Tax and Revenue Administration Alberta Indian Tax Exemption Program Information Circular AITE-5R8

AITE-5R8 / January 2010

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.

ALBERTA INDIAN TAX EXEMPTION PROGRAM INFORMATION CIRCULAR:
TAX RATE CHANGES

This information circular is intended primarily for exempt-sale retailers of tobacco, exempt-sale vendors of fuel, or registered operators under the Tourism Levy Act who sell those products or accommodations exempt from Alberta tax or the tourism levy to eligible Indian consumers.

1. Alberta tax is included in the price the exempt-sale retailer pays when purchasing tobacco or exempt-sale vendor pays when purchasing clear fuel from licensed wholesalers or fuel suppliers. In this document, both an "exempt-sale retailer" and "exempt-sale vendor" are described as a "retailer". When tax rates change, their suppliers inform retailers of changes. Alberta Finance, Tax and Revenue Administration (TRA), also supplies retailers with a new tax rate chart.
   
   
2. When fuel or tobacco tax rates change, the retailer should immediately use the new rate for taxable sales and in providing the Alberta Indian Tax Exemption to eligible Indian consumers. Old inventory does not have to be used up first.
   
   
3. Operators of accommodation located on reserves provided to eligible Indian consumers for their use do not collect the tourism levy when an AITE card or certificate of Indian Status is presented at time of purchase. For more information abotu the tourism levy, see Information Circular TL-1, Overview of the Tourism Levy.
   
   
4. For past and current tobacco and fuel tax, past hotel room tax and current tourism levy rates, see Alberta Current and Historic Tax Rates.