Taxation Division
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Manitoba Finance-Taxation Division
(204) 945-5603
Manitoba Toll Free
1-800-782-0318
Electricity and Piped Gas
Effective April 1, 2008 the 7% Retail Sales Tax (RST) applies to purchases of electricity, piped gas, and coal. These products were previously taxed at 7% under Part I.1 of The Tax Administration and Miscellaneous Taxes Act. Businesses that collect RST on sales of these products, or purchase these products for their own consumption from a seller that does not collect the tax, are required to report and remit the tax monthly on their RST return.
Electricity and piped gas are exempt when purchased for use only in:
- heating a dwelling where the purchaser resides
- heating or cooling farm buildings
- producing heat for drying crops with a grain dryer in the course of farming.
Electricity and piped gas are taxed at the reduced rate of 1.4% when purchased for “mixed” use. An example of mixed use is when electricity is purchased principally for heating, but is also used for lighting in the purchaser’s residence or farm building.
Electricity is taxed at the reduced rate of 1.4% when purchased by a qualifying business to operate machinery or equipment in manufacturing, mining, or at a completed well site in Manitoba for the production of oil or gas. A business can apply for the rate reduction by completing and mailing the Application and Worksheet.
