Requirement for charging MB PST (officially referred to by Manitoba as Retail Sales Tax (RST)) can apply to businesses, whether they are based in MB or not. Here’s a concise guide with the basics.
Should your business be registered for the MB PST?
Your business is required to be registered for sales tax if:
- you carry on business in Manitoba, selling taxable goods or services at retail
- you are a manufacturer, wholesaler, or importer in Manitoba (directly or through an agent)
- you bring into or receive in Manitoba, taxable goods for use by your business
- you are an out-of-province business that solicits and sells goods in Manitoba
- you are a mechanical or electrical (M&E) contractor performing work in Manitoba
- you operate a retail business in Manitoba on a temporary, short-term or intermittent basis
You are not required to be registered for sales tax if:
- your business sells only non-taxable goods or services
- you are a contractor (except an M&E contractor) who only supplies and installs goods into real property and you buy all goods from sellers registered for Manitoba retail sales tax
- your business’s annual taxable sales volume is under $30,000, and you buy all goods from sellers registered for Manitoba retail sales tax.
In order to be qualified as a ‘small seller’ and be exempt from collecting MB RST, the following conditions apply:
- pay Manitoba RST on all taxable goods and services purchased for your own use;
- pay Manitoba RST on all taxable goods and services purchased for resale, including goods and services purchased to produce other goods for sale;
- keep records of your sales; and
- sales invoices must indicate that RST is included in the price. RST mustnot be itemized on the invoice.
The Gist
The gist of everything above is that, for practical purposes, Manitoba’s threshold is essentially Nil if all your goods and services purchased for resale are purchased outside Manitoba.
Charging MB PST on Services
Taxable Services:
- Short-term accommodations of less than one month
- Accommodations purchased through an online sales platform
- Telephone and other telecommunications services
- Streaming services and media purchases
- Printing and related services
- Photography and related services
- Repairs and maintenance services for taxable products
- Accounting, architectural, legal, engineering, security and private investigation services (each of these have their own specific rules)
Tax Exempt Services:
- Services to real property (real estate) – e.g. inspections, construction labour, janitorial services, painting or washing of walls);
- Personal services – e.g. medical, hair, skin, nail, spa and bodymodification services
- Day care services
- Education
- Advice or consulting of a general nature
- …and a few more (refer to resources linked below)
Charging MB PST for Online Marketplace Sellers (E-Commerce)
If you are an e-commerce seller, who sells on an online marketplace like Amazon, then you should note:
- MB has mandated E-Commerce platforms, like Amazon, to register for and charge MB RST on sale of goods, even if the Seller (i.e. your business) is not registered for MB RST.
- Amazon would do this charge and remittance as Amazon, not on behalf of your business.
- So, if your only source of MB income is selling online through Amazon, for e.g., you could potentially skip registering for MB RST.
- However, if you also have taxable sales to MB through other avenues, for e.g. direct wholesale, or through your Shopify website (Shopify is not an online marketplace), then you would still be required to register, charge and remit MB RST if you meet all the prerequisites.
Online Accommodation platforms like AirBnB would work the same way as above.
How To Register For MB RST
Before you start charging MB RST (or any GST/PST for that matter), you need to register for it.
You can register for MB RST using any of the following options:
- Online: register using TAXcess
- Print and mail: this fillable form.
Resources
- Tax publications for industry specific guidance
- MB RST on Streaming Services and Online (E-Commerce) Platforms
- Details on Small Seller threshold
- Full publication on Taxable and Exempt Goods and Services
As you can see, these rules get complex, and outside of the most simple scenarios, need to be assessed and analyzed on a case-by-case basis.
For more detailed guidance on MB RST, refer to the resources linked above.
If you need help with your MB PST assessment, reach out to our team!
More Tips and Help
Need help for your specific circumstances? Reach out to our tax team here.
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