If you’re selling digital services and products to customers in Manitoba, then you might be liable for the province’s Retail Sales Tax (RST). This guide covers very important parts of the system:
- How to use Taxcess to register for RST in Manitoba
- How to apply for a Dealer’s License in Manitoba
- How to file a sales tax return in Manitoba
- How to pay RST in Manitoba
- What the Manitoba tax rate is
We’ve scoured the Manitoba government’s website to provide you with all the necessary information about RST for international businesses in one place.
How to register for RST in Manitoba
Manitoba offers an online RST registration for all businesses, or “vendors,” that aren’t physically located in the province.
In Manitoba, you get an RST number by applying for a dealer license. You can complete and submit this application on TAXcess. The TAXcess portal is also where you’ll file and pay the tax returns. More on that later!
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Go to the Manitoba TAXcess website and select whether you would like to proceed in English or French.
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From the main login page, click “Apply for Tax Account(s)” on the right side.
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Enter your business information in the following page. This includes selecting your business type. As a remote seller, your business is likely to fall under: Individual, Sole Proprietor, or Other.
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Depending on which business type you choose, you’ll have to submit name and contact information related to the business or yourself. Enter whatever is required and press ‘Next.’
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Be sure to select ‘Retail Sales Tax’ as the new registration! Your ‘Account Start Date” or Manitoba business start date is the day your business first became liable for Manitoba RST.
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Next you must enter the physical location address of your business, wherever it is located around the world. It must be a physical address; post office boxes are not accepted.
Note: If your business operates from several locations, you can enter multiple locations at the bottom of the page.
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Then enter the personal contact information of the person responsible for the tax registration. This is all pretty straightforward.
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Next you must answer questions about the nature of your business, i.e. what you sell and how much of it. You can check all that apply, but in our experience, most online businesses fall under the following 3 categories:
- Retail (Merchandise)
- Retail (Service)
- Business Services
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On the same page, you should add what types of products or services you sell, and the percentage that each makes up of your total sales. You can add as many different products or services as you need.
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In order to determine your RST filing frequency, you must estimate your average monthly sales tax remittance: is it above $5,000 CAD, less than $500, or in between? Check the box that applies for your business.
Note: You can roughly estimate this based on how much you expect to sell in Manitoba. High sellers should consider a higher expected RST remittance.
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On the next page, you create login information – such as a User ID and password – for your new TAXcess account!
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The last step is to review all your information and then certify that it’s all correct. Then you can submit your application!
Once your application is approved, you will receive your registration package by email. In that package, you will receive an RST number for your business!
The website doesn’t state how long you should expect to wait, but if you have any questions, you can email them at MBTax@gov.mb.ca.
Note: If you don’t want to apply in the TAXcess portal, you also have the option to fill out this application form (PDF) and mail it to:
What is the difference between a Manitoba RST number and an account number?
The RST number is a 7-digit number you receive when you register as a vendor. It’s a unique identifier that the Manitoba tax agency will use to identify you in the system. You should also provide your RST number on your sales and expense documents, or to your suppliers if you qualify for resale tax exemption.
Your account number is the 15-digit number found on your sales tax return and other communications from the Manitoba tax agency. You won’t need to do much with this one!
How to file RST returns in Manitoba
First things first, you must remit taxes in Canadian Dollars (CAD)! Be sure to convert any foreign currency before filing.
When to file and pay
How often you file MB RST depends on how much tax you report (or expect to report) in the Province each year. Smaller businesses file less frequently; higher grossing businesses file more often.
Filing frequency is assigned as follows:
- $500 CAD or less = Annually
- Over $500 up to $4,999 = Quarterly
- Over $5,000 or more = Monthly
Luckily, the Manitoba tax agency will email you 10 days before the end of your reporting period to remind you about filing an RST return!
The due date is the 20th day of the month following the end of the reporting period. For example, the quarterly return deadline for Q2 (April-June) would be July 20. The return deadline for annual filers is January 20.
You need to submit your RST return and pay whatever tax you owe by 4:30pm on the due date to avoid penalty and interest charges.
Note: You must still file every quarter even if you made no sales in Manitoba! This is called a “NIL” return, and it follows the exact same process as a normal return. (Just a little less data entry 😉)
How to file
Before you get started, you should collect all the information about your taxable sales in Manitoba during the previous quarter. The tax website suggests having these pieces ready:
- total sales and income
- total purchases and expenses
You can file online in your TAXcess account. Just log in here and click ‘File RST Return in the top navigation bar. If you need help, you can find it in the TAXcess Help section. The topic on “Filing a Return” offers complete instructions on how to file a tax return online!
How to pay
You can’t actually pay within the TAXcess system itself. The website states that you should arrange a funds transfer through your bank or other financial institution.
So this requires an extra step. After you’ve filed your return in TAXcess, be sure to send a bank transfer to pay the Manitoba Taxation Division. You can find more information about that within the TAXcess Help section.
What to do in between registering and filing?
Well, you must comply with all the rules for Manitoba RST! That means charging 7% RST on all B2C sales in the Province and adding Canadian GST, among other things.
For further reading that will help you stay compliant and successful as a remote seller, check out our Manitoba Business Guide for RST or our Canada HST/GST Guide for Digital Businesses.
Note: At Quaderno we love providing helpful information and best practices about taxes, but we are not certified tax advisors. For further help, or if you are ever in doubt, please consult a professional tax advisor or the tax authorities.