Information on new HST transitional rules available online

Information to help businesses withchangesto the new harmonized sales tax are now available on the provincial government'swebsite.

HST ratechanges will take place on October 1 when thecombined federal and provincial HST rate will be 15 per cent.

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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 toGeneral Transitional Rules for Prince Edward Island HST Rate Increaseto help determine theappropriate rate to charge on transactions.

Provincial officials said announcing thetransitional rules early will help reduce uncertainty for businesses and consumers. It also allows Islandbusinesses more lead time to implement the system changes needed to enact the rules.

The P.E.I. government said theone 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 inhealth and wellness,education and other areas.

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