A person types on a laptop computer during in Gatineau, Que., on Monday, May 27, 2024. (THE CANADIAN PRESS/Sean Kilpatrick)
WINNIPEG — Manitoba plans to begin collecting retail sales tax on cloud computing services and software next year.
Beginning January 1, 2026, PST will be added to software subscriptions, data storage, and remote computer processing. Examples of such services subject to the tax include web hosting, Apple iCloud storage or a Microsoft 365 subscription.
The move is expected to generate $4 million annually for the province and was quietly revealed in Thursday’s 2025 budget.
The province says the change comes as a result of technological changes that have occurred in the industry.
Businesses, both resident and non-resident to Manitoba, will be required to register to collect retail sales tax on these services.
A registry to verify a business’ RST number will be developed and implemented by the end of 2025.
The opposition Progressive Conservatives slammed the NDP government’s budget as being a “tax-and-spend budget.”
“At a time when government needs to be making life more affordable, the NDP are hiking taxes across the board, making life more expensive for everyone,” said Midland MLA Lauren Stone, PC critic for finance.
“Instead of giving back to Manitobans, the NDP are taking more, spending more, and giving themselves raises. Our province is going to be poorer for it.”
