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Government: Retail Sales Tax


Taxes: Corporate | Retail | Payroll | Capital | Comparison | Federal | Municipal

The Retail Sales Tax is a 8% 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 that are used directly in manufacturing processes, including repairs and other services to them.
  • Direct agents, as defined in the Retail Sales Tax Regulation, which are used directly in manufacturing processes or directly in providing a taxable service. The exemption includes repairs and other services to direct agents.
  • Though not exempt, electricity used directly to operate machinery and equipment in manufacturing is taxable at a reduced PST rate of 1.6% Businesses must apply to the Taxation Division to qualify for the reduced tax rate.
  • 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: 9% Manufacturing Investment Tax Credit

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

  • Geophysical survey aircraft designed and used solely for prospecting or exploring for minerals as defined under The Mining Tax Act.
  • Geophysical survey and exploration equipment designed and used solely for prospecting or exploring for minerals as defined under The Mining Tax Act or used in oil or gas exploration and development.
  • Drill bits and explosive materials purchased and used for exploration for minerals or for mine development activities applicable to metallic mining.
  • Prototype equipment purchased and used to research and develop new mining technologies for minerals as defined in The Mining Tax Act.
  • Though not exempt, electricity used directly to operate machinery and equipment in mining, or at a completed well site to produce oil or gas in Manitoba is taxable at a reduced PST rate of 1.6%1 Businesses must apply to the Taxation Division to qualify for the reduced tax rate.

Film and Video Production:

  • Filmed, taped or other recordings for public exhibition or broadcast, and materials purchased to produce such recordings
  • Certain 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

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