Step 4 of 12
Register for HST (15%)
Prince Edward Island has one combined sales tax, collected for the CRA.
- Time
- 30 minutes
- Cost
- Free
One tax, not two
Prince Edward Island charges 15% HST, which combines the federal and provincial portions into a single tax. It is registered, collected and filed with the CRA. Unlike BC, it has no separate provincial sales tax account to register for.
When you must register
You must register once your taxable sales pass $30,000 over four consecutive calendar quarters.
Why register earlier
We recommend registering from the start. As a registrant you can claim back the HST you pay on inventory and business expenses. You generally must stay registered for at least a year once you opt in.
Filing
You will choose how often to file. Annual filing is common for small businesses, but check which option applies to you. File even if you collected nothing.
Selling outside Prince Edward Island
The rate you charge depends on where the sale is made, which for goods you ship is where the customer receives them, not where you are based. A customer in Ontario pays 13% HST, for example, and some provinces have their own sales taxes. Ask your accountant before you ship outside Prince Edward Island, or begin by selling to Prince Edward Island customers only.