A new bulletin issued by Saskatchewan entitled, “Information Regarding Sales to First Nations Individuals and Organizations”, describes the implications of Saskatchewan Provincial Sales Tax (“PST”) on supplies made to First Nation individuals (“Indians”) and bands (“Indian bands”) in the province. Note that Métis, Inuit, or First Nations people from the United States would not be eligible for the exemption.
The bulletin discusses the PST treatment of a variety of transactions, including:
- sales and leases of goods to Indians, Indian bands and band-empowered entities;
- services provided to Indians, Indian bands and band-empowered entities;
- supply and install contracts on Indian reserves; and
- goods and services supplied to band-empowered entities, tribal councils, Indian businesses and limited partnerships, and urban reserves, under specific circumstances.
Details on the supporting documentation required to be maintained by suppliers on these tax-exempt sales are also discussed in the bulletin.
One item of interest noted is the possibility of the exemption on materials purchased under a construction contract, where the construction is on a reserve, and the Indian customer is considered the consumer of the materials. See the discussion under section D, “Supply and Install Contracts on Indian Reserves” of the bulletin.