Tax change to Take Place in Manitoba Canada

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Tax change to Take Place in Manitoba Canada

Manitoba’s provincial sales tax rate will increase from 7% to 8% from July 1, 2013, for a 10-year period ending June 30, 2023. Click here to read the official Information Bulletin.

All businesses are responsible to make certain they collect the proper amount of sales tax for parts and or labor sales. Each business must make the necessary changes in their shop management software to accommodate any change to tax rates. Before making any of these changes, each business should check with their local tax authorities. Mitchell 1 provides this document detailing how a shop owner would change and use any new tax rates in their Mitchell 1 or ShopKey management system.

In our example below, we are going to change the existing tax rate for parts and labor; we will be increasing the rate from 7% to 8.5%. Figure 1 shows the Tax Rate dialog which is accessed by clicking on ‘Setup’, ‘Standard Tables’, ‘Tax Rate’.

Figure 1

With the ‘Tax Rate’ table open, double click on the 7% under ‘Material Rate’ and over type it with 8.5 in the figure below, do the same with the value under ‘Labor Rate’ and click ‘Done’.

Figure 2

New estimates, repair orders, and invoices automatically use the new rate. Please note: Existing orders on the Work In Progress screen are not be automatically changed. When opening existing orders, you must click on ‘Yes’ ( Figure 3) to update the tax rate on those orders.

Figure 3

About the Author

John Dwulet

John Dwulet is the Senior Product Manager for Mitchell 1’s shop management software systems, including Manager SE and Manager Enterprise. He also serves as a trainer for Mitchell 1’s popular Management Training Workshops, and is an administrator of the shop management discussion forum. He joined Mitchell 1 in 1992 as a tech support agent and has held a variety of positions including quality assurance engineer, system integration analyst and corporate trainer.