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Transitional PST Inventory Rebate

The intent of the transitional PST inventory rebate is to prevent double taxation on construction materials purchased prior to April 1, 2013, held in inventory during the transition to the HST, and subsequently used in real property contracts to repair or make improvements to residential complexes.  These materials would have been subject to the PST when purchased prior to April 1, 2013, and HST would generally apply to the real property contract after April 1, 2013.


Eligibility for the Transitional PST Inventory Rebate:

The transitional rebate is available for construction materials:

  • on which PEI revenue tax (PST) has been paid;

  • held in inventory immediately prior to April 1, 2013; and

  • used in a contract to repair or improve a residential complex where the materials are incorporated into the complex on or after April 1, 2013 and before October 1, 2013, and where the HST was collected on the contract.


Qualifying Residential Complexes

The repair and improvement of residential complexes includes contracts to repair or improve land and items permanently attached to land, such as buildings and patios.  Repairs or improvements to rental housing, condominium and apartment buildings and long-term residential care facilities may qualify for this rebate.

Please note:  For multi-use buildings, the transitional rebate only applies to the portion of the real property contract related to the repair or improvement of a residential complex within the building.

Non-Qualifying Uses of Construction Materials

The transitional rebate is not available:

  • if the construction or substantial renovation of a residential complex is eligible for the GST/HST new housing rebate; or

  • if the construction materials are used in the repair or improvement of a building or structure that does not form part of the residential complex.

Applying for the Rebate:

Contractors must submit a Transitional PST Inventory Rebate application form along with supporting documentation before September 30, 2013.

For additional information refer to: RTG:189 Transitional PST Inventory Rebate

Please note:
This page is prepared for information purposes only, and should not be considered a substitute for the applicable statutes. Should there be any conflict between the contents of this page and the statutes, the statutes shall prevail.


Transitional PST Inventory Rebate

*Printable version of this form [44 KB PDF File]

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