Retail Dealers Situated on a Reserve
Under the fuel tax system, if you are a retail dealer of fuel, you must pay your suppliers, at the time of purchase, an amount equal to the fuel tax. You can recover this amount by collecting fuel tax on the retail sale of this fuel.
However, under the Program for Administering the Fuel Tax Exemption for Indians, if you are situated on a reserve or in an Indian settlement in Québec you are not to collect the fuel tax on sales of fuel to Indians, band councils, tribal councils and band-empowered entities that hold an Attestation d'inscription (registration card).
In this situation, you can claim a refund of the amount of the tax you paid to your suppliers but that you were unable to recover on sales of fuel to holders of an Attestation d'inscription.
Under this Program, you must meet certain obligations when selling fuel to a holder of an Attestation d'inscription. Such obligations include transmitting to us certain information on the sale of fuel and posting the retail sales price of fuel in plain view in your establishment.
To simplify the application of the Program's measures, we have been offering a new automated solution to interested retail dealers since early 2013. The automated solution allows retail dealers to send us information about their sales of fuel to holders of an Attestation d'inscription.
The automated solution also makes it possible for us to issue retail dealers a weekly refund of the amount equal to the fuel tax to which they are entitled.
To use the automated solution, retail dealers must contact our client services. For more information on applying the Program when using the automated solution, see the Guide for Retail Dealers Using the Automated Solution (IN-258.SA-V).
In your establishments, you must post the retail sale price of fuel including the applicable taxes (the fuel tax, GST and QST) and the price without the applicable taxes in plain view, so that purchasers eligible for the exemption can make sure it was granted.
To calculate the retail sale price of the fuel without the applicable taxes, use the following formula: (price per litre with taxes ÷ 1.14975) − fuel tax rate applicable in the region.
This formula will be revised in the event of a change in the QST or GST rate.