Ontario has issued Guide 80 which provides further details on the qualifications required for the Ontario First Nations point-of-sale exemption. Effective September 1, 2010, Status Indians, Indian bands and councils of an Indian band may purchase qualifying goods or services off reserve exempt of the 8% Ontario provincial component of the HST. The guide clarifies who is entitled to the point-of-sale exemption as well as the prescribed goods and services that qualify for the exemption when purchased by Ontario First Nations.
The First Nations people eligible for the point-of-sale exemption include:
- Status Indians who are residents of Ontario; or
- Status Indians who are residents of Canada and resident of the Akwesasne reserve; or
- an Ontario Indian band or council of an Indian band of a First Nations reserve including the Akwesasne reserve.
The guide states where goods and services were exempt from RST purchased by a Status Indian prior to July 1, 2010, will generally be eligible for the point-of-sale exemption on the Ontario provincial component of the HST including:
- tangible personal property as well as new and used motor vehicles;
- warranty or maintenance agreements for qualifying tangible personal property;
- services to install, assemble, dismantle, adjust, repair or maintain qualifying tangible personal property; and
- telecommunication services.
Ontario continues to apply RST at a rate of 8% to insurance premiums for risks in Ontario. However, insurance contracts entered into by Status Indians, Indian bands or councils of an Indian band in respect to real property will continue to be exempt of RST located on an Indian reserve.
Purchases made via the internet or through a distribution channel where the presentation of a Certificate of Indian Status card is not possible, will not be eligible for the point-of-sale exemption. The Status Indian may, however, apply for a refund of the provincial component of HST through the Ontario Ministry of Revenue.
A refund application may also be made by Status Indians, Indian bands and councils of an Indian band where the tax was paid in error or where goods were imported into Ontario from outside of Canada or from another participating province, where certain conditions are met. Applications must be submitted within four years from the date the tax was paid for imports into Canada or tax paid in error and within one year from the date the goods were imported for imports from another participating province. It must be noted that refunds of tax paid in error resulting from the misapplication of Ontario HST point-of-sale rebates other than the First Nations exemption must be filed directly with the CRA.