# Manitoba Sales Tax for Contractors: No RST on Labour, 7% on Materials - **Canonical URL:** https://iluratechnology.com/keel/manitoba-sales-tax-for-contractors/ - **Jurisdiction / Region:** CA - **Last Verified:** Tue Nov 03 - **Keel Official Pricing (v5.3.2):** Free to download on the App Store (daily tracking included; optional 5-Folder Pack $49.99 per period, or Keel Lifetime $299.99 paid once — no monthly subscription) - **Summary:** Manitoba sales tax for contractors (Bulletin 005 & 008): no 7% RST on labour for real property work, pay 7% RST on materials, plus 5% GST & TPP rules. --- # Manitoba Sales Tax for Contractors: No RST on Labour, 7% on Materials **Short answer: Manitoba sales tax for contractors is 7% provincial retail sales tax (RST) plus 5% federal GST. On real property work, such as building, renovating, painting or installing windows, you do not charge RST on your contract: you pay 7% RST on the materials you buy and install, because Manitoba treats you as the consumer of those materials. When the goods you install remain movable property after installation, the rule flips and you collect RST on the total contract price, installation labour included.** > **⚡ Instant Manitoba Contractor 5% GST / 7% RST & T2125 Toolkit ($CAD):** Calculate your 5% GST and T2125 net profit above, save your first 5 Winnipeg quotes or material receipts in the **[iCloud Web Workspace (5 Free Saves)](/keel/workspace/)** (or click **🔗 Embed / CSV Template**), explore the **[Canadian Contractor & T2125 App Store Edition](/keel/cpp/canada-trades-gst-hst/)**, or **[Download Keel on the App Store ($0/mo)](https://apps.apple.com/us/app/keel-invoice-maker-receipts/id6786659713?ppid=1883fcbe-ca1d-4b99-b3d6-bdd88476d75f)** (`ca-trades`). That split, real property versus tangible personal property (TPP), is the whole of Manitoba's contractor regime. The rules are in Manitoba Finance's [Bulletin 005, Information for Contractors](https://www.gov.mb.ca/finance/taxation/pubs/bulletins/005.pdf) and [Bulletin 008, Installation, Repairs and Improvements to Real Property](https://www.gov.mb.ca/finance/taxation/pubs/bulletins/008.pdf). Other provinces' rates are in [GST, HST and PST rates by province](/keel/canada-gst-hst-rates-by-province/); for a province that taxes contractor labour, compare [Saskatchewan sales tax for contractors](/keel/saskatchewan-sales-tax-for-contractors/). ## What is the sales tax rate in Manitoba for contractors? 7% RST and 5% GST, as two separate taxes. | Tax | Rate | Administered by | Charged on real property contracts? | |---|---|---|---| | GST | **5%** | Canada Revenue Agency | Yes, once you are registered | | RST | **7%** | Manitoba Finance, Taxation Division | **No**: you pay it on materials instead | Manitoba Finance states that the [general RST rate is 7%](https://www.manitoba.ca/finance/taxation/taxes/retail.html), calculated on the selling price before GST. Manitoba's 2026 budget expanded exemptions for groceries but did not change the general rate. ## Is labour taxable in Manitoba? Not for real property. Bulletin 008 says RST does not apply on labour to install materials into real property, and that a contractor who supplies and installs materials into real property, or repairs or improves real property, is the consumer of the materials. The contractor does not collect RST on the amount charged under the contract but pays RST on the purchase price of the materials. The bulletin's examples of real property contracts include constructing or painting a house, garage or fence, installing a concrete or asphalt driveway, installing doors and windows, installing eavestroughs, soffits and fascia, pouring footings and basement walls, placing rebar on site, and landscaping. Labour is taxable when the work is on tangible personal property. Installation, repair, maintenance, painting, cleaning and similar services are taxable when performed on TPP. Bulletin 005 says contractors must collect RST on their labour charge for taxable services to TPP, such as repair, maintenance, installation and testing, even if no parts are used. ## Which installed items stay taxable in Manitoba? Bulletin 008 has a comparative list of items that remain TPP and items that become real property. Some of its entries surprise contractors: | Item (Bulletin 008 list) | Status after installation | |---|---| | Air conditioning systems | Remains TPP | | Appliances, portable or built-in | Remains TPP | | Wall-to-wall carpet, permanently attached | Becomes real property | | Area rugs | Remains TPP | | Domestic cabinets, shelving and counters permanently attached | Becomes real property | | Concrete foundations and piling | Becomes real property | | Awnings | Becomes real property | When you supply and install an item that remains TPP, Bulletin 005 says you collect RST from the customer on the total contract price, including the installation charge, and you do not pay RST when you buy that item. Check the full list in Bulletin 008 for anything not shown here. ## How do you price RST into a Manitoba real property job? Because you pay RST on materials and cannot charge it to the customer as a separate line, the tax is part of your material cost. **Worked example.** A fence in Winnipeg: you buy $2,000 of lumber and hardware and pay $140 RST and $100 GST. You price the job at $6,000 with the materials at $2,140, and invoice $6,000 + $300 GST = $6,300, with no RST line. If you are registered for GST, the $100 you paid is an input tax credit. The $140 RST is not recoverable and must be inside your price. | Line | Amount | |---|---| | Fence, supply and install | $6,000.00 | | GST (5%) | $300.00 | | RST | not charged (paid on materials) | | **Total** | **$6,300.00** | Bulletin 005 also says you pay RST on purchases, rentals and leases of equipment, on repairs to equipment, and on supplies you use for real property work. ## Do Manitoba contractors have to register for RST? Only in certain cases. Bulletin 005 says contractors must register with the Taxation Division if they sell taxable goods or services (for example, supplying and installing or repairing goods that remain TPP), install into real property goods they manufacture or buy tax-exempt, or buy taxable goods or services from businesses that do not collect RST, such as out-of-province suppliers. Applications can be made online through TAXcess, and there is no charge. Manitoba Finance has announced that from January 1, 2028, all RST-registered businesses must file and pay electronically through TAXcess. A contractor doing only supply-and-install real property work, buying everything from Manitoba suppliers who charge RST, may not need to register. A supply-only sale is different: in a supply-only contract, Bulletin 008 says you collect RST from the customer on the selling price. ## When do you have to register for GST? Once your taxable revenue passes $30,000 in a single calendar quarter or over four consecutive calendar quarters. Below that, GST registration is voluntary. The threshold is measured on revenue, not profit, and is the same in every province. [How to register for GST/HST](/keel/canada-register-for-gst-hst/) walks through it, and [how to calculate GST/HST](/keel/canada-how-to-calculate-gst-hst/) has the formulas. ## How should a Manitoba contractor's invoice look? For real property work: your price, GST at 5% if registered, your GST/HST number, and no RST line. For TPP work, such as installing an air conditioning system or repairing equipment, add an RST line at 7% on the total charge. On mixed jobs, separate the real property and TPP portions so each gets the right treatment. The general layout is in the [Canadian invoice template](/keel/canada-invoice-template/). ## What records support your RST position? Your purchase receipts carry most of the weight on real property jobs: they show the RST you paid on materials and which job they went into. For TPP work your invoices show the RST you collected. [Self-employed expenses and receipts](/keel/canada-self-employed-expenses-receipts/) covers what a usable receipt shows and the CRA's six-year rule. ## …and where does Keel fit? **Keel: Invoice Generator**, an app by Ilura Technology OÜ, keeps invoices, receipts and expenses together under the job they belong to. It is a record keeper, not a compliance tool: it does not register you for RST or GST, file returns, or connect to the CRA or Manitoba Finance, and it does not decide whether an item became real property. There is no bank connection. Invoices can carry a payment-link QR code. Free to download on the App Store. [Keel: Invoice Generator on the App Store](https://apps.apple.com/app/apple-store/id6786659713?pt=127772795&ct=blog_vergi_manitoba-sales-tax-for-contr&mt=8). ## Frequently asked questions **What is the sales tax in Manitoba for contractors?** 7% retail sales tax (RST) plus 5% GST. On real property contracts, Manitoba contractors do not charge RST to the customer; they pay 7% RST on the materials they buy and install. They charge 5% GST once registered. When installed goods remain tangible personal property, RST is collected on the full contract price. **Do contractors charge RST on labour in Manitoba?** Not on labour to install materials into real property. Bulletin 008 says RST does not apply to that labour. Labour on tangible personal property, such as repair, maintenance or installation of equipment and air conditioning systems, is taxable, and Bulletin 005 says RST must be collected on that labour even when no parts are used. **Do Manitoba contractors pay RST on materials?** Yes, on real property work. The contractor is treated as the consumer of the materials and pays RST on their purchase price. That RST cannot be claimed back, so it belongs in your price. Contractors also pay RST on equipment purchases, rentals, leases, equipment repairs and supplies used on the job. **Do I need to register for RST as a contractor in Manitoba?** You must register if you sell taxable goods or services, such as installing goods that remain tangible personal property, install goods you made or bought tax-exempt, or buy from suppliers that do not collect RST. Registration is free through TAXcess. Confirm your position with Manitoba Finance, Taxation Division. **Are built-in appliances and air conditioners real property in Manitoba?** No. Bulletin 008 lists air conditioning systems and appliances, portable or built-in, as items that remain tangible personal property after installation. When you supply and install them you collect RST on the total contract price, including installation, rather than paying RST on your purchase of them. --- *This article is general information, not legal or tax advice. Rules change — confirm with the authority named above.*