Manitoba Sales Tax: Your 2025 Guide to GST & RST

Manitoba sales tax is simple compared to other provinces in Canada using harmonized sales tax (HST). However, it also comes with its own complexities. This Manitoba tax guide 2025 will help you navigate the province's two-part tax system.

Manitoba Sales Tax System

Manitoba is one of the provinces in Canada that charges separate provincial Retail Sales Tax (RST) and federal Goods and Services Tax (GST). Here's an overview of its two-part sales tax system:

• 5% GST (federal tax) – applied across Canada.
• 7% RST (Retail Sales Tax, also called PST) – a provincial sales tax applied on most tangible goods and certain services in Manitoba.

However, they are administered separately. GST is collected and remitted to the Canada Revenue Agency (CRA). On the other hand, RST is collected and remitted to the Manitoba Ministry of Finance – Taxation Division.

Businesses can claim Input Tax Credits (ITC) to recover GST paid on business expenses. RST doesn't offer the same.

What is Manitoba Retail Sales Tax (RST)?

Manitoba retail sales tax is a retail-level tax charged to the final customer. Unlike Quebec, Manitoba has no input tax credit system. So, businesses need to collect and remit RST. However, they can't claim back RST for their business expenses.

RST is simpler than Québec's QST system as it does not involve a value-added tax model. Additionally, it is less complex than provinces using HST because RST is collected separately from GST. However, it can be tricky for companies in the telecom, insurance, and software business.

How GST and RST Work Together for Manitoba Sales Tax?

The Goods and Services Tax (GST) and Retail Sales Tax (RST) operate independently in Manitoba. Both are applied to many of the same transactions individually on the base price.

Here's a table showing the taxable items, zero-rated supplies and common exceptions in Manitoba sales tax. It also shows when GST and RST are collected.

Category	Examples	Tax Status (RST & GST)
Taxable Items (RST + GST apply)	Clothing, electronics, appliances, furniture, telecommunication services, insurance premiums (certain types), computer software	5% GST + 7% RST
Zero-Rated Supplies (GST only)	Basic groceries (milk, bread, fruits, vegetables), prescription drugs, exports	0% GST, no RST applies (Businesses can claim GST input credits)
Exempt Items (No RST & GST may apply)	Residential rent, most health care and dental services, educational services, financial services	RST exempt, GST exempt or not applicable
RST-Exempt but GST-Taxable Items	Professional services (legal, accounting, consulting), commercial rent	5% GST applies, RST exempt
RST-Exempt Goods	Books, children’s clothing and footwear (under certain sizes), agricultural equipment and supplies, newspapers	7% RST exempt, 5% GST may apply

Calculate Your Manitoba Sales Tax

Calculating your Manitoba sales tax correctly is essential to ensure compliance and accurate pricing for your customers. This section will guide you through applying both GST and RST to your sales transactions.

Step-by-Step Calculation for Manitoba GST and RST

For example, you sell a laptop for $1,000.00 in Manitoba. The laptop is subject to both GST (5%) and RST (7%). Here’s how to calculate Manitoba sales tax.

Step 1: Determine the selling price (pre-tax)

Selling Price (Pre-Tax): $1,000.00

Step 2: Calculate GST

GST Rate = 5%

GST = Selling Price (Pre-Tax) x GST Rate

GST = $1,000 × 5%

GST = $50.00

Step 3: Calculate RST

RST Rate =7%

RST = Selling Price (Pre-Tax) x RST Rate

RST = $1,000 × 7%

RST = $70.00

Step 4: Add the taxes to the pre-tax price

Total Price (with taxes) = Selling Price (Pre-Tax) + GST + RST

Total Price (with taxes) = $1,000 + $50.00 (GST) + $70.00 (RST)

Total Price (with taxes) = $1,120.00

Using Online Manitoba Sales Tax Calculators & Tools

You can make the whole process easier using Manitoba sales tax calculator. CRA offers GST/HST calculator that also calculates Manitoba provincial sales tax (PST) or RST.

To get the total after taxes amount, just choose Manitoba in the drop-down list for "Province or territory." Then enter "Amount before taxes." The sales tax calculator Manitoba will show you the amounts of GST, PST (RST), and total after taxes.

The reverse sales tax calculator is helpful in finding out the amount before sales tax are applied. Just choose Manitoba for "Province or territory" and input the total after taxes amount. The calculator will give you the amounts of GST, PST (RST) and before taxes.

Sales tax automation tools, like Kintsugi, come with their own Manitoba GST/RST sales tax calculators. Kintsugi accurately calculates sales tax by applying the correct tax rates. With Kintsugi, you do not need to worry about sales tax calculations and if you do it right because it's Kintsugi's expertise.

Compliance Essentials for Businesses Managing Manitoba Sales Tax

Staying compliant with Manitoba's sales tax regulations is crucial for businesses to avoid penalties and audit risks. This section outlines the key compliance essentials every Manitoba business must follow when registering, collecting, and remitting GST and RST.

Manitoba Sales Tax Registration, Collection, & Remittance

Here's your checklist for registration, collection and remittance.

1. Registration

• Determine if your business is required to register for Manitoba Retail Sales Tax (RST) — if you sell taxable goods or services in the province.
• Register for an RST account with the Manitoba Ministry of Finance – Taxation Division.
• Register for a GST account with the Canada Revenue Agency (CRA) if annual taxable sales exceed $30,000 CAD.

2. Display Tax Numbers

Include your RST number and GST number (if applicable) on invoices, receipts, and tax documents.

3. Tax Collection

Charge and collect Manitoba sales tax considering the following rates:

• 7% RST on taxable goods and certain services.
• 5% GST on taxable goods and services.

Ensure exemptions (e.g., basic groceries, prescription drugs, children's clothing) are applied correctly.

4. Recordkeeping

Maintain accurate records of the following and keep it for six years for audit purposes:

• Taxable and exempt sales
• Collected RST and GST
• Purchase invoices and expense receipts
• Any valid exemption certificates

5. Filing Sales Tax Returns

• File RST returns with Manitoba Ministry of Finance monthly, quarterly, or annually, depending on your total sales volume to.
• File GST returns with the CRA based on your reporting period (monthly, quarterly, or annually).

6. Remittance of Taxes

Remit all collected RST to the Manitoba Ministry of Finance and GST to the CRA by the required due dates. Submit payment along with your tax returns to avoid interest and penalties.

7. Monitor Tax Rate Changes

• Stay updated on any changes to Manitoba sales tax, especially the RST and GST rates, exemptions, and filing rules.
• Adjust your POS system and accounting software accordingly.

Manitoba Sales Tax Quick Tips To Avoid Common Pitfalls

Although Manitoba sales tax is pretty straightforward, some still find it confusing. Here are five practical tips to help businesses avoid misclassifications and audit risks:

1. Understand Taxable and Exempt Items Clearly

Keep an up-to-date list of taxable, exempt, and zero-rated goods and services specific to Manitoba retail sales tax (RST) and GST rules to ensure you're charging the correct tax.

2. Train Staff on Sales Tax Rules

Make sure employees handling sales, invoicing, and bookkeeping are trained on Manitoba sales tax regulations to reduce the risk of manual errors or misclassification.

3. Keep Detailed and Organized Records

Maintain proper records of sales, exemptions, tax collected, and tax remitted for at least six years, which is required for audit purposes.

4. Review Your Tax Compliance Regularly

Conduct periodic internal reviews to ensure you apply RST and GST correctly, especially if your business introduces new products, services, or pricing models.

5. Use Automation Tools Like Kintsugi

Leverage tax automation software such as Kintsugi to automate tax calculations, manage exemptions, and generate audit-ready reports, minimizing human error and audit exposure.

Manitoba Sales Tax FAQs

What is the sales tax in Manitoba?

Manitoba has a combined sales tax made up of a 5% federal Goods and Services Tax (GST) and a 7% Provincial Sales Tax (PST), also called Retail Sales Tax (RST).

How much is sales tax in Manitoba?

The total sales tax rate in Manitoba is 12% (5% GST + 7% PST).

What is the provincial sales tax in Manitoba?

The Provincial Sales Tax (PST) in Manitoba is 7% and is applied to most goods and certain services purchased or used in the province.

What is GST and PST in Manitoba?

In Manitoba, the GST is a 5% federal tax applied to most goods and services, and the PST is a 7% provincial retail sales tax applied at the retail level on specific taxable goods and services.

When did PST change to 7% tax in Manitoba?

Manitoba's PST rate was reduced from 8% to 7% on July 1, 2019, as part of a provincial government tax relief measure.

Manitoba Sales Tax Key Points

• Manitoba uses a dual sales tax system made up of 5% federal GST and 7% provincial sales tax (PST), totaling 12% on many taxable goods and services.
• Businesses must register separately with Manitoba Finance for PST and with the Canada Revenue Agency (CRA) for GST.
• PST applies mainly to tangible goods, certain services (like telecommunications, legal services, and insurance premiums), some software, and equipment. GST has broader application.
• Businesses must collect, file, and remit both taxes separately, and are allowed to claim Input Tax Credits (ITCs) for GST and exemptions or deductions under certain PST rules.

Next Steps & Essential Resources for Manitoba Sales Tax

Check out these resources to learn more about Manitoba sales tax.

• Canada Revenue Agency (CRA)
• Manitoba Ministry of Finance – Taxation Division

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