Using the Automated Solution
The automated solution provided for under the Program allows you to check an Indian, council or entity's eligibility for the Program using a point-of-sale (POS) terminal, which includes a keyboard, an optical scanner and a screen and serves as a cash register.
Every time you sell fuel to an Indian, council or entity, you must scan the barcode on the purchaser's Attestation d'inscription (registration card) using the POS terminal's optical scanner. If the purchaser is an Indian, you must also key in his or her Certificate of Indian Status number using the POS terminal's keyboard.
Information on every sale of fuel you make to an Indian, council or entity that is registered for the Program is sent to us electronically from the POS terminal for validation. The terminal then displays whether or not the exemption was granted based on the results of the validation and prints a bill showing the breakdown of the exemption granted or the tax billed.
If you use the automated solution, you may be granted a working capital advance in the form of a fuel tax holiday on the purchase of a certain volume of fuel from your supplier.
To determine whether or not you may be granted a working capital advance, we will review your file. If the advance is granted, we will authorize your supplier not to collect the amount equal to the fuel tax on the purchase of a given volume of fuel. We will notify the supplier of the volume of fuel and the corresponding amount equal to the fuel tax.
The amount of the working capital advance is based on the volume of fuel you are likely to sell to Indians, councils and entities in any given week. The amount is subject to review at any time. We will notify both you and your supplier of any change.
If the required documents are presented at the time of the sale and if, after you have checked the eligibility and validated the documents using the POS terminal, the Indian, council or entity is found to be eligible for the Program, the exemption will be granted. In such case, you must not collect the fuel tax on the sale. If, however, the exemption is denied, you must collect the fuel tax.
In the latter case, the Indian, council or entity can apply for a refund of the fuel tax paid by filing an Application for a Refund of the Fuel Tax Paid by an Indian, a Band Council, a Tribal Council or a Band-Empowered Entity (form CA-90-V). The Indian, council or entity can also contact us to find out why the exemption was denied at the time of the purchase.
If you grant an exemption when, in fact, it should have been denied, you will not be allowed a refund of the amount equal to the tax on the sale.
When you use the automated solution, you do not need to file a paper return to determine the refund equal to the amount of the fuel tax to which you are entitled. Instead, your returns, which cover a one-week period that runs from Monday to the following Sunday, are completed automatically with each sale to an Indian, council or entity that is registered for the Program.