Manitoba has recently revised this bulletin which outlines the application of retail sales tax (RST) on aircraft and related materials and services purchased by commercial air carriers and other businesses that use aircraft for the purposes of trade. A partial exemption of RST is available when an aircraft is used both within and outside of Manitoba for the purposes of trade, but is not used solely to transport passengers or cargo for gain.
In this case, the purchaser is required to pay RST on the purchase or lease of the aircraft and any related repair parts and services, using the formula:
Purchase/lease price of aircraft, x Manitoba hours x 7%
parts and services Total hours
Previously, the above formula utilized the ratio of Manitoba miles divided by Total miles.
MB Bulletin No. 27