The province of Manitoba has issued this new bulletin to explain both the seller’s and buyer’s requirements when business assets are sold in a bulk sale. A bulk sale is defined as the sale of business assets (including a barter or exchange) in connection with the seller ceasing to carry on business in Manitoba.
In a bulk sale, the seller is required to obtain a Bulk Sales Clearance Certificate, issued under section 45 of The Tax Administration and Miscellaneous Taxes Act (TAMTA), which indicates that the Taxation Division has no security interest in the business assets being sold at the date of the sale. The buyer of bulk assets, in most cases, will be required to pay retail sales tax on their purchase of taxable assets by completing a Casual Purchaser’s Return and submitting it along with the payment of the retail sales tax due to the Taxation Division, Minister of Finance.
MB TAMTA 002