Point-of-sale PST exemption in Ontario: What you need to know

Alex Hebert uses his Certificate of Indian Status or Status Card for a purchase. –Photo by Marci Becking

By Alex Hebert and Marci Becking (with files from Kevin Restoule)

STURGEON FALLS – Now that I’m old enough to make more purchases on my own, I’m also starting to use my Status Card more at stores.  I mostly shop for video games since I’m only 13.  But I know that when I grow up, I need to understand what the Status Card means when I give it to the person at the cash.

First, it isn’t ALL the tax that is taken off.  It is only the Provincial Sales Tax (PST) part of the Harmonized Sales Tax (HST).  Some things like books only have the Goods and Services Tax (GST) so I wouldn’t need my Status Cards for books.

Because of an agreement signed in 2010 between the Chiefs of Ontario and the provincial government that recognizes Ontario First Nation entitlement to tax exemption, a Status Card is all I need to buy games and other products without paying the 8% part of the HST.

Recently, I went to Walmart and I saw a sign that said that I have to show my Status Card BEFORE they start scanning the items.  Grandma also told me that if you are using the self-checkout, you can ask the worker to put in the Status Card before you start scanning items.  Good to know!

But what happens when you go to a smaller store that doesn’t know about the Status Card exemption and they say no?

I found out that I can do a few things.  First, I can just leave my stuff at the counter and walk away.  I can then tell on them to the Ministry of Finance hotline 1-866-668-8297.  You need to give the name of the store, store location and phone number.  My mom knows some adults who will call the hotline right while they are in the store!

So why don’t some cashiers give the PST exemption?  Sometimes it’s a training issue and the cashier just might not know.  Sometimes it’s just the store not knowing or understanding that they are strongly encouraged to give the PST exemption.  Sometimes they think that the purchase has to be delivered to a reserve, which is not the case.

Mom says also that, unfortunately, the store doesn’t HAVE to give you the tax exemption, but in the interest of customer service, they should.  First Nations people spend thousands of dollars every year at off-reserve businesses.

If I really want to buy something and they don’t give me the exemption on the spot, I can keep the receipt and mail it to the Ministry of Finance to get the PST back. My mom says you can find some helpful information here: https://www.anishinabek.ca/wp-content/uploads/2019/07/Refund-for-First-Nations.pdf

You can send up to 100 receipts at a time and they can go as far back as four years.

Mom also tells me to never give my address or phone number to the cashier.  All they need is your name, your First Nation and registration number right on the Status Card. They also don’t need to photocopy your Status Card.

What about food?  Take-out food counts as long as it’s a meal over $4.  But you can’t just show your Status Card for that. For this you have to keep the receipt and send it in.  The KFC in Espanola will accept Status Cards, so support the KFC in Espanola when you’re driving to Manitoulin Island!

When I get older and pay for my own telecommunications like my cell phone, home phone, internet or cable, I can tell the company that I have a Status Card and they are supposed to take the PST off my bill.  If for some weird reason they don’t, then just keep your bills and send them in to the Ministry of Finance.

The other thing that should be pointed out, is to support on-reserve businesses whenever possible.  Goods and services delivered to a reserve are exempt from paying the full 13% tax. Same with if you purchase things on-reserve, they are HST exempt.

Things bought online aren’t PST exempt.  There is a website though for getting the exemption, just click here: www.statusexempt.ca. You can read more about the man from Curve Lake First Nation who started this app here: https://www.theglobeandmail.com/business/small-business/startups/article-fintech-startup-looks-to-expedite-tax-free-shopping-online-for-first/

For more information on getting the PST exemption, visit the Anishinabek Nation website: https://www.anishinabek.ca/anishinabek-nation/hst/

Alex Hebert is a 13 year-old citizen of Dokis First Nation and attends White Woods Public School in Sturgeon Falls.  At age seven, he was the designer of the world’s first Treaty of Niagara LEGO wampum belt.  His story is featured in the book “Alex Shares his Wampum Belt”, which is available through the Anishinabek Nation Head Office.