Consumer GST & PST

Retail Sales Tax Exemptions

There are two categories of customers that would qualify for a retail sales tax exemption. They are non-residents, and Indians and Indian Bands. The details for each are listed below.

  1. Sales to non-residents – PST does not apply on vehicles purchased for out-of-province use by non-residents of Manitoba. The dealer must:
    1. Either deliver or ship the vehicle outside the province, by common carrier.
    2. Or can deliver the vehicle in Manitoba by issuing an interim registration permit. The permit number must be recorded on the sale invoice.
    3. Or can deliver the vehicle in Manitoba by recording the purchasers home province validated license plate number on the sale invoice.
  2. Sales to Indians and Indian Bands – Indians and Indian Bands may purchase vehicles PST-exempt provided:
    1. The title to the vehicle is transferred on a reserve;
    2. And the purchase documents are signed on a reserve,
    3. And the purchaser takes possession of the motor vehicle on a reserve (the dealer delivers the vehicle or ships it by common carrier F.O.B to the reserve.)
    4. To qualify for exemption on a lease the Indian must reside on a reserve, in addition to the above conditions.

PLEASE NOTE: Corporations held by Indians or Indian Bands do not qualify for the PST exemption available to Indians.

GST on Sales to Native Canadians

Requirements:

  1. Customer must be a Status Indian, but is NOT required to reside on a reserve. The rules are the same whether the customer is purchasing or leasing the vehicle.
  2. Legal transfer of ownership must be completed on a reserve.
  3. Native must produce treaty number.
  4. Vendor must maintain proof that delivery was made to a reserve. Suggestions for proof of delivery to reserve and proof of Status of Indian:
    1. Photocopy his/her picture ID with treaty number.
    2. Have picture taken of person delivering the vehicle and native purchasing the vehicle in front of the band office on the reserve.
    3. Purchase $5.00 worth of gas at closest station to the reserve. Even better if you can purchase gas on the reserve; no tax to pay.
    4. Signature of the purchaser.

GST: Registrant vs. Non-Registrant

GST Registrant
Vehicle purchased for: $20,000.00
Trade in: $10,000.00
Dealership charges GST, paid on full amount (6% of $20,000): $1,200.00
Registrant claims 6% GST on the net amount back from Revenue Canada (6% of $10,000): $600.00
PST is charged on net difference (7% of $10,000): $700.00
Non-Registrant
Vehicle Purchased for: $20,000.00
Trade in: $10,000.00
GST is paid on net difference (6% of $10,000): $600.00
PST is charged on net difference (7% of 10,000): $700.00