CRFA opposes PEI’s move to eliminate business rebate
(Jun. 11/12) CRFA is opposing the provincial government’s decision to retroactively eliminate the vendor commission – an entity which has helped compensate operators for the cost of collecting the provincial sales tax. Retailers (including foodservice operators) have been entitled to rebates of up to $500. With harmonization in April 2013, the provincial government will rely on federal officials to collect the HST, thereby eliminating the need for a rebate.
The problem
In May, retailers were notified that effective April 2012 the commission would be eliminated. However, operators will still incur the costs of collecting the PST until April 2013. Changing the vendor commission a year before harmonization will penalize small businesses.