and Revenue Administration
Tax Exemption Program
Information Circular AITE-1R3
||February 6, 2017
||Alberta Treasury Board and Finance, Tax
and Revenue Administration
|For more information:
AITE-1R3 / June 2006
NOTE: This Information Circular is intended to explain legislation and provide specific information. Every effort has been made to ensure the contents are accurate. However, if a discrepancy should occur in interpretation between this Information Circular and governing legislation, the legislation takes precedence.
The Government of Alberta recognizes that many First Nations people and communities in the province prefer not to describe themselves as Indians/Indian bands. These terms have been used where necessary to reflect their legal meaning in the federal Indian Act.
ALBERTA INDIAN TAX EXEMPTION
PROGRAM INFORMATION CIRCULAR:
INTRODUCTION TO THE AITE SERIES OF INFORMATION CIRCULARS
This series of information circulars is intended for the use of:
- Indians and Indian bands that may be eligible for the AITE;
- retailers who may be eligible to sell tobacco products or fuel exempt from Alberta tax to eligible Indian consumers;
- operators that provide accommodation on Indian reserves to eligible Indian consumers; and
- tobacco wholesalers and fuel suppliers who provide products to registered retailers making tax exempt sales to eligible Indian consumers.
This information circular provides an overview of the AITE program. The topics include:
- Eligible Indian consumers are exempt from payment of Alberta tax on:
- fuel and tobacco products purchased on Indian reserves in Alberta, including fuel delivered onto Indian reserves by bulk fuel dealers; or
- the Alberta tourism levy when accommodation is purchased on a reserve for the use of an eligible Indian consumer.
- An eligible Indian consumer may be one of the following:
- an Indian, as defined by the Indian Act (Canada), who is 16 years of age or older;
- an Indian band, as defined by the Indian Act (Canada), whose reserve is partially or totally located in Alberta; or
- an Indian band whose band office is located in Alberta.
No incorporated entity is eligible for the Alberta Indian tax exemption.
- Under federal law, tobacco products cannot be sold to anyone under 18 years of
age. Therefore, eligible Indian consumers under 18 cannot take advantage of the
exemption from tax on tobacco.
- An eligible Indian consumer must prove eligibility when making tax-exempt purchases. An AITE card, presented at the time of the tax-exempt purchase, shows the retailer that the fuel, tobacco or accommodation may be sold to the cardholder tax-exempt. Tax-exempt purchases of:
- fuel or tobacco can only be made from a retailer located on an Indian reserve and registered with Alberta Finance, Tax and Revenue Administration (TRA) to sell the products tax-exempt;
- fuel delivered to an Indian or Indian band can only be provided by a bulk dealer registered with TRA to sell the product tax-exempt; and
- accommodation can only be obtained tax-exempt if the accommodation is located on a reserve and purchased for the use of an eligible Indian consumer.
- An AITE card can be either a card obtained by an Indian or Indian band from TRA or a card issued by the Treaty 7 Tribal Council. Applications for an AITE card are available from TRA. The Certificate of Indian Status card, issued by Indian and Northern Affairs Canada cannot be used to obtain AITE benefits at this time.
- For more details about rules and procedures to be followed by eligible Indian consumers, see Circular AITE-2, Tax Exempt Purchases Made by Indians and Indian Bands.
Providing the Alberta Indian Tax Exemption
A retailer must be registered with TRA to sell fuel or tobacco products exempt of Alberta tax to eligible Indian consumers. Retailers can be registered under the AITE program only if located on an Indian reserve in Alberta or if the retailer is a bulk fuel dealer or propane distributor and delivers the fuel to an Indian reserve in Alberta.
Each retail location must be registered separately. Applications for registration are available from TRA.
Alberta tax is included in the cost of the fuel or tobacco the registered retailer purchases for resale. At the time of purchase an eligible Indian consumer must present a valid AITE card to the registered retailer as proof of eligibility for a tax exemption. The registered retailer can then sell the fuel or tobacco exempt from Alberta tax.
The registered retailer then applies to TRA for a refund of the Alberta tax the retailer paid on the products sold to the eligible Indian consumer. See Information Circular AITE-3, Providing Exemptions Under the AITE Program for information on registering, the selling process and registered retailers obtaining refunds of Alberta tax.
- All operators of accommodation must be registered with TRA to collect the tourism levy, unless they are not required to be registered or to collect the levy. Operators of accommodation on reserves should refer to the tourism levy information circulars issued by TRA for details concerning registering, collecting the levy and providing the AITE to eligible Indian consumers. The process for providing the AITE is set out in Tourism Levy Information Circular TL-1, Overview of Tourism Levy Act.