Self-Employed Tax Guide for Manitoba
Manitoba adds a 7% Retail Sales Tax (RST) to the 5% GST. Only the GST comes back as an input tax credit; the RST becomes part of what the purchase costs you. Since January 1, 2026, RST also applies to cloud software.
Manitoba Tax Structure
How your business purchases are taxed at the register.
Manitoba's Retail Sales Tax (RST) is 7%, charged on the selling price before GST, on the retail sale or rental of most goods and certain services. Manitoba Finance (Taxation Division) administers it, not the CRA. The 5% GST on the same receipt goes to the CRA and, if you are a GST registrant, comes back as an input tax credit (ITC). The RST does not. ITCs recover only GST/HST, so the RST you pay is part of the cost of the purchase.
That changes how you record a Manitoba receipt. For something you deduct right away, such as office expenses, your T2125 expense is the price plus RST, without the GST you claim back. For something you depreciate, such as a desk or a vehicle, the RST is added to the capital cost you use for capital cost allowance (CCA).
The list of taxable services matters more in Manitoba than in most provinces. Accounting, legal, engineering and architectural services are taxable. So are telephone services, liability and professional liability insurance, and, from January 1, 2026, cloud computing (software, platform and infrastructure as a service). General advice or consulting, personal services, services to real property and the preparation of a personal income tax return are not taxable.
ScanForTax reads the GST and the RST on each receipt as separate amounts and assigns the expense to a T2125 line, so recoverable GST and non-recoverable RST don't end up in the same total. It doesn't calculate CCA, and it doesn't file your GST or RST returns.
Tax Calculation Examples
See exactly how taxes break down on common business purchases in Manitoba.
$800 Desk and Chair
Manitoba
You pay $896. The $40 GST comes back as an ITC. The $56 RST doesn't, so it goes into the furniture's capital cost: $856 is added to CCA Class 8, not $800.
$1,200/year Cloud Accounting Subscription (2026)
Manitoba
Cloud software has been subject to RST since January 1, 2026. Claim the $60 GST as an ITC and deduct $1,284 on your T2125. If an out-of-province vendor doesn't charge RST, Manitoba expects you to self-assess it.
$1,500 Bookkeeping and Year-End Financial Statements
Manitoba
Bookkeeping and financial statements are taxable accounting services in Manitoba. The $75 GST is an ITC; the $105 RST makes the deductible fee $1,605. Preparing your personal tax return is RST-exempt, so it should be itemized separately.
How to Recover Tax in Manitoba
Your Input Tax Credit (ITC) filing roadmap.
Collect
Keep receipts with GST/HST registration numbers
Categorize
Match each expense to a T2125 line item
File & Recover
Claim GST ITCs; the RST stays part of the expense
Recovery in Manitoba works for only one of the two taxes. Claim the 5% GST as ITCs on the GST/HST return you file with the CRA. Treat the 7% RST as part of the cost: include it in deductible expenses such as professional fees and telephone and utilities on your T2125, or in the capital cost of equipment, furniture or a vehicle. If an out-of-province supplier doesn't charge Manitoba RST on a taxable item you use in Manitoba, Manitoba Finance expects the purchaser to self-assess and pay it. Your own RST registration is a separate question: it depends on whether you sell taxable goods or services, and on the $30,000 small business rule below.
Manitoba-Specific Tax Rules
2 advantages, 3 things to watch
RST on Cloud Software Since January 1, 2026
Heads upCloud computing (software, platform and infrastructure as a service, including cloud storage and website hosting) became taxable on January 1, 2026. It applies when the service is used by a person or on a device ordinarily situated in Manitoba, wherever the vendor is located. Payments made before 2026 for service periods that began before 2026 aren't taxable. If a subscription is used both inside and outside Manitoba, the RST can be prorated by the number of users or licences in Manitoba. Prewritten software you download was already taxable; custom software built for you is exempt.
Manitoba RST Bulletin 033 (revised January 2026)Accounting and Legal Fees Carry RST, With Exceptions
Heads upBookkeeping, financial statements, payroll processing and tax returns other than a personal return are taxable accounting services, and most legal services are taxable too. But preparing a personal income tax return is exempt, and so is tax and estate planning advice. Taxable work done alongside a personal return, such as bookkeeping, must be itemized separately on the invoice. Legal work on a will, a health care directive or a related power of attorney is also exempt.
Manitoba RST Bulletins 056 (Legal Services) and 057 (Accounting Services)Liability Insurance Is Taxable; Property Insurance and Autopac Are Not
Heads upRST applies to commercial general liability, professional liability (errors and omissions) and similar policies. Property insurance on buildings and on the contents of commercial premises has been exempt since July 1, 2020. Insurance for vehicles registered under The Drivers and Vehicles Act, including Basic and Optional Autopac, is exempt.
Manitoba RST Bulletin 061 (Insurance); Notice RST 20-04No RST Registration Under $30,000 in Taxable Sales, With Conditions
AdvantageSince 2024, a business with annual taxable sales under $30,000 doesn't have to register and collect RST. It pays RST on its own purchases, its invoices must say RST is included in the price, and it must not show RST as a separate amount. The exception isn't available if you buy from out-of-province suppliers that don't collect Manitoba RST, or if you sell tobacco or liquor. Once your sales pass $30,000, you have one month to register. If you sell only non-taxable services, such as general consulting, you don't need an RST number at all.
Manitoba Notice RST 24-01; "Do I Need to Register?" (January 2026)RST Exemptions Self-Employed People Actually Use
AdvantageFuel taxed under The Fuel Tax Act, such as gasoline and diesel for your vehicle, is exempt from RST. So are basic groceries, books without advertising, general advice or consulting, personal services, and services to real property, such as construction labour or janitorial work. Repairs to heating, plumbing and electrical systems are still taxable. Since July 1, 2026, manufacturers and processors can buy qualifying machinery that is used directly in production and attached to land or a building without paying RST.
Manitoba RST Bulletins 030 (Summary of Taxable and Exempt Goods and Services) and 065Popular Professions in Manitoba
See profession-specific tax guides for self-employed workers in Manitoba.
Provincial Resources
Official government and support links for Manitoba self-employed workers.
Manitoba Finance: Retail Sales Tax
gov.mb.caManitoba Finance's overview of the 7% RST, with links to bulletins, forms and the Act.
RST Bulletin 030: Taxable and Exempt Goods and Services
gov.mb.caThe full list of what RST applies to, and what is exempt or taxed at a reduced rate.
RST Bulletin 033: Computer Software and Online Services
gov.mb.caHow RST applies to software and to cloud computing from January 1, 2026.
Notice RST 24-01: Registration Requirement Eliminated for Small Business
gov.mb.caThe $30,000 small business registration exception and its conditions.
CRA: GST/HST for Businesses
canada.caFederal GST registration and input tax credits, which the CRA administers in Manitoba.
Frequently Asked Questions
Can I claim Manitoba RST as an input tax credit?
How do I record RST on my T2125?
Do I need to register for RST?
Does RST apply to my software subscriptions?
Is my accountant's bill subject to RST?
Is gas for my work vehicle subject to RST?
Claiming back the sales tax you pay in Manitoba: GST/HST input tax credits guide →
Related Province Guides
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