The Government of Manitoba has confirmed the rate for PST (RST) is being reduced effective July 1, 2019 from 8% to 7%. Welcome news for those of us that have to charge it and of course those who have to pay it. The 7% sales tax rate applies to goods purchased after June 30, 2019 including goods for which the purchaser made a deposit on the purchase.
The existing 8% rate applies to Goods purchased before July 1 on credit or deferred payment arrangements where the payment is made after June 30, 2019. It also applies to goods fully paid for before July 1, 2019 but delivery is taken on or after this date. Contracts for services entered into before March 7, 2019 are taxable at 8% for services provided up to June 30, 2019
Contracts entered into after March 7, 2019 for services that commence after June 30, 2019 are taxable at 7%
These are some of the highlights of the new tax rate and how the transition is to be handled. As with most issues related to taxes there are a number of other details to be aware of to execute the transition accurately.
Feel free to contact and we will help you navigate through this process without going offside with the Government.
Greg Libbrecht, President Platinum Books & Five Star Accounting