It was announced during the Manitoba Budget held on March 24, 2026 that effective July 1, 2026, the retail sales tax exemption on basic groceries will be expanded to include additional food and beverages for human consumption sold by grocery stores.
This expended exemption will cover food items including:
- Ready-to-eat prepared food such as sandwiches, soups, rotisserie chickens and samosas.
- Platters or arrangements of prepared foods such as sushi, cold cuts and cheeses.
- Potato chips, corn chips, pretzels and cheese puffs.
- Salted nuts and trail mixes.
- Carbonated beverages and beverages containing 1 per cent or less alcohol by volume.
- Single servings of sweetened baked goods.
- Confectionery items such as candy, chocolates and chewing gum.
The exemption will not apply to dietary supplements and taxable non-food items sold in grocery stores.
It is important to note that this exemption will only apply to products sold at grocery stores. A grocery store means a physical location or an online sales platform that offers for sale some of the following food products for preparation and consumption outside of the location:
- Canned, dry and frozen foods.
- Fresh fruit and vegetables.
- Meats, fish and poultry, whether fresh or prepared.
- Dairy products.
A grocery store does not include:
- A food service establishment within a grocery store where food suitable for immediate consumption and sold separately from non-taxable food, for example a coffee shop, restaurant or food order counter located in a grocery store.
- A store that is:
- less than 280 square meters,
- holds a retail dealer’s licence issued under The Tobacco Tax Act, and
- located in a municipality incorporated as a city.
- A restaurant or licenced premises specified in a liquor service licence issued under The Liquor, Gaming and Cannabis Control Act.
- A cinema or a sports or live entertainment venue where, motion picture films, sports events or live performances are staged.
- A sports or recreational facility including a golf course, curling club or hunting or fishing lodge.
- A vending machine.
- A contract for, or in conjunction with, catering services.
Prenatal Vitamins
Effective July 1, 2026, retails sales tax will no longer apply on prenatal vitamins.
While this article provides general information, Crowe Soberman recommends that you speak with your tax advisor before taking specific tax planning steps. Information is current to March 27, 2026. The information is of a general nature and is not intended to address the particular circumstances of an individual or entity. We endeavor to provide accurate and timely information; however, there is no guarantee that such information is accurate in the future.
Frédéric Pansieri
Partner,
Indirect Tax
Frédéric Pansieri Professional Corporation
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