Sales tax in Manitoba

Manitoba has two sales taxes on most sales: the federal GST and the provincial RST. Together they come to 12%. They work differently:

• The GST is filed with the CRA. A registered business claims back the GST it pays on business purchases as input tax credits.
• The RST is administered by Manitoba Finance, with its own registration and returns. RST you pay on what you buy for the business usually can't be claimed back: it's part of the cost.

Registration rules for RST differ from the GST’s. Check them with Manitoba Finance.

When you have to register

You must register for the GST/HST once your taxable sales pass $30,000 over four consecutive calendar quarters, or in a single quarter. Until then you’re a small supplier and registering is optional. Registering early lets you claim back the GST/HST on what you buy, but you then have to charge it and file returns. The CRA’s guide for registrants (RC4022) have the details.

Keeping track of it

Every sale you make and most things you buy have tax in them. To file, you need the tax you collected and the tax you paid, period by period. Spark Books does that from your bank statements: it splits the tax out of every transaction and works out your return’s figures, with the due date. Free.