7. What tax exemptions in the goods and services markets, outside of the normal “native status” exemptions, are applicable to me as a sole proprietor?

According to Technical Information Bulletin (August 2006) B-039R3:  Businesses owned by Indians, Indian bands or band-empowered entities whose annual taxable sales of property and services are more than $30,000 are required to register for the GST/HST.  Like other businesses, once registered, they must collect and remit the tax on their sales of property and services (unless the sales are made to Indians, Indian bands or band-empowered entities under conditions where the GST/HST is not payable). They may also claim input tax credits for the GST/HST paid on purchases made in the course of their commercial activities.

Businesses, whether owned by Indians or non-Indians, selling property or services to Indians must include their taxable sales to Indians, even if no GST/HST was charged, in their calculation of annual revenue to determine if they must register for the GST/HST. Sales of taxable property and services that are relieved from tax when supplied to Indians, Indian bands or band-empowered entities under the circumstances described in this bulletin are still considered to be taxable sales for determining registration requirements.

Sole proprietorships and partnerships owned by individual Indians receive the same treatment on purchases as individual Indians.  If they are registered for the GST/HST, they, like all other businesses, must collect the GST/HST on their sales of taxable property and services (unless they are made to Indians, Indian bands or band-empowered entities under the conditions in which the GST/HST is not payable) and they can recover any GST/HST paid on their eligible off-reserve business purchases by claiming input tax credits.

So apart from “native status” exemptions a “native” business will be treated like any other business for the purpose of goods and services taxes.

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