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Tax Credits and Exemptions
Status Indians and Indian Bands may be eligible for Credits and Exemptions from the following taxes:
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Under the Indian Act (Canada), Indians and Indian Bands are exempt from provincial sales taxes where the sale takes place on reserve land.
As such, Indians and Indian Bands are exempt from Hotel Room Tax on purchases of accommodation provided wholly on reserve land, as classified under the Indian Act.
Prior to making an exempt sale, you must verify the customer's eligibility by viewing the customer's federal Certificate of Indian Status card. This does not include Métis peoples, Inuit, or Indians from the United States because they do not meet the definition of an Indian under the federal legislation.
Please see Bulletin HRT 004, Hotel Room Tax Exemption for Indians and Indian Bands for more information.
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Under the Indian Act (Canada), Indians and Indian Bands are exempt from provincial sales taxes where the sale takes place on reserve land.
Sales of fuel to native Indians or Indian bands that occur off reserve land are subject to tax unless the fuel is delivered by the seller to reserve land as a condition of the sale. In this case, the seller may apply for a refund of the amount equal to the tax previously paid to the wholesaler on that fuel.
When selling fuel to a person claiming exemption as a native Indian, the retailer is required to verify the customer's eligibility. For each exempt sale, the retailer must record the following information on the sales invoice:
- purchaser's name, band name and number, or registry number shown on the Certificate of Indian Status card
- quantity and type of fuel sold exempt of tax
- reserve location where the fuel was delivered
- statement that the fuel was delivered to the reserve location as a condition of sale
- signature of the purchaser in confirmation of the above information
OR
- for purchases on behalf of an Indian band, the band's name and number as it appears on the authorization letter from the band, the purchaser's name, and the name of the band official who signed the letter
- quantity and type of fuel sold exempt of tax
- reserve location where the fuel was delivered
- statement that the fuel was delivered to the reserve location as a condition of sale
- signature of the purchaser in confirmation of the above information
To apply for a refund of the taxes paid to the wholesaler but not collected on the sale, you need to write to the Director of the Consumer Taxation Branch, enclosing photocopies of all sales invoices for tax-exempt sales. Refunds will be granted only if all required information (as outlined above) appears on the sales invoice.
Please send your request for a refund to:
Consumer Taxation Branch
Attention: Refunds Section
PO BOX 9628 Stn Prov Govt
Victoria BC V8W 9N6
For more information, please see Bulletin MFT 006, Fuel Retail Dealers Located Off Reserve Tax-Exempt Sales of Fuel to Native Indians.
Nisga'a Nation
Qualifying Nisga'a government bodies may apply for a refund of motor fuel tax if the following criteria are met:
- the fuel was purchased or used within British Columbia
- the fuel was not acquired for consumption or use in the course of a business or other activity for profit or gain
- substantially all of the fuel was consumed or used for performing a function of government within Nisga'a lands
To apply for a refund, please fill out form FIN 413 NNMFT, Application for Refund of Motor Fuel Tax Pursuant to the Motor Fuel Tax Act and Nisga'a Nation Taxation Agreement.
In support of your refund application, you must submit bills of sale, invoices or receipts for each purchase, showing:
- name and address of seller
- date of purchase
- number of litres purchased
- amount of B.C. fuel taxes paid
Please send your completed applications forms and supporting documentation to:
Consumer Taxation Branch
Attention: Refunds Section
PO BOX 9628 Stn Prov Govt
Victoria BC V8W 9N6
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Under the Indian Act (Canada), transfers of reserve or surrendered land are exempt from taxation. For more information please see Application of the Act to Status Indians and Indian Bands (PTT 017).
For more information, please see the Property Transfer Tax section of our website.
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Under the Indian Act (Canada), Status Indians and Indian Bands are exempt from PST where the sale takes place on reserve land, or title to the goods takes place only once the goods have been delivered to a reserve location. Leases to Status Indians are exempt where the individual is resident on a reserve.
The item purchased or leased must be for the personal use of the individual or for the use of the band.
Only individuals who qualify as an Indian under the Indian Act (Canada) and hold a "Certificate of Indian Status" card issued by the federal government are eligible for the exemption. This does not include Métis, Inuit, or Indians from the United States.
Please see Bulletin SST 046, Exemption for Indians and Indian Bands, and Bulletin SST 034, Procedures for Making Exempt Sales or Leases to Indians and Indian Bands for more information.
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The Indian Act (Canada) exempts First Nations from provincial taxation on personal property situated on reserve or designated lands. To accommodate
this federal legislation, the province has established a tobacco tax exemption program.
For more information, please see Exempt Sales Made by Retail Dealers (ESRDs) (TTA 001).
To register as an ESRD or find out how to file an ESRD return, please see the Tobacco Tax section of our website. |
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