Revenu Québec has issued this new guide IN-258-V, “Retail Dealer’s Guide – Program for Administering the Fuel Tax Exemption for Indians”, which explains details of the new program for administering the fuel tax exemption for Status Indians, which came into effect on July 1, 2011. In addition, guide IN-222-V, “An Overview of the Fuel Tax Act”, originally issued in April 2011, has been updated to reflect this new program.
Retail fuel dealers in Québec who operate a service station situated on a reserve or in an Indian settlement in Québec are not required to collect fuel tax when selling fuel to qualifying Status Indians, band councils, tribal councils or band-empowered entities, providing certain conditions are met. Retailers must ensure the purchaser is eligible for the program before giving the tax exemption. The Attestation d’inscription, issued by Revenu Québec, confirms that the holder is registered for the program. The card contains: the Attestation d’inscription number; the holder’s name; and the reference number. In addition, the card lists the conditions that must be met to benefit from the program, which differ for individual Indians from those of a band council.
Retail dealers may apply for a refund of the amount equal to the fuel tax paid to their supplier for the portion of fuel sold to Status Indians using form CAZ-1020-V, Monthly Return for Retail Dealers Situated on Indian Reserves. In addition, retail dealers must file monthly reports of their fuel purchases and sales using form CAZ-1020.A, Registre des ventes au détail effectuées aux Indiens (an English version of the form, CAZ-1020.A-T, is provided for illustration purposes only). In some situations, retail dealers situated on Indian reserves may have computer systems that allow them to record most of the information that is required to be entered on form CAZ-1020.A. In such cases, the retailer may provide the information from their computer system, along with their monthly return, as outlined in notice PZ-938-V, Notice to Retail Dealers Situated on Indian Reserves. In circumstances where the system does not allow the retailer to record registration card numbers, dealers may write these numbers on the document by hand, ensuring the number corresponds to the appropriate transaction.
If a wholesale dealer becomes a designated supplier of a retail dealer operating a service station situated on an Indian reserve or an Indian settlement, the wholesale dealer is not required to collect fuel tax on a percentage of sales made to that retail dealer. A retail dealer may only have one designated supplier at a time. To elect or change a designated supplier, form CA-1010-V, Election of a Designated Supplier must be filed with Revenu Québec. The percentage is determined by Revenu Québec, based on the quantity of fuel that the retail dealer is projected to sell to Status Indians.
Please see guide IN-258-V for further details on the administration of the fuel tax exemption program.