THUNDER BAY, ON --- June 17, 2010 --- "I am thrilled and our people will be relieved that the point of sale exemption for First Nations will be continued within the HST framework. First Nations have worked tirelessly with Ontario and the federal government to make this a reality. The ability to achieve this reflects the great potential of the government-to-government relationship between Ontario and First Nations." – Angus Toulouse, Regional Chief
Under the 13% HST, purchases by Status Indians are exempt when purchased on or delivered to a reserve by a vendor or its agent. Ontario's treatment will extend this exemption 8% to eligible goods and select services purchased off-reserve — the same system that exists right now under the RST.
Ontario will continue to provide a provincial 8% exemption for First Nations under the 13% Harmonized Sales Tax (HST). Effective September 1, 2010, Status Indians will be exempt from paying the provincial portion of the HST on eligible purchases off-reserve.
The Ontario government and First Nations leaders have been working together to maintain the point of sale exemption. In June 2010, all provincial parties supported a motion in the Ontario legislature calling on the federal government to maintain the current point of sale exemption.
The exemption will come into place on September 1, 2010. In the interim, from July 1 to August 31, First Nations can receive refunds by submitting receipts to the Ministry of Revenue.