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 Status Indians and Indian Bands. The details for each are listed below.
- Sales to non-residents – PST does not apply on vehicles purchased for out-of-province use by non-residents of Manitoba. The dealer must:
- Either deliver or ship the vehicle outside the province, by common carrier.
- Or can deliver the vehicle in Manitoba by issuing an interim registration permit. The permit number must be recorded on the sale invoice.
- Or can deliver the vehicle in Manitoba by recording the purchasers home province validated license plate number on the sale invoice.
- Sales to Status Indians and Indian Bands – Indians and Indian Bands may purchase vehicles PST-exempt provided:
- The title to the vehicle is transferred on a reserve;
- And the purchase documents are signed on a reserve,
- 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.)
- 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
- 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.
- Legal transfer of ownership must be completed on a reserve.
- Native must produce treaty number.
- Vendor must maintain proof that delivery was made to a reserve. Suggestions for proof of delivery to reserve and proof of Status of Indian:
- Photocopy his/her picture ID with treaty number.
- Have picture taken of person delivering the vehicle and native purchasing the vehicle in front of the band office on the reserve.
- 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.
- Signature of the purchaser.
GST: Registrant vs. Non-Registrant
|Vehicle purchased for:||$20,000.00|
|Dealership charges GST, paid on full amount (5% of $20,000):||$1,000.00|
|Registrant claims 5% GST on the net amount back from Revenue Canada (5% of $10,000):||$500.00|
|PST is charged on net difference (7% of $10,000):||$700.00|
|Vehicle Purchased for:||$20,000.00|
|GST is paid on net difference (5% of $10,000):||$500.00|
|PST is charged on net difference (7% of 10,000):||$800.00|