In
Ontario,
Canada - some sales
tax exemptions do apply at point of sale at the cash register as per below. We just have to show our Certifcate of
Indian Status Card. As far as the Jay Treay - we are able to
live and work in the
United States aswell, we just have to prove 50%or more that we are
Native American and issued a social security number.
Exempt Purchases
General
Status Indians,
Indian bands and band councils may purchase most
goods or services without
paying RST, as long as the
goods are for use on the
reserve. Services, such as commercial parking, transient accommodation, and telecommunication services, must be provided on the
reserve in
order to be exempt from
RST.
To claim an
exemption,
Status Indians must show vendors their
federal "Certificate of
Indian Status" identity
card.
Indian bands and band councils must provide the vendor with a valid Purchase
Exemption Certificate (PEC). See
RST Guide 204 - Purchase
Exemption Certificates for further details.
Insurance Premiums
The 8 per cent
RST does not apply to contracts of
insurance entered into by
Status Indians,
Indian bands or band councils in respect of
property located on a
reserve.
If a
Status Indian resident on a
reserve works for an employer located off-
reserve, the premium payments made by both the
Status Indian and the employer for group
insurance are exempt from
RST.
RST is also not charged on amounts
paid into a
benefits plan, either by or for a
Status Indian resident on a
reserve.
Effective April
1, 2004,
RST has been eliminated on premiums
paid for all contracts of automobile
insurance.
Motor Vehicles
Status Indians,
Indian bands and band councils may purchase motor vehicles on-reserve exempt from Retail Sales
Tax (RST), including the
tax for fuel conservation, regardless of the address to which these vehicles are registered.
When
Status Indians,
Indian bands and band councils purchase motor vehicles off-reserve and register them to a non-reserve address, they are entitled to an
exemption from
RST provided the purchaser shows their "Certificate of
Indian Status" identity
card (individual
Status Indians) or issues a valid PEC (Indian bands and band councils) to the vendor, and the vendor arranges to have the vehicle delivered to a
reserve.
When motor vehicles are purchased off-reserve and registered to a
reserve address,
Status Indians,
Indian bands and band councils are eligible for an
exemption from
RST provided the purchaser shows their "Certificate of
Indian Status" identity
card (individual
Status Indians) or issues a valid PEC (Indian bands and band councils) to the vendor.
The vendor must record on the invoice the
Status Indian`s
federal "Certificate of
Indian Status" identity
card number, name, and
Indian band or registry number to substantiate the non-collection of
RST.
Status Indians may claim an
exemption from
RST when purchasing repair parts over the counter or repairs (parts and labour in a single transaction or labour only) by presenting their
federal "Certificate of
Indian Status" identity
card. The vendor must record on the invoice the
Status Indian`s
card number, name and
Indian band or registry number to substantiate the non-collection of
RST.
Indian bands and band councils must issue a valid PEC.
Leases of Motor Vehicles
RST does not apply to lease payments, or short-term rentals (i.e., less than 12 months), on motor vehicles leased on-reserve by
Status Indians,
Indian bands or band councils regardless of the address to which these vehicles are registered.
When
Status Indians,
Indian bands and band councils lease motor vehicles off-
reserve and register them to a non-reserve address, they are entitled to an
exemption from
RST provided the lessee shows their "Certificate of
Indian Status" identity
card (individual
Status Indians) or issues a valid PEC (Indian bands and band councils) to the lessor, and the lessor arranges to have the vehicle delivered to a
reserve.
When motor vehicles are leased off-reserve and registered to a
reserve address,
Status Indians,
Indian bands and band councils are eligible for an
exemption from
RST provided the lessee shows their "Certificate of
Indian Status" identity
card (individual
Status Indians) or issues a valid PEC (Indian bands and band councils) to the lessor, the address on the lease agreement is a
reserve address, the plate is registered to the
reserve address (this does not apply to daily/weekly rentals) and the
insurance for the vehicle is registered to the
reserve address.
The vendor must record on the lease agreement the
Status Indian`s
federal "Certificate of
Indian Status"
card number, name, and
Indian band or registry number to substantiate the noncollection of
RST.
Indian bands and band councils must provide the vendor with a valid PEC.
Building Materials
Contractors may purchase building materials exempt from Retail Sales
Tax (RST) for certain buildings and structures situated on reserves. To qualify for the
exemption, the
cost of such projects must be
paid for by the band council, and the buildings, such as a community centre, hospital, school, etc., must provide a community service for the
reserve. When entering into a construction
contract for an exempt community building project, the
contract should be made on an RST-excluded basis.
If an
Indian band or band council rents
reserve housing to individual
Status Indians, and the
cost of the housing construction is
paid directly by an
Indian band or band council, the contractor may purchase the materials incorporated into the housing exempt from
RST by giving suppliers a valid PEC. The rental of housing by an
Indian band or band council is considered to be the provision of a community service.
Indian bands and band councils should request that contractors quote tenders on an RST-excluded basis.
The
exemption for contractors applies only to the preceding conditions detailed in this section. Contractors, including contracting corporations
owned by
Status Indians,
Indian bands and band councils, must pay RST on items purchased for a building or structure, such as a house, built for
Status Indians on a
reserve. Since contractors are the end consumers of all items purchased for real
property contracts, they are responsible for determining how
RST applies when entering into this type of
contract.
Individual
Status Indians can purchase building materials exempt from
RST if the materials are purchased for their own use on a
reserve. The vendor must record the
Status Indian`s
federal "Certificate of
Indian Status"
card number, name, and
Indian band or registry number on the invoice.
Taxable Purchases
Off-Reserve
Goods purchased off-reserve are taxable when they will be used or consumed off-reserve. For example,
Status Indians,
Indian bands and band councils must pay RST on
goods delivered to an off-reserve address. Transient accommodation (i.e., lodging for stays of less than one month), prices of admission over $4.00, telecommunication services, and parking are also taxable when rendered off the
reserve.
Prepared Foods
Status Indians,
Indian bands and band councils must pay RST on purchases of take-out meals and prepared
food products, costing more than $4.00, when these products are picked up by the
Status Indian,
Indian band or band council for consumption on or off the
reserve, or are delivered to an address off the
reserve.
RST does not apply if the prepared
food products are delivered directly to a
Status Indian,
Indian band or band council on the
reserve for consumption on the
reserve.
Alcoholic Beverages
Status Indians,
Indian bands and band councils are required to pay RST on alcoholic beverages purchased off the
reserve, regardless of whether the beverages are consumed off or on the
reserve. Sales of alcoholic beverages are exempt from
RST only when they are
sold on the
reserve to
Status Indians,
Indian bands or band councils for consumption on the
reserve. Sales of alcoholic beverages made on reserves to anyone other than
Status Indians,
Indian bands or band councils are taxable.
Other Persons
Taxable
goods and services acquired on reserves by persons other than
Status Indians,
Indian bands or band councils are subject to Retail Sales
Tax (RST).
Corporations
The
RST exemptions for
Status Indians,
Indian bands and band councils are not available to corporations
owned by
Status Indians,
Indian bands or band councils. Such corporations must pay RST on taxable
goods, taxable services, and
insurance premiums, in the same manner as other corporations.
Vendor Responsibilities
At the time taxable
goods or services are purchased,
Status Indians,
Indian bands and band councils may claim an
exemption from
RST, provided the items will be used on a
reserve.
Exceptions are detailed under Taxable Purchases in this
guide. If a
Status Indian,
Indian band or band council takes the purchases with them, vendors should note the
Status Indian`s
federal "Certificate of
Indian Status"
card number, name, and
Indian band or registry number, and a brief description of the
goods or services
sold, in their records.
Vendors are authorized to accept only the
federal "Certificate of
Indian Status"
card to support the
RST exemption for purchases made by individual
Status Indians.
Indian bands and band councils must provide a valid PEC. A
federal identification
card cannot be used when buying on behalf of the
Indian band or band council.
When
goods are delivered to a
reserve, the
delivery slip or bill of lading should contain enough information (i.e., place of
delivery) to prove that the
RST exemption was valid. These records should be kept for audit purposes.
Businesses situated and operating on a
reserve are required to register with the
Ministry of
Revenue if they sell taxable
goods or provide taxable services. These businesses are required to charge, collect and
remit RST on all taxable sales, unless the purchaser provides a PEC.
Status Indians purchasing taxable
goods from vendors on a
reserve are not required to pay RST, provided the
goods will be used on a
reserve and they show their "Certificate of
Indian Status"
card to the vendor.
Refunds
Status Indians,
Indian bands and band councils, and contractors who believe they have incorrectly
paid RST,
may apply to the Ontario Ministry of Revenue for an RST refund within four years of the date they
paid the
RST by completing a General Application for
Refund of Retail Sales
Tax form.
Canada
