purchase and Sale Agreements for Grandparented Housing in Prince Edward Island
• GI-153 Harmonized Sales Tax: Builder Disclosure Requirements in Prince Edward Island

What province of Prince Edward Island guides and notices would help me understand the implementation of HST for Prince Edward Island?

• RTG:186 Temporary Recapture of Certain Provincial Input Tax Credits
• RTG:187 Streamlined Accounting Methods
• RTG:188 Supplies of Taxable Property and Services to Prince Edward Island Government Entities
• RTG:191 Public Service Bodies
• RTG:197 Point-of-Sale Rebates for Prince Edward Island HST
• RTG:198 Application of Prince Edward Island Retail Sales Tax to the Purchase of Designated Property 

Are there formal agreements between the Government of Canada and the Province of Prince Edward Island with respect to the implementation of a harmonized sales tax (HST) which combines the federal goods and services tax (GST) and the provincial sales tax (PST)?

Human Resources Agreement (HRA):

A Harmonized Sales Tax Human Resources Agreement (HRA) has been recently signed between the Canada Revenue Agency and the Government of Prince Edward Island.

Comprehensive Integrated Tax Coordination Agreement (CITCA):

A Comprehensive Integrated Tax Coordination Agreement (CITCA) (8 Mb) regarding the implementation of the Harmonized Sales Tax (HST) in Prince Edward Island was signed on November 26, 2012 between the Government of Canada and the Province.

Memorandum of Agreement:

A Memorandum of Agreement (MOA) (3.6 Mb) regarding the implementation of the Harmonized Sales Tax (HST) in Prince Edward Island was signed on May 30, 2012 between the Government of Canada and the Province. The MOA (3.6 Mb) allows for more detailed negotiations to begin on the terms of implementation of the HST in PEI.