Sales Tax Changes – What you Need to Know
Posted on June 28, 2019
The Manitoba government changed the Provincial Sales Tax from 8% to 7% effective July 1, 2019.
When government’s change sales tax amounts, additional administrative work is required by businesses:
1) Charge your Customers the Correct Amount of Sales Tax
Point of Sales (POS) Systems and Cash Registers need to be programmed with the new sales tax effective the correct date
Bookkeeping and Accounting systems must update their software with the new tax rate
Update procedures and train staff to use the correct tax rate on all Customer Invoices and Receipts
Read the government’s tax transition rules to insure your business is in full compliance
2) Pay Bills with the Correct Amount of Sales Tax
Check supplier bills and receipts before paying them to insure the correct tax has been charged
Many small businesses do not properly prepare for sales tax changes and this can result in added work and wasted time changing invoices or even reimbursing customers.
In addition, you may be a customer that has been overcharged. As a rule, DON’T pay more tax then you are required to pay!