Month-end close: HST in Prince Edward Island

Prince Edward Island's HST is 15%, filed on the federal GST/HST return.

This is part of the sales tax checklist. Prince Edward Island charges HST, one combined tax, and the CRA collects it on the GST/HST return, with the same reporting periods and due dates as the rest of Canada outside Quebec [2].

Rate. 15% HST: 5% federal and 10% provincial.

Filing. The same as the rest of Canada outside Quebec, set by the client's annual taxable supplies: $1,500,000 or less is annual, or monthly or quarterly by election. Over $1,500,000 up to $6,000,000 is quarterly, and over that, monthly. Use the period in the client's CRA account.

Due. One month after the end of a monthly or quarterly period, and usually three months after the fiscal year end for an annual one.

The trap. On a sale in Prince Edward Island the tax code is 15%, not Ontario's 13% or Nova Scotia's 14%.

The month-end steps

The month-end steps, the return lines and the input tax credit checks are the same as in the rest of Canada outside Quebec. Follow the Canada GST/HST steps and use 15% as the rate on Prince Edward Island sales [1].