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Manitoba 8% RST to Take Effect on July 1, 2013 

Canadian Tax Adviser


June 17, 2013


Manitoba announced in its 2013 budget on April 16, 2013 that the general rate of its retail sales tax (RST) will increase to 8% (from 7%) effective July 1, 2013. In a recent publication, Manitoba confirms that if the law is not enacted before July 1, 2013, the rate change will be retroactive and vendors are expected to collect the new rate as of July 1, 2013.

Although the government of Manitoba has introduced a bill that provides for the RST rate change effective July 1, 2013, and the bill is currently being debated, it has not yet become law. As we get closer to the effective date without the enactment of the law, businesses are left wondering how and when to prepare their systems and processes if the law is not actually enacted by July 1, 2013.


Manitoba's comment

In the new Notice RST13-08 "2013 Budget - Retail Sales Tax Changes" published on Friday, June 14, 2013, Manitoba notes:


The Province of Manitoba has introduced Bill 20, The Manitoba Building and Renewal Funding and Fiscal Management Act (Various Acts Amended), which provides for a change in the retail sales tax rate effective July 1, 2013, as announced in Budget 2013. Similar to other tax changes that came into effect on Budget day, if Bill 20 is enacted after July 1, 2013, the rate change will be retroactive to July 1, 2013, and vendors will be obligated to remit the tax at 8% retroactive to that date. Vendors are expected to charge and collect at the new rate commencing July 1, 2013.


For more information on the general RST rate change and other RST changes included in Bill 20, contact your KPMG adviser.


Information is current to June 17, 2013. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500


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