Tax rate by region Manitoba

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

Tax in Manitoba: A Guide for SaaS Businesse

In Manitoba, a dual tax system applies to digital offerings, layering a 7% provincial Retail Sales Tax (RST) on top of the federal 5% Goods and Services Tax (GST) for a combined effective rate of 12%. Following an expansion of provincial rules to streaming and online media platforms, Manitoba further modernized its framework to levy the 7% RST on cloud computing services, SaaS subscriptions, and remote data processing. Non-resident digital suppliers must register with Manitoba Finance and the Canada Revenue Agency (CRA) once annual local sales exceed a CAD 30,000 threshold, with provincial RST returns and payments generally due by the 20th day of the month following the reporting period.

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Manitoba

Manitoba applies a 7% Retail Sales Tax (RST) on top of the federal 5% GST. Combined effective rate: 12%. 

Official government link: Canada Revenue Agency

12.00%

E-products and services VAT/Sales tax rate

Tax applicable for

B2B and B2C

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

Once exceeding CAD 30,000 in annual sales 

Online registration possible

Yes

Local representative needed

No

Registration procedure

Federal GST via CRA online; MB RST via Manitoba Finance Taxation Division. 

List of digital and electronic services liable for tax

Streaming services, digital subscription services, certain online platforms

Penalties

Federal: late filing 1% + 0,25%/month.

MB RST: penalties per provincial Retail Sales Tax Act.

Registration threshold

CAD 30.000 annual sales

Filing interval

Federal GST: by revenue tier.

MB RST: monthly, quarterly, or annually depending on average monthly tax

Filing deadline

Federal: one month after period end.

MB RST: 20th of the month following reporting period (TAXcess)

E-invoicing requirements

Not mandatory

Record keeping

5-6 years per MB RST regulations + 6 years federal GST (CRA)

How-To Guides: Alberta SaaS VAT

Step: 1 Threshold

Effective July 1, 2021, Canada requires the following non-resident vendors to register for and collect the federal GST/HST if their sales exceed CAD 30,000 in a 12-month period

 

• GST (Federal): Mandatory if taxable sales in Canada exceed **$30,000 CAD** over 4 consecutive quarters.
• RST (Provincial): Mandatory for out-of-province digital sellers if annual sales to Manitoba residents exceed **$10,000 CAD**.

Step: 2 Business Registration

• GST: Register via the Canada Revenue Agency (CRA) using the “Simplified” or “Regular” GST/HST registration.
• RST: Register with Manitoba Finance via the TAXcess portal.

Step: 3 TIN/VAT Number

• GST: 9-digit Business Number (BN) followed by “RT0001”.
• RST: 7-digit Manitoba RST Number.

Step: 1 Standard Rate

The rate in Manitoba is a combined rate:

• GST: 5% (Federal)
• RST: 7% (Provincial)
• Total Tax: 12%

Step: 2 Reverse Charge (B2B)

For cross-border SaaS, if a non-resident seller is not registered, the Manitoba business (buyer) must self-assess and remit the 7% RST directly to the province.

Step: 1 Selling B2C

Collect both 5% GST and 7% RST. As of 2026, SaaS is considered a taxable service in Manitoba regardless of local installation.

Step: 2 Selling B2B

• GST: Under the Simplified Regime, if the buyer provides a valid GST number, do not charge GST.
• RST: Tax is generally applicable unless the buyer provides an RST Exemption Certificate for resale. SaaS used internally by a business is taxable.

Step: 3 Invoice Requirements

Invoices should contain: 

1. Supplier Name & Addresses
2. GST and RST Registration Numbers
3. Invoice Date & Sequential Number
4. Description of Service (e.g., SaaS Subscription)
5. Breakdown of Tax (Show GST and RST separately)
6. Total Amount Payable

Step: 1 Filing Interval

• GST: Monthly, Quarterly, or Annually (determined by CRA based on volume).
• RST: Monthly (if tax >$5,000/yr) or Quarterly (if tax <$5,000/yr).

Step: 2 Filing Deadline

• GST: 1 month after the end of the reporting period.
• RST: 20th day of the month following the period end.

Step: 3 Submission

• GST: Filed via CRA My Business Account.
• RST: Filed via Manitoba TAXcess.

Step: 4 Record Keeping

Records must be maintained for a minimum of 6 years from the end of the latest tax year to which they relate.

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Alberta’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

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