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Manitoba Government Removes PST From Personal Income Tax Return Preparation

For those in Manitoba:
In case you haven’t heard today’s news (Oct. 13, 2020), Finance Minister Scott Fielding announced today that, effective immediately, Manitobans will no longer have to pay the provincial sales tax when they get their personal income tax returns prepared.

Here is a link to the announcement:

Bulletin 057 on Accounting Services has been updated with the change.

Here is an excerpt from this bulletin:
“Preparing or filing a personal tax return is exempt. Estate planning advice,
tax planning advice or a secretarial or other administrative service provided
in conjunction with the preparing or filing of a personal tax return is also
exempt.
• Taxable accounting services such as preparing financial statements and
bookkeeping services provided in conjunction with the preparing or filing a
personal tax return remain taxable and must be itemized on the invoice.
• A personal tax return means a return to be filed in accordance with
paragraph 150(1)(b) or (d) of the Income Tax Act (Canada). It includes any
federal or provincial schedules or forms filed with that return and any
amendment to such a return.”

@Cameron
In regards to the bookkeeping services being taxable and the tax prep service not taxable, can there be a function where we can indicate if a part of the bill has RST or not?
I often add a bill charge for the bookkeeping time to get the self-employment info tax ready.

yes you should be able to detail out both services on an invoice for taxable and non taxable amounts

@Cameron
In reviewing TaxCycle for the upcoming tax season, I notice that no invoicing separation for Manitoba Clients has been made yet to separate the non-taxable Income Tax Preparation from the Bookkeeping Services and Accounting Fees. Will this be looked at for this upcoming tax season? Or is this something we should implement ourselves using the Template editor?

Also, I noticed under Invoicing (in Settings) that under the Province for Sales Tax, when I specify Manitoba, and also specify “Based on Taxpayer’s Residence”, it correctly removes the PST for Manitoba clients, however, it automatically ASSUMES that I charge GST and adds it to my client invoice. Being a small home based business charging only PST but not GST, is it possible to add a checkbox to disable the GST charge? I asked this in an earlier post last fall in a different thread, but this feature hasn’t been added. At present, I have to select “Do Not Charge” to insure NO GST is added, and then manually add the PST for Bookkeeping & Accounting Fees.

Thank you.

Gerry

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