Retail Sales Tax Exemptions

The following situations would not require the purchaser of a used vehicle to pay the Retail Sales Tax.

Settler's Effects

The Settler's Effects exemption is allowed on a vehicle brought in to Manitoba from out-of-province by a new resident, providing all of the following requirements are met:

  • The person lived outside of Manitoba for at least 6 months before moving here
  • The person owned the vehicle for at least 30 days before moving here
  • The person brought the vehicle into Manitoba within 6 months of moving here

Vehicle is a Gift from a Family Member

The "family member" giving the gift to you must be your:

  • father
  • mother
  • son
  • grandfather
  • grandmother
  • granddaughter
  • daughter
  • grandson
  • father-in-law
  • daughter-in-law
  • son-in-law
  • mother-in-law
  • spouse

A "spouse" is either of a man or a woman who:

  • are married to each other;
  • have cohabited in a conjugal relationship for a continuous period of:
  • more than three years, or;
  • more than one year and have a child of the union.

Sibling and non-immediate family gifts are taxable.

If you receive such a gift, you must provide a written note from the previous owner as verification.

Please note gifts between family members are only exempt if the Manitoba sales tax has been paid by the donor or the donor had received it tax exempt.

For example, if a mother from another province gifts a vehicle to their child in Manitoba, the vehicle is taxable. However, if the mother had previously lived in Manitoba and had paid the Manitoba sales tax on the vehicle, the vehicle would be exempt.

Title Transfer Through the Estate of a Deceased Person

No sales tax is required if you received the vehicle through these circumstances.

Vehicle was Won in a Contest

You don't have to pay sales tax if you can provide the purchase invoice or other document that proves the sponsor paid the tax on your behalf.

Vehicle or Owner is Specifically Exempted

Exempted vehicles:

  • Fire trucks and their equipment including ladders, aerial equipment, hoses, air-breathing and other lifesaving devices
  • Ambulances
  • Off-road vehicles purchased by a Treaty Indian living on a reserve. This applies only if the off-road vehicle was shipped from an authorized dealer directly to the reserve

Treaty Indians are also not required to pay tax in the following transactions:

  • motor vehicle and vehicle purchases by Treaty Indians living on a reserve
  • motor vehicles and vehicles that are on a reserve when sold to a Treaty Indian residing on a reserve and registering the vehicle to a reserve address

Transfer of a Company to Single Proprietorship from Corporation

In single proprietorships where the Legal Business Name or Trading Name is being changed to the proprietor's own name, there is no "sale" and no tax is paid.

A change in name from an individual to a corporate name is exempt only if the transfer is made at the time of incorporation.

Vehicle is a Homemade Trailer

You are not required to pay sales tax when you register a homemade trailer you built yourself.

However, if you are registering a homemade trailer you purchased from someone else, you are charged sales tax.

If you are unsure if your situation qualifies for one of the exemptions above please see Taxation Information Bulletin No. 054, or contact Manitoba Finance Taxation Division directly at 204-945-5603 or toll free 1-800-782-0318.