Archive for the ‘Taxation’ Category
Tuesday, August 2nd, 2011
First, you must know that as of today’s date (August 2, 2011), this new rule is not official yet and the CRA allows vendors to apply it or not. Once the rule is officially published in the Canadian Gazette, in accordance with the federal regulatory process, it must be followed. Having said that, CRA strongly recommends that you apply this rule immediately as they are 99.9% certain it will be published and become effective July 1, 2010.
The proposed changes will affect the HST charged to a customer under the Place of Supply Rule. To recap these changes as simply as possible, we have condensed them to the following bullets: (more…)
Tags: GST/HST, Place of Supply, Specified Motor Vehicle
Posted in Taxation | 2 Comments »
Thursday, July 14th, 2011
CRA has confirmed that the document, Temporary Confirmation of Registration Document is satisfactory evidence of Status Indian to warrant relief of HST on a vehicle sale to a First Nations purchaser (all other conditions of a First Nations purchase must be met to qualify for HST relief). The document presented to you must be an original to qualify for tax relief. The original document will have a raised seal in the lower right corner. Photocopies are not (more…)
Tags: HST relief, Temporary Confirmation Registration Document
Posted in Taxation | 2 Comments »
Tuesday, March 8th, 2011
IMPORTANT UPDATE!
To update our article published November 9, 2010, please note that the interpretation of CRA Policy#230 has been verified by a GST/HST Rulings Expert in GST/HST Legislation, and that GST/HST exemption rules applicable on an Indian, Indian Band, or Band-Empowered Entity purchase also apply to a First Nations lease. This varies from the information originally published in our November 9, 2010 article wherein we described that Native Indian lessees were required to reside on reserve land in order to qualify for GST/HST exemption on the lease payments. Today’s update confirms this is not the case. To be clear, Native Indians are not required to live on reserve land to qualify for GST/HST exemption on a vehicle lease provided all other exemption requirements have been met.
Tags: CRA, exemption, first nations, GST/HST, lease, lease payments, legislation, qualify, resides, rulings expert
Posted in Taxation, Uncategorized | No Comments »
Friday, December 24th, 2010
U.S. citizens that purchase a vehicle in an HST-participating province in Canada (BC, New Brunswick, Newfoundland and Labrador, Nova Scotia and Ontario) must pay the HST on the purchase price. These purchases are not eligible for the HST rebate (refer to our blog post of August 27, 2010). (more…)
Tags: Canada, HST, HST rebate, purchase, tax, U.S. citizens
Posted in Taxation | No Comments »
Wednesday, December 8th, 2010
If you have a qualifying Native Indian purchase that will be delivered to FNGST land in BC, 5% tax (the federal portion of HST) applies to the purchase.
All Tax Exemption Purchases require (whether they qualify as 100% exempt under section 87 of the Indian Act, or 7% exempt as FNGST Native Indians) :
a/ Vehicle must be delivered to reserve land & details of day, time & location of delivery are documented on Bill of Sale
b/ Copy of front & back of (current) Certificate of Indian Status card(s) kept on file
c/ ICBC registration is in name of Native Indian(s)
d/ Bill of Sale shows Native Indian(s) as purchaser(s)
For those dealerships located in the Lower Mainland area, please note: The Tsawwassen First Nations are subject to GST/HST on or off Tsawwassen lands (more…)
Tags: aboriginal groups, bands, First Nations Goods and Services Tax, FNGST, GST, HST, Indian Act, self-governments
Posted in Acts, Laws & Regulations, Taxation | No Comments »
Wednesday, December 8th, 2010
First Nations with a self-government agreement in place have given up all tax relief under section 87 of the Indian Act. In BC, as of the time of publishing this article, purchases made by the Nisga’a Nation (BC) citizens are subject to 12% HST.
This excerpt is taken from the CRA, GST/HST Notice #238:
“As of June 1, 2008, Nisga’a citizens resident on and off Nisga’a lands, are no longer entitled to tax relief set out in TIB B-039. This includes Nisga’a citizens in the urban locals of Prince Rupert/Port Edwards, Terrace and Greater Vancouver. (more…)
Tags: 12% HST, BC, first nations, Greater Vancouver, Indian Act, Nisga'a citizens, Nisga'a lands, Nisga'a Nation (BC), Port Edwards, Prince Rupert, self-government agreement, tax relief, Terrace
Posted in Acts, Laws & Regulations, Taxation | No Comments »
Tuesday, November 9th, 2010
Off-reserve PURCHASES of property delivered to a reserve:
Delivery Requirements:
If a vehicle is acquired from a vendor that is not located on a reserve, the vehicle must be delivered to a reserve for the purchase to be exempt from the GST/HST. The vehicle must be delivered by either the vendor or an agent of the vendor. (more…)
Tags: delivery requirements, delivery to reserve, documentation requirements, exemptions, HST, Indian, Indian Band, Native Indian leases, Native Indian purchases, Native Indians
Posted in Taxation | 4 Comments »
Tuesday, November 9th, 2010
Effective July 1, 2010, HST now replaces PST and GST in BC, Ontario and Nova Scotia
Pre-July 1, 2010, HST Participating Provinces: New Brunswick, NewFoundland and Labrador
The Basics of PLACE OF SUPPLY RULES
In these provinces, previous rules regarding PST and GST exemptions for “out-of-province” purchases have been replaced with new HST guidelines “Place of Supply Rules”. In simple terms, if a vehicle is purchased by a non-resident of an HST-participating province, they pay HST on the purchase price of the vehicle and claim a rebate back for the provincial-portion when they return home to their province of residence. The purchaser will only pay the GST portion of HST (more…)
Tags: documentation, exemptions, HST, Out-of-Province, Place of Supply Rules
Posted in Taxation | No Comments »
Friday, August 27th, 2010
This form is for the consumer, to claim back the provincial portion of the HST they paid on goods purchased in a participating province (BC, New Brunswick, Newfoundland and Labrador, Nova Scotia and Ontario) and brought into a non-participating province, or into another participating province for which the provincial part of the HST is lower.
Print & keep copies for your customers: Rebate form, GST495 E (10) (more…)
Tags: application, BC, claim back, consumer, eligibility, form, goods, GST495 E (10), HST, New Brunswick, Newfoundland and Labrador, non-participating province, Nova Scotia, Ontario, participating province, provincial portion, rebate form, sole proprietor, vehicle
Posted in Taxation | Comments Off
Monday, August 9th, 2010
The following caption has been published by the CCRA:
“Note: Goods acquired by Indians and Indian bands off a reserve in Ontario without being delivered to a reserve will generally be subject to the HST as of July 1, 2010. However, the Government of Ontario has announced that, effective September 1, 2010, point-of-sale relief equal to the 8% provincial part of the HST will be provided on eligible purchases by qualifying First Nation purchasers. (more…)
Tags: CCRA, first nations, government of ontario, GST, HST, Indian Bands, Indians, interim, july 1, ministry of revenue, Ontario, ontario ministry of revenue, point of sale, receipts
Posted in Taxation | 1 Comment »
