Heads Up! Changes Are Coming to Manitoba Provincial Sales Tax (PST)

As of July 1st 2019, provincial sales tax (PST) in Manitoba will DECREASE from 8% to 7%.

“What’s affected?”

For most practitioners, that means you have to charge the lower PST rate on taxable products, such as vitamins, supplements and general merchandise, starting July 1st.

Most health care services - including naturopathy, acupuncture, chiropractic, massage therapy and physiotherapy - remain exempt from PST. While supplements themselves are taxable, commissions on supplement sales are not taxable.

“How can I prepare for this change?”

You’ll need to update all your payment processing systems to start charging the reduced tax rate of 7% as of July 1st. This means all online sales systems, in person point-of-sale machines and invoices/receipts will all need to be updated to reflect this change. 

“Will this cause confusion for me at tax time?”

For our clients, we’ll ensure the transition is smooth sailing! If you’re not our client, you’ll want to ensure you’ve got a good tracking system in place for all revenue and expenses so you can differentiate transactions that fall before the change and after. That way reconciling your accounts at the end of the year will be as easy as [gluten free, paleo] pie!