News and Insights

Manitoba Retail Sales Tax Information Notice, “Travel Agencies Selling Taxable Insurance Contracts”

Tax Development Jul 05, 2012

The province of Manitoba has issued this information notice to remind travel agents that effective July 15, 2012, retail sales tax will apply on certain insurance contracts sold to residents of Manitoba.  

Taxable insurance contracts that may be sold by travel agents include trip cancellation insurance, baggage insurance and group insurance (except plans that cover direct health care costs) when sold to residents of Manitoba.  However, trip interruption insurance is not subject to tax.  

Businesses that sell insurance contracts, including travel agencies, must register to collect and remit the retail sales tax.  In many cases, a travel agency may deal exclusively with insurance companies that will be remitting the tax directly to Manitoba Finance, and therefore, the travel agency would not be required to register for retail sales tax.  However, in situations where an insurance company is not collecting the tax, the travel agency will be required to register to collect and remit the tax on taxable insurance contracts and any other taxable goods and services they sell.  

MB Notice Insurance July 2012