Retail Sales Tax - Introduction
This section provides general information on Retail Sales Tax including legislative authority, applicability, rate and payment requirements.
What is Retail Sales Tax (RST)?
Effective April 1, 2013 Prince Edward Island harmonized its sales tax with the federal good and services tax. As part of the implementation of the harmonized sales tax (HST) the Province enacted the Retail Sales Tax Act which, in part, provides for a tax to be levied on the private transfer of designated property.
What is Designated Property?
Designated property means vehicles, boats, and aircraft.
For greater clarity, a vehicle includes a motor vehicle, snow vehicle and all terrain vehicle as defined in the Highway Traffic Act (617 Kb) or the Off-Highway Vehicle Act. The following definitions apply to designated property that is a vehicle:
- Motor Vehicle means a highway vehicle that is powered, drawn, propelled or driven by any means other than muscular power, but does not include a moped.
- Snow Vehicle means a motor vehicle designed or intended to be driven exclusively or chiefly upon snow or ice or both, and includes motor vehicles known to the trade as snowmobiles.
- All Terrain Vehicle means a wheeled or tracked motor vehicle designed for travel primarily on unprepared surfaces such as open country and marshland, but does not include a snow vehicle, agricultural equipment or construction machinery.
What is a private transfer?
A private transfer is the transfer of title or possession of designated property when the transfer is not a taxable supply made by a GST/HST registrant pursuant to PART IX of the Excise Tax Act (Canada).
For greater clarity, if the seller is not a GST/HST registrant, generally Retail Sales Tax will be payable by the purchaser or recipient of the designated property unless the transfer is specifically exempt from the Retail Sales Tax under the Retail Sales Tax Act or Retail Sales Tax Act Regulations.
How do I know if the transfer of designated property will be exempt from Retail Sales Tax?
Information on exemptions can be found in the Retail Sales Tax Exemptions section.
What is the rate of Retail Sales Tax?
The Retail Sales Tax Act provides for a Retail Sales Tax (RST) at a rate of 15% (14% prior to October 1, 2016) charged on the private transfer of designated property.
When is Retail Sales Tax due?
Retail Sales Tax on designated property, other than a vehicle, is due on or before the day that is 20 days after the end of the month in which the designated property, other than a vehicle, was purchased in PEI or brought into PEI.
Retail Sales Tax on designated property that is a vehicle is due on the earlier of:
- The day the vehicle is registered or licensed under the Highway Traffic Act (617 Kb) or Off-Highway Vehicle Act, and
- On or before the day that is 20 days after the end of the month in which the vehicle was purchased in PEI or brought into PEI.
Where do I pay Retail Sales Tax?
Retail Sales Tax on the private transfer of a vehicle registered or licensed under the Highway Traffic Act (617 Kb) or Off-Highway Vehicle Act is paid at the time of registration or licensing.
The purchaser of other designated property in a private transfer is required to pay the applicable tax directly to the Department of Finance. A copy of the Bill of Sale must accompany the payment.
Payments may be made in person at any Access PEI Centre or by mail to:
Taxation and Property Records
Department of Finance
P.O. Box 1330
Charlottetown, PE
C1A 7N1
Purchasers of designated property can use the form Retail Sales Tax (RST) Self-declaration to declare the Retail Sales Tax due on their purchases.
How are taxpayers informed of changes to the Retail Sales Tax Act or the administration of the Act?
From time to time Retail Sales Tax Notices are released to communicate or clarify important information related to the Retail Sales Tax Act or Retail Sales Tax Act Regulations.