On March 27, 2026, we published an article discussing the Manitoba Budget announcement expanding the retail sales tax ("RST") exemption on basic groceries.
Since then, Manitoba Finance has released Information Notice RST 26-01 (revised May 2026), which provides additional guidance and clarification regarding the scope of the exemption. This article summarizes the changes that will take effect on July 1, 2026.
Expanded RST Exemption for Food and Beverage Products
Effective July 1, 2026, Manitoba will expand the RST exemption for food and beverages intended for human consumption. Manitoba Finance has confirmed that the exemption will apply regardless of packaging or serving size.
The expanded exemption includes the following products:
Ready-to-Eat Prepared Foods
- Self-serve sandwiches, soups, rotisserie chickens, samosas and similar items.
- Prepared vegetable, fruit and gelatine salads where the dressing is mixed with the ingredients.
- Platters of desserts, cheese, canapés, pâtés, crudités, cold cuts, fruits, vegetables, frozen shrimp rings, sushi and similar prepared food arrangements.
Beverages
- De-alcoholized beer and wine containing 1 per cent or less alcohol by volume.
- Carbonated beverages, including carbonated water, whether flavoured or not.
- Non-carbonated fruit juice beverages and fruit-flavoured beverages containing less than 25 per cent natural or reconstituted fruit juice.
- Fruit-flavoured yoghurt beverages containing less than 25 per cent fruit juice.
- Powdered fruit-flavoured beverage mixes requiring mixing with water.
- Non-carbonated beverages such as spring water, drinkable yoghurt and chocolate milk.
Baked Goods
- Cakes, muffins, pies, pastries, tarts, flans, cookies, doughnuts, brownies, graham crackers and croissants with sweetened filling or coating when sold in single servings or quantities of fewer than six items.
Snack Foods
- Pudding, flavoured gelatine, mousse and similar dessert products sold in single servings.
- Candy, chocolate, chewing gum and other confectionery products.
- Nuts, seeds and popcorn coated with candy, chocolate, honey, sugar, syrup or artificial sweeteners.
- Marshmallows and cream sweets.
- Potato chips, corn chips, cheese puffs, pretzels and similar snack foods.
- Salted nuts and salted seeds.
- Mixtures of nuts, granola products and snack mixes.
- Ice cream, frozen yoghurt, sherbet, frozen pudding and similar products sold in single servings or multiples of single servings.
- Fruit bars, rolls, drops and similar fruit-based snack foods.
Prenatal Vitamins
As part of Budget 2026, Manitoba will also remove RST on prenatal vitamins effective July 1, 2026.
This exemption is intended to support maternal health and healthy fetal development. Other vitamins, minerals and dietary supplements will remain subject to RST.
Products Remaining Taxable
RST will continue to apply to:
- Beverages containing more than 1 per cent alcohol by volume.
- Dietary supplements (other than prenatal vitamins).
- Taxable non-food items.
Sales That Remain Taxable
The expanded exemption does not apply to sales made by:
- Restaurants, coffee shops, food courts, cafeterias, concession stands, food carts and food trucks.
- Food service locations within grocery stores where food and beverages cannot be purchased through the regular grocery checkout.
- Licensed premises operating under a liquor service licence.
- Cinemas and sports or live entertainment venues.
- Sports and recreational facilities, including arenas, golf courses, curling clubs and hunting or fishing lodges.
- Vending machines.
- Catering service contracts.
What Businesses Should Do
Businesses that sell food, beverages, vitamins or related products in Manitoba should review their product tax coding and point-of-sale systems before July 1, 2026 to ensure that the new exemptions are applied correctly.
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 June 25, 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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