Consumption Tax Rebates – Indians

Rebate of GST and QST paid on goods and services

Under the Indian Act, goods and services purchased by an Indian, a band council, a tribal council or a band-empowered entity are exempt from the GST and QST under certain circumstances. In addition, these individuals or entities can apply for a rebate of GST and QST paid in error where they were entitled to an exemption.

Tax-exempt purchases

Purchases made by an Indian, a band council, a tribal council or a band-empowered entity are exempt from the GST and QST where:

  • property is purchased on a reserve by an Indian, a band council, a tribal council or a band-empowered entity that is not a legal person, or delivered to a reserve by the vendor or the vendor's agent (and, in the case of a band-empowered entity that is a legal person, the property is intended for band management activities);
  • services are provided entirely on a reserve, to an Indian, in respect of property located on the reserve at that time;
  • services are provided entirely on a reserve to an Indian who is on the reserve at that time;
  • transportation services with on-reserve departure and arrival points are provided to an Indian;
  • services are performed in whole or in part off a reserve for an Indian and concern a right to an immovable situated on a reserve; or
  • services are acquired on a reserve or off a reserve (see note below) by a band council, tribal council or band-empowered entity for band management activities or for use with respect to real property situated on the reserve.
Note

Transportation services, short-term accommodation, meals and entertainment are subject to the GST and QST if acquired off a reserve. However, a refund of the taxes may be claimed if the goods or services were acquired by a band council, tribal council or band-empowered entity for band management activities or for use with respect to real property situated on the reserve.

To apply for a rebate of both GST and QST paid in error where you were entitled to an exemption or to claim rebate to which you are entitled, file form FP-189-V, General GST/HST Rebate Application.

To apply for a rebate of QST only that was paid in error where you were entitled to an exemption, file form VD-403-V, General Application for a Québec Sales Tax (QST) Rebate.

Rebate of QST paid on the purchase of a road vehicle

In accordance with certain terms and conditions, the situations in which purchases are tax exempt are the same for all goods, including road vehicles.

Vehicle purchased from a registrant that is not a dealer

The GST and QST do not apply if you purchased a road vehicle from a vendor that is not a dealer, the vendor or the vendor's agent delivered the vehicle to a reserve and you presented proof of your Indian status to the vendor when you purchased the vehicle.

The same goes if the purchase was made by a band council, tribal council or band-empowered entity. However, in such as cases, the vendor must be given a document confirming that the purchaser is in fact a band council, tribal council or band-empowered entity. Where the purchaser is a band-empowered entity that is a legal person, the document must also confirm that the vehicle is for band management activities.

In addition, in order to be exempted from paying the QST to the SAAQ when the vehicle is registered, you must first obtain form VDE-23-V, Certificate of Determination Respecting the QST: Registration of a Road Vehicle, from Revenu Québec by completing form VD-55.1-V, Application for a Certificate of Determination Respecting the QST: Registration of a Road Vehicle, and submitting the required supporting documents.

However, if you are unable to obtain form VDE-23-V before visiting an SAAQ office, you can apply for a rebate of the QST by completing form VD-60.R-V, Application for a QST Rebate for a Road Vehicle, and returning it to Revenu Québec, together with the purchase contract and documents supporting the exemption that would otherwise be applicable. The same procedure applies if you purchase a road vehicle from another individual.

Vehicle purchased from a dealer

The GST and QST do not apply if you purchased a road vehicle from a dealer, the vehicle was delivered to the reserve by the dealer or the dealer's agent and you presented proof of your Indian status.

Likewise, the GST and QST do not apply if the purchase is made by a band council, tribal council or band-empowered entity. However, in such as cases, the dealer must be provided with a document confirming that the purchaser is in fact a band council, tribal council or band-empowered entity. Where the purchaser is a band-empowered entity that is a legal person, the document must also confirm that the vehicle is for band management activities.

In addition, the dealer must complete the Attestation de transaction avec un commerçant (ATAC) form required by the Société de l'assurance automobile du Québec (SAAQ) and write the following note in the appropriate box: “Sale to an Indian – Delivery to a reserve (name of reserve).” Once the ATAC form has been completed, the Indian is exempted from paying the QST when the road vehicle is registered.If, however, the QST was collected by the SAAQ where you were entitled to an exemption, you can apply for a rebate by completing form VD-60.R-V, Application for a QST Rebate for a Road Vehicle, and returning it to Revenu Québec, along with the purchase contract and documents supporting the exemption that would otherwise be applicable.

Fuel tax refund

Under the Program for Administering the Fuel Tax Exemption for Indians, Indians can purchase fuel for their own consumption at service stations situated on Indian reserves or in Indian settlements in Québec without having to pay the fuel tax. Likewise, band councils, tribal councils and band-empowered entities are exempt from the fuel tax under this program.

To apply for a refund of fuel tax paid on fuel purchased for your own use, file form CA-90-V, Application for a Refund of the Fuel Tax Paid by an Indian, a Band Council, a Tribal Council or a Band-Empowered Entity. The fuel must have been purchased at a service station on an Indian reserve or in an Indian settlement. The retailer must hold a registration certificate issued under the Act respecting the Québec sales tax (QST).

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