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Manitoba, a province of Canada, introduces a 7% tax rate on streaming services, online marketplace, and accommodation services.

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Manitoba, a province of Canada, introduces a 7% tax rate on streaming services, online marketplace, and accommodation services effective from December 1, 2021. Manitoba has shared its plans in its 2021 budget to charge tax for streaming services, online marketplace, and accommodation services at the rate of 7%, the same as its Retail Sales Tax (RST).

 

According to Manitoba’s Budget 2021 document RST tax rate will apply to:

 

  • Streaming service providers will be required to collect and remit sales tax on the sale of their audio and video streaming services to Manitobans effective December 1, 2021
  • Online marketplaces will be required to collect and remit retail sales tax on the sale of taxable goods sold by third parties on their electronic platforms effective Dec 1, 2021.
  • Online accommodation platforms will be required to collect and remit retail sales tax on the booking of taxable accommodations effective December 1, 2021.

 

According to the government of Manitoba, enacting a cross-border digital tax law is much needed to help local businesses compete on equal footing with their “online competition” who are often non-resident digital service providers. It is also an additional effort in providing significant financial support in Manitoban’s fight against COVID-19.

 

Manitoba is a fourth province in Canada to enact the cross-boarded digital services tax law with the other three being Quebec, Saskatchewan and British Columbia.

 

Source: manitoba.co

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