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HST Refund for First Nations


Richard Weber on January 19, 2011 in Harmonized Sales Tax (HST)

Similar to the GST rules, HST will not apply to goods acquired on a reserve in Ontario or on goods bought off a reserve but delivered by the vendor to a reserve.

On June 17, 2010 the Ontario government announced that the Retail Sales Tax exemptions for First Nations will continue for qualifying off-reserve property or services under the HST regime. Accordingly these goods will essentially be subject only to the 5% GST.

For off-reserve purchases made during the period July 1, 2010 to August 31, 2010, First Nations were required to pay the full 13% HST at the point of sale. The 8% portion of the HST paid on off-reserve qualifying supplies will be refunded by the Ontario ministry. In order to get the refund an “Application for Ontario HST Refund for First Nation for the period July 1, 2010 and August 31, 2010 inclusive” must be filed with the Ministry together with the original receipts of the purchase and a copy of the Status Indian Card.

Effective September 1, 2010, First Nations are entitled to an exemption of the 8% Ontario component of the HST at the point of sale on qualifying off reserve acquisitions. Vendors will provide a credit (exemption) at the time of sale. First Nations will be required to present a valid Status Indian card, at the time of the purchase. Generally, First Nations purchasers should not be required to take additional steps in order to take advantage of this point-of-sale exemption.

In circumstances where First Nations have paid the 8% component of the HST on purchases on or after September 1, 2010, they may claim a refund by submitting an “Application for Ontario HST Refund for First Nations from on or after September 1, 2010” to the Ontario ministry. Original receipts of the purchase and a copy of the Status Indian card must also be provided.

I hope the above provides more clarification on HST re First Nations. Please feel free to email me at .(JavaScript must be enabled to view this email address) any other questions you may have to this regard.