News and Insights

Manitoba Releases Revised Information Notice And Several PST Bulletins

Tax Development Feb 28, 2013

During February 2013, Manitoba Finance issued revisions to the following Retail Sales Tax (RST) publications:

RST Information Notice 13-02 “Fairs, Exhibitions and Trade Shows”, has been revised to indicate that miscellaneous services that may be offered at a fair, exhibition or trade show now include tattooing, ear piercing and skin care treatments as taxable personal services.  This document also notes that businesses providing services in Manitoba are required to pay or self-assess RST on equipment and supplies purchased for their own use in providing their service.  The notice also clarifies that for equipment brought into the province on a temporary basis, RST is required to be paid based on 1/1095 of the equipment’s fair value for each day that the equipment remains in the province.

RST Bulletin 024, “Charitable & Non-Profit Organization Fund Raising Activities” now states that charities involved in commercial sales, but with annual taxable sales under $10,000, may not be required to register.

RST Bulletin 029 “Food and Beverages” includes chip dip and salsa as examples of exempt food.  In addition,  fruit flavoured yoghurt beverages that contain less than 25 per cent fruit juice by volume, and are not milk-based, will be taxable.  Lastly, the age limit for non-taxable food and beverages provided at recreational camps run by a charitable or non-profit organization has changed, from 14 years to 17 years.

RST Bulletin 061 “Insurance” now includes ransom and kidnapping insurance as an example of insurance contracts subject to RST when sold to a Manitoba resident.  Also, guidelines for the collection and remittance of tax on instalments for definite term multi-term contracts have been added.  Furthermore, the RST may be refunded on a proportional basis (for taxable and non-taxable portions)for insurance contracts entered into before July 15, 2012, but changed after July 14, 2012 to increase coverage, where the contract was subsequently cancelled.  Lastly, exemptions on insurance covering farming and farm property have been revised.