Manitoba charges 5% GST plus 7% RST (Retail Sales Tax) for 12% combined. A new 2026 rule adds RST to SaaS and digital services — know how it affects your subscriptions.
How your business purchases are taxed at the register.
Manitoba uses its own Retail Sales Tax (RST) at 7% alongside the federal 5% GST, for a combined 12%. The RST functions identically to PST in other provinces — it is never recoverable through Input Tax Credits. Only the 5% GST portion can be claimed back.
Manitoba's RST has been expanding in scope. Most notably, effective January 1, 2026, RST applies to SaaS, cloud computing, and digital services delivered to Manitoba customers. This means business subscriptions like accounting software, project management tools, and cloud storage now carry an additional 7% non-recoverable tax.
The province also applies RST to insurance premiums, legal services, and accounting fees — categories that are often exempt in other provinces. Self-employed workers in Manitoba face a higher effective tax burden on professional services than their counterparts in Alberta or even Ontario.
See exactly how taxes break down on common business purchases in Manitoba.
Manitoba
You pay $560 total. The $25 GST is recoverable via ITC. The $35 RST is a permanent cost — your true expense is $535.
Manitoba
Since January 2026, SaaS subscriptions in Manitoba carry 7% RST. On a $1,200 annual subscription, that's $84 in non-recoverable RST. The $60 GST is recoverable.
Manitoba
Manitoba charges RST on accounting and legal services — unusual among provinces. The $175 RST is not recoverable, adding to your true cost of professional services.
Your Input Tax Credit (ITC) filing roadmap.
Keep receipts with GST/HST registration numbers
Match each expense to a T2125 line item
Claim ITCs on your GST/HST return
In Manitoba, only the 5% GST is recoverable through Input Tax Credits on your CRA GST return. The 7% RST (Retail Sales Tax) is never recoverable. Include RST as part of your deductible expense on T2125 under categories like office expenses and telephone and utilities. If you sell taxable goods or services in Manitoba, you must register as an RST vendor with Manitoba Finance. Note: as of January 2026, RST applies to SaaS and digital services, so review your subscriptions for new RST charges.
1 advantages, 3 things to watch
Effective January 1, 2026, Manitoba's 7% RST applies to SaaS, cloud computing, and digital services. This adds a non-recoverable 7% to business subscriptions like QuickBooks, Slack, Adobe Creative Cloud, and cloud hosting. Budget for this new cost.
Manitoba Finance Bulletin — Digital Services RSTUnlike most provinces, Manitoba charges RST on legal and accounting services. A $3,000 accounting bill includes $210 in non-recoverable RST. This is unique to Manitoba and increases the cost of professional advice.
Manufacturing and processing machinery is RST-exempt in Manitoba. If you're a self-employed manufacturer or processor, significant equipment purchases avoid the 7% RST.
Manitoba charges RST on most insurance premiums including commercial vehicle, property, and liability insurance. This non-recoverable tax increases the cost of business insurance by 7%.
See profession-specific tax guides for self-employed workers in Manitoba.
Official government and support links for Manitoba self-employed workers.
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