Manitoba's 2025 budget has proposed the expansion of retail sales tax to cover cloud computing services. Although this finance bill is still moving through the province’s parliamentary process, Manitoba Finance has already updated its information bulletin to help businesses prepare for the change. This change will go into effect starting January 1, 2026.

The bottom line: The tax will apply to all forms of cloud computing services (SaaS, PaaS, and IaaS) including video game subscriptions, cloud storage, and website hosting, with both resident and non-resident providers required to collect RST on services used in Manitoba.