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Tax Credits and Exemptions

Status Indians and Indian Bands may be eligible for Credits and Exemptions from the following taxes:

 

Motor Fuel Tax and Carbon Tax

Under the Indian Act (Canada), Indians and Indian Bands are exempt from provincial sales taxes where the sale takes place on reserve land.

Sales of fuel to native Indians or Indian bands that occur off reserve land are subject to tax unless the fuel is delivered by the seller to reserve land as a condition of the sale. In this case, the seller may apply for a refund of the amount equal to the tax previously paid to the wholesaler on that fuel.

When selling fuel to a person claiming exemption as a native Indian, the retailer is required to verify the customer's eligibility. For each exempt sale, the retailer must record the following information on the sales invoice:

  • purchaser's name, band name and number, or registry number shown on the Certificate of Indian Status card
  • quantity and type of fuel sold exempt of tax
  • reserve location where the fuel was delivered
  • statement that the fuel was delivered to the reserve location as a condition of sale
  • signature of the purchaser in confirmation of the above information

    OR
  • for purchases on behalf of an Indian band, the band's name and number as it appears on the authorization letter from the band, the purchaser's name, and the name of the band official who signed the letter
  • quantity and type of fuel sold exempt of tax
  • reserve location where the fuel was delivered
  • statement that the fuel was delivered to the reserve location as a condition of sale
  • signature of the purchaser in confirmation of the above information

To apply for a refund of the security refer to page one of Application for Refund of Motor Fuel Tax Deputy Collector or Retail Dealer form (FIN 152).

For more information, please see Bulletin MFT-CT 002, Sales to Status Indians and Indian Bands and the Exempt Fuel Retailer Program.

Nisga'a Nation

Qualifying Nisga'a government bodies may apply for a refund of motor fuel tax if the following criteria are met:

  • the fuel was purchased or used within British Columbia
  • the fuel was not acquired for consumption or use in the course of a business or other activity for profit or gain
  • substantially all of the fuel was consumed or used for performing a function of government within Nisga'a lands

To apply for a refund, please fill out form FIN 413 NNMFT, Application for Refund of Motor Fuel Tax Pursuant to the Motor Fuel Tax Act and Nisga'a Nation Taxation Agreement.

In support of your refund application, you must submit bills of sale, invoices or receipts for each purchase, showing:

  • name and address of seller
  • date of purchase
  • number of litres purchased
  • amount of B.C. fuel taxes paid

Please send your completed applications forms and supporting documentation to:

Consumer Taxation Branch
Attention: Refunds Section
PO BOX 9628 Stn Prov Govt
Victoria BC  V8W 9N6

Property Transfer Tax

Under the Indian Act (Canada), transfers of reserve or surrendered land are exempt from taxation. For more information please see Application of the Act to Status Indians and Indian Bands (PTT 017).

For more information, please see the Property Transfer Tax section of our website.

Tobacco Tax

The Indian Act (Canada) exempts First Nations from provincial taxation on personal property situated on reserve or designated lands. To accommodate
this federal legislation, the province has established a tobacco tax exemption program.

For more information please see Exempt Sales Made by Retail Dealers (ESRDs) (TTA 001).

To register as an ESRD or find out how to file an ESRD return, please see the Tobacco Tax section of our website.

Personal Income Tax

Enhanced training tax credits are provided with respect to First Nations individuals or persons with disabilities. Eligible First Nations individuals are those persons who hold Status Indian cards. Persons with disabilities are those eligible for the disability credit on their income tax return.

To find out more about this tax credit, please see the Personal Income Tax > Tax Credits > Training Tax Credit section of our website.

 

 
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