Manitoba – Extension of Retail Sales Tax to Cloud Computing Services
1 January 2026
Manitoba Finance has recently updated its administrative guidelines to specify the Retail Sales Tax (RST) treatment of cloud computing services. The updated guidance explicitly confirms that, effective January 1, 2026, cloud computing services will be subject to Manitoba RST.
Scope of the New Measure
Historically, Manitoba has treated certain software as taxable tangible personal property. The updated guidance now clearly extends RST to cloud computing services, including:
- Software as a Service (SaaS): the provision of ready-to-use software applications over the internet, with the provider managing the infrastructure, applications, and data;
- Platform as a Service (PaaS): the provision of cloud-based hardware and software resources used to develop applications; and
- Infrastructure as a Service (IaaS): the provision of on-demand cloud infrastructure, such as computing power, processing, storage, networking, and virtualization.
Effective Date and Transitional Rules
Effective January 1, 2026, charges for cloud computing services are taxable.
Payments made prior to January 1, 2026 for the purchase of services covering a period beginning before January 1, 2026 are not taxable even if the service period extends beyond January 1, 2026.
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