Retail Sales Tax Exemptions

There are two categories of customers that would qualify for a retail sales tax exemption. They are non-residents, and Status Indians and Indian Bands. The details for each are listed below.

Please note the term Indian refers to the legal status of a person who is registered as an Indian under the Indian Act.
See the Government of Canada website for further information.

  1. Sales to non-residents – PST does not apply on vehicles purchased for out-of-province use by non-residents of Manitoba. The dealer must:
    1. Either deliver or ship the vehicle outside the province, by common carrier.
    2. Or can deliver the vehicle in Manitoba by issuing an interim registration permit. The permit number must be recorded on the sale invoice.
    3. Or can deliver the vehicle in Manitoba by recording the purchasers’ home province validated license plate number on the sale invoice.
  2. Sales to Status Indians and Indian Bands – Indians and Indian Bands may purchase vehicles PST-exempt provided:
    1. The title to the vehicle is transferred on a reserve;
    2. And the purchase documents are signed on a reserve,
    3. And the purchaser takes possession of the motor vehicle on a reserve (the dealer delivers the vehicle or ships it by common carrier F.O.B to the reserve.)
    4. To qualify for exemption on a lease the Indian must reside on a reserve, in addition to the above conditions.

If a Status Indian or Indian Band co-purchases a vehicle with a Non-Status Indian
When a Status Indian purchases a vehicle with a non-Status Indian, RST must be collected on the non-Indian percentage of the total purchase. In this case where there are two purchasers, one status and one non-status, then we would apply RST on 50%.

If the vehicle is purchased by a status Indian but co-signed by a non-status Indian, the transaction is exempt as the tax application is not affected by financing arrangements such as a non-status co-signor.


PLEASE NOTE: Corporations held by Indians or Indian Bands do not qualify for the PST exemption available to Indians.


Retail Sales Tax
How It Applies to Your Vehicle Purchase

RST Manitoba Vehicle Purchase

Provincial Sales Tax on Vehicles


GST on Sales to Native Canadians


  1. Customer must be a Status Indian, but is NOT required to reside on a reserve. The rules are the same whether the customer is purchasing or leasing the vehicle.
  2. Legal transfer of ownership must be completed on a reserve.
  3. Native must produce treaty number.
  4. Vendor must maintain proof that delivery was made to a reserve. Suggestions for proof of delivery to reserve and proof of Status of Indian:
    1. Photocopy his/her picture ID with treaty number.
    2. Have picture taken of person delivering the vehicle and native purchasing the vehicle in front of the band office on the reserve.
    3. Purchase $5.00 worth of gas at closest station to the reserve. Even better if you can purchase gas on the reserve; no tax to pay.
    4. Signature of the purchaser.

If a Status Indian or Indian Band co-purchases a vehicle with a Non-Status Indian
With regards to a financial agreement, the GST exemption is based on who is the main purchaser and who is co-signer. If the main purchaser is not Status then the GST must be applied. If the main purchaser is Status then the sale would be GST exempt as long as you follow the normal procedure stated above.

Please note these guidelines are the same for any Urban Reserves as well.


(for unclear situations) 1-800-959-8287


GST: Registrant vs. Non-Registrant

GST Registrant
Vehicle purchased for: $20,000.00
Trade in: $10,000.00
Dealership charges GST, paid on full amount (5% of $20,000): $1,000.00
Registrant claims 5% GST on the net amount back from Revenue Canada (5% of $10,000): $500.00
PST is charged on net difference (7% of $10,000): $700.00
Vehicle Purchased for: $20,000.00
Trade in: $10,000.00
GST is paid on net difference (5% of $10,000): $500.00
PST is charged on net difference (7% of 10,000): $800.00


Government of Canada GST/HST and motor vehicles