The Canada Revenue Agency has revised guides RC4022, “General Information for GST/HST Registrants” and RC4033, “General Application for GST/HST Rebates”, along with form GST189, “General Application for Rebate of GST/HST” to reflect the point-of-sale rebate available to Ontario First Nations on the provincial (8%) component of HST, effective September 1, 2010. This rebate is available to Indians, Indian bands and councils of an Indian band for purchases of qualifying property and services made off-reserve in Ontario.
As previously announced, where a GST/HST registrant supplier credits an amount for the Ontario First Nations point-of-sale relief, the registrant will be required to include the following on its GST/HST return:
- the amount of HST collectible at the full 13% on line 105, Total GST/HST and adjustments (line 103 for non-electronic returns); and
- the total amount credited at the point-of-sale on line 111, Rebates.
In addition, GST/HST registrants providing the point-of-sale rebate on sales to status Indians will be required to complete form GST189. In Part B of the form, a new reason code has been added to the form, “Reason code 23 – Ontario First Nations point-of-sale relief (credited by a supplier)”, which registrants should use when claiming this rebate. Furthermore, registrants must complete Section II of Part C and indicate the reporting period in which the amounts credited at the point-of-sale have been included on line 111 of the GST/HST return.