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Government: Retail Sales Tax

Taxes: Corporate Retail Payroll Capital Comparison Federal Municipal

The Retail Sales Tax is a 7% tax applied to the retail sale or rental of most goods and certain services in Manitoba. The tax is calculated on the selling price, before the federal GST is applied.

Selected examples of exempt goods and services:

Manufacturing and Processing

• Materials being manufactured into a product for sale.
• Catalysts used directly in manufacturing.
• Dies, jigs, moulds and patterns, and other consumable materials (direct agents) used directly in manufacturing and processing, including repairs and other services to them.
• Electricity used directly to operate machinery and equipment in manufacturing is taxable at a reduced PST rate of 1.4%
• For details on exempt goods and services, please see Manitoba Finance’s bulletin no. 030 Summary of Taxable and Exempt Goods and Services
• See also:  10% Manufacturing Investment Tax Credit

Mining & Oil &Gas (includes M & P exemptions/credits plus the following):

• Geophysical aircraft and survey equipment designed and used solely for prospecting or exploration for minerals as defined under The Mining Tax Act, or used in oil and gas exploration and development.
• Drill bits and explosive materials used for exploration for minerals or for mine development activities applicable to metallic mining.
• Prototype equipment used to research and develop new mining technologies for minerals as defined in The Mining Tax Act
• Electricity used directly to operate machinery and equipment in mining, or to produce oil/gas are taxable at a reduced PST rate of 1.4%

Film and Video Production:

• Filmed, taped or other recordings for public exhibition or broadcast, and recording materials purchased for their production.
• Production services (photographing, developing/printing of film, recording/amplifying of sound) are not taxable when used to produce filmed, taped or other recordings for public exhibition or broadcast.
• See also:  Manitoba Film and Video Production Tax Credit

Miscellaneous Exemptions:

• Commercial aircraft (including repairs) used solely to transport passengers or freight for a fee.
• Custom developed software.

For detailed information, please contact:

Manitoba Finance: Taxation Division

Tel: (204) 945-5603 or 1-800-782-0318 (Winnipeg)
        (204) 726-6153 or 1-800-275-9290 (Brandon)
Web: www.gov.mb.ca/financ e/taxation