The province of Manitoba has revised several information bulletins to clarify the application of retail sales tax and to update taxpayers regarding the administration of commodity taxes in the province.
Information Bulletin No. 19, “Municipalities, Municipal Governments and Local Government Districts” summarizes the retail sales tax (RST) exemptions provided to municipalities and local government districts. The bulletin was revised to indicate that oxygen used in the course of fire fighting, is included in the exemption available for fire fighting equipment carried on an exempt fire fighting vehicle. The exemption applies only to original and replacement purchases of equipment carried in a fire truck, but not on repair and maintenance services or parts for the related equipment. In addition, shredded tires purchased directly by a municipality or local government district for its own use are exempt from RST.
Information Bulletin No. 31, “Mechanical and Electrical Trades” has been updated to clarify that consumables/expendables used by a mechanical and electrical (M&E) trade to install or repair M&E equipment are exempt from RST if used up or consumed to the point of destruction while in direct contact with and transforming the components being installed. The bulletin further clarifies that goods purchased for a trade’s own use are not considered to be resold to a customer, even when indicated as a separate charge on an invoice to the customer for a supply and install contract. The tradesperson is required to pay or self-assess tax on these goods.
The following bulletins have been amended to reference The Fuel Tax Act or fuel tax, which was formerly known as The Motive Fuel Tax Act or motive fuel tax:
- No. 030, “Summary of Taxable and Exempt Goods and Services”;
- No. 037, “Promotional Distributor”;
- No. IFTA-001, “International Fuel Tax Agreement (IFTA)”; and
- No. IFTA-002, “Leased Operations Under International Fuel Tax Agreement (IFTA).
In addition, bulletins No. 018, “Farm-Use Equipment and Other Items” and No. 52, “Tree Nursery and Greenhouse Operations” now clarify that marked fuel, bunker fuel, and crude oil are included with electricity, propane and natural gas as forms of energy that may be purchased exempt from tax as follows:
- to heat or cool farm buildings situated on a farm used exclusively for the growing of farm crops or raising livestock;
- to heat a farm residence; or
- to dry grain in the course of farming, including the operation of aeration fans.
Furthermore, the following publications have been amended to remind taxpayers that payments on account may be made through the taxpayer’s financial institution’s online bill payment process. The required tax return must be filed separately. The printed payment transaction record will act as the taxpayer’s receipt when payment is made through this method.