Frequently Asked Questions about
Status Indians and HST
1. When is a sale or lease of
a motor vehicle to a Status Indian exempt from HST?
Status Indians, with
a Certificate of Indian Status issued by the Indigenous and Northern Affairs Canada,
are exempt from HST where they purchase or lease a vehicle and take delivery of
the vehicle on a Reserve. It does not matter whether they live on the Reserve. So,
vehicles sold or leased to a Status Indian and delivered to the Status Indian on
a Reserve are exempt from the full 13% HST.
Delivery off Reserve
Sales or leases to
Status Indians with delivery off Reserve will be exempt at the point of sale from
the 8% provincial portion of HST, meaning that dealers should charge only 5% GST
if the Status Indian takes delivery off-Reserve.
if a Status Indian purchases parts from a dealer?
The same rules as in Question 1 apply.
Parts sold and delivered to a Status Indian on Reserve are fully exempt from HST.
Parts sold to a Status Indian will be exempt from the
8% provincial portion of HST and subject only to 5% GST.
if a Status Indian has repairs performed at a dealer?
Repairs performed for a Status Indian
at a dealership are subject only to 5% GST.
than a Certificate of Indian Status Card, are any other cards or identification acceptable as proof of Indian Status?
The Indigenous and Northern Affairs Canada issues a Temporary Confirmation of Registration Document to individuals
who have been newly registered as Status Indians.
The document confirms that the individual named on the document is registered as a Status Indian under the Indian Act.
A sample can be viewed
The document must be on Indigenous and Northern Affairs Canada letterhead with a red Canada logo and include a raised seal of the Indian Registrar at the bottom right.
The document is not valid after the expiry date shown.
Dealers should only accept an original document from the individual.... not a photocopy. Dealers should make a copy of the document and the photo ID and keep them on file.
Other non-government cards, such as “Métis” cards, “First Nations”cards “Aboriginal Nation” cards do not entitle the cardholder to any tax exemption.
5. What evidence is acceptable
to show that a Status Indian took delivery on a Reserve?
If audited, you may be asked for documentation
as evidence that the Status Indian took delivery on a Reserve. The UCDA recommends
- Purchase something such as gas on a Reserve and get a dated receipt, showing the date and address
- Take a photo of the vehicle beside a recognizable landmark on the Reserve, such as a store, the band office or Reserve sign
- Log the distance driven between the dealership and the Reserve address
can I confirm that an address is a Reserve address?
You can search Reserves by name on
the internet here or call the UCDA for assistance.
if two people are buying or leasing a vehicle, but only one is a Status Indian?
This often arises because the transaction
involves financing or credit and the Status Indian has to have a co-signor (often
his or her spouse who may not be a Status Indian) sign the contract. If a Status
Indian is a purchaser or lessee on the contract, the transaction is exempt
from HST as long as the vehicle is delivered to the purchaser or lessee on a Reserve.
It doesn’t matter whether the co-signer’s name is shown on the registration or not.
Where a vehicle is registered, showing
both a Status Indian and non-Status person as co-registrants, the transaction is
HST exempt, as long as the Status Indian is also shown as the purchaser on the bill
of sale and takes delivery on Reserve.
8. Do the
registration and delivery exemptions also apply to ATV’s, snowmobiles and non-motorized
vehicles, such as trailers?
Yes, these rules apply to any type
of vehicle, equipment or machinery sold to a Status Indian.