Digital platforms in Manitoba have an obligation to collect and manage Retail Sales Tax (RST) from 1 December 2021. The Canadian province’s 2021 budget implements a number of measures to “help ensure Manitoba businesses are competing on a level playing field with their out-of-province online competition”.
When does RST apply to digital transactions in Manitoba?
Here are the applicable measures that apply from 1 December 2021, as per the Manitoba budget:
Firstly, RST applies to audio and video streaming. Note that streaming services providers must collect and remit the applicable RST.
Secondly, online marketplaces must collect and remit RST on behalf of third parties that sell through the platform. (Note, moreover, that tax authorities are increasingly placing the onus for collecting sales tax on online platforms themselves. As with, for example, new e-commerce rules in the EU.)
Online accommodation platforms
Finally, online platforms that facilitate booking accommodation in Manitoba must collect and remit the relevant RST.
Digital services GST/HST in Canada
The Manitoba regulations accord with Canadian moves to regulate sales tax on digital services and e-commerce.
Canada implemented regulations in July 2021 imposing GST/HST on nonresident businesses that provide digital services to customers in Canada.
Sales taxes in Canada can be affected by regulations that differ by province. Businesses providing digital services to customers in Canada should therefore seek expert guidance if they are uncertain about their tax obligations.
Is your business ready for the digital economy?
VAT, GST, HST, RST. Whatever it’s called, your company needs an effective, technology-driven tax compliance solution. Or you risk falling behind. After all, tax authorities are constantly updating the rules to meet the demands of the digital economy.
VAT on digital services is now the global norm. E-commerce VAT rules are more complex by the day. Vatglobal provides the technology and expertise you need to effortlessly manage global VAT in the digital age. It’s the more optimal way to ensure you are always 100% VAT compliant, everywhere you have an obligation.