Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.
Excise and GST/HST Rulings Directorate
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX
Case Number: 110304
Attention: XXXXX
February 25, 2009
Subject:
GST/HST Notice 238 - First Nations Having a Self-Government Agreement Ending Indian Act Tax Relief - Determining Tax Relief for Indian Members Who Are Not Citizens (GST/HST Notice 238)
Dear Ms XXXXX:
Thank you for your letter of XXXXX, requesting clarification on the information contained in the GST/HST Notice 238. Specifically, you asked when is a vendor required to request certification from their customers.
The intent of the Notice is two-fold: First, to assist vendors in identifying which First Nations and their Indian members that no longer benefit from tax relief as set out in Technical Information Bulletin GST/HST Administrative Policy - Application of the GST/HST to Indians (TIB B-039R). Generally vendors are required to charge the GST on sales made to the First Nations and their citizens identified in the Appendix to GST/HST Notice 238. Secondly, to provide assurance to vendors who act in good faith and with due diligence that they will not be held liable for the tax when their Indian customers who are members of the First Nations listed in GST/HST Notice 238 provide certification indicating they are entitled to tax relief.
Your concern is that the requirement to request certification under GST/HST Notice 238 is necessary on all sales made to Indian individuals in addition to the existing documentation requirements set out in TIB B-039R.
Pleased be advised that the certification under GST/HST Notice 238 is only required where the Indian purchaser is a member, but not a citizen, of a First Nation that has a final/self government agreement under which tax relief under section 87 of the Indian Act has been extinguished for its citizens only. That is, members of those First Nations who are not citizens retain the exemption provided under section 87 of the Indian Act and, as a consequence, are still entitled to tax relief as set out in TIB B-039R. It is these members who are required to provide to the vendor the certification noted in GST/HST Notice 238.
The presenting of the Certificate of Indian Status Card by members of First Nations that have final/self-government agreements listed in the appendix to the GST/HST Notice 238 does not offer the necessary proof that they are still eligible for tax relief under the Indian Act. Therefore, members of the listed First Nations that are not citizens must provide the additional certification to the vendor in order to get relief of the GST.
It is anticipated that the certification will only be required in a few instances as most members of a self-governing First Nation would have become Citizens in order to benefit from their self-government agreement.
I hope this information clarifies when the additional certification is required.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-952-9264. Should you have additional questions on the interpretation and application of the GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.
Yours truly,
Cindy Christmas
Aboriginal Affairs Unit
Public Service Bodies and Governments Division
Excise and GST/HST Rulings Directorate
UNCLASSIFIED
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