Immediate and Substantial Sales Tax Changes in Saskatchewan

On March 22, 2017, Saskatchewan, Canada announced its annual budget. The changes made to their sales tax were massive and virtually immediate. The most notable was a standard rate increase (effective at midnight that night) from 5.0% to 6.0%. Further, effective April 1 Saskatchewan’s exemptions for children’s clothing, real property services and certain food items was repealed. Although the exemption for diapers and similar baby items were initially announced as repealed, subsequent official guidance specifies they will remain exempt. The removal of Saskatchewan’s broad food exemption represents a dramatic shift in policy in a way that closely follows the national GST regime.

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