Manitoba’s sales tax, called RST (Retail Sales Tax), comes with a threshold that sounds generous and is often useless. On paper, small businesses under $30,000 in sales do not have to register. In practice, that exemption does not apply to most out-of-province online sellers, which puts them right back at registering from the first sale.
The $30,000 exemption that usually does not apply
Manitoba raised its small-business threshold to $30,000. But there is a condition buried in the rules: the exemption is only available to businesses that have paid Manitoba RST on the inventory they resell. An out-of-province seller who buys stock from suppliers outside Manitoba has not paid that tax, so the exemption does not apply to them.
For a typical online seller sourcing products from outside Manitoba, that means the $30,000 number is effectively zero. You are expected to register once you start making direct sales into the province.
So when do you register?
Treat Manitoba the same way you treat Saskatchewan: if you make direct sales into the province, plan on registering. Manitoba RST is 7%. Once registered, you charge it on taxable sales to Manitoba customers and file returns on the assigned schedule. Manitoba also requires you to file even in periods with no sales, so nil returns still get filed.
The marketplace exception
As with the other provinces, if you sell only through a marketplace like Amazon, the marketplace collects and remits Manitoba RST for you, and you usually do not need your own registration. Add a Shopify or wholesale channel into Manitoba, and the obligation is back on you.
Why this one trips people up
The headline “threshold raised to $30,000” reads like relief, and plenty of sellers assume they are safe under it. The inventory condition is the part that gets skipped. If you import or source your products from outside Manitoba, do not rely on the exemption.
Frequently asked questions
Manitoba says there is a $30,000 threshold. Why doesn’t it help me?
The exemption only applies if you paid Manitoba RST on your resale inventory. Most online sellers buy stock from outside Manitoba and have not, so the exemption does not apply and they register from the first sale.
Do I have to file if I had no Manitoba sales in a period?
Yes. Once registered, Manitoba expects a return each period, even a nil one.
Does Amazon collect Manitoba RST for me?
On your Amazon sales, yes. On your own store or wholesale sales, no.
Related guides
- Do you need to register for PST as an online seller?
- Saskatchewan PST for online sellers
- Does Amazon collect PST and QST in Canada?
Not sure where you stand with Manitoba?
If you sell direct into Manitoba and source your products from elsewhere, you very likely need to register. Tell us how you sell and we will confirm it, then register your business and handle the Manitoba returns for you as your authorized representative.
See how our PST and QST registration service works, or get in touch and we will tell you exactly which provinces you need to register for.