Alberta Indian Tax Exemption (AITE) (2024)

Overview

The Alberta Indian Tax Exemption (AITE) program consists of:

• An exemption from taxes and levies for eligible consumers and bands at the time of purchase on:
  • fuel products purchased on reserve in Alberta or delivered to reserve
  • tobacco products purchased on reserve in Alberta
  • accommodation purchased on reserve in Alberta
• A refund of the Alberta fuel tax to fuel sellers when the fuel is sold or delivered to eligible consumers on reserve in Alberta.
• A refund of the Alberta tobacco tax on tobacco products sold by retailers to eligible consumers on reserve in Alberta.
• A refund of the Alberta tourism levy to operators that provide accommodation on reserve to eligible consumers.
• Information for tobacco wholesalers and fuel suppliers that provide products to registered retailers making tax-exempt sales to eligible consumers.

Eligible consumers

You are an eligible consumer, if:

• you are an 'Indian' as defined in the Indian Act (Canada), who is 16 years of age or older
• you are a 'band' as defined in the Indian Act (Canada), whose reserve is partially or totally located in Alberta
• you are a band whose band office is located in Alberta

No incorporated entity is eligible for the AITE program.

Proof of eligibility

Individuals

To receive a tax or levy exemption, eligible individuals must present at the time of purchase either a:

• Certificate of Indian Status (status card) or
• Temporary Confirmation of Registration Document

If you need a new or replacement status card:

• contact your First Nation office or apply online at Canada.ca/indian-status
• get a temporary confirmation of registration by calling Indigenous Services Canada

Bands

Tax and Revenue Administration will provide the band with a letter containing a registration number issued by Alberta. The band must present this letter at the time of purchase.

Get a tax refund

How to get a refund of fuel or tobacco tax or tourism levy

Eligible consumers may apply for a refund when the tax or levy was paid in error. Refund applications for fuel or tobacco tax or tourism levy must be received within 3 years from the end of the year in which the purchase took place.

To apply for a refund of tax or levy paid in error, submit a written request to TRA with the following information:

• when the purchase took place
• the supplier or tourism operator that charged the tax or levy
• the location of the purchase or where the fuel was delivered

Who can provide the exemption

Fuel or tobacco retailers wanting to provide the AITE to eligible consumers must be:

• located on a reserve in Alberta, or
• a fuel seller that delivers fuel to eligible consumers located on reserve in Alberta

Accommodation operators wanting to provide the AITE to eligible consumers must be:

• providing the accommodation on reserve in Alberta, and
• registered with TRA under the Tourism Levy Act. See Tourism Levy for more information on how to register and collect the tourism levy.

Sale of tobacco exempt of tobacco tax

Black stock tobacco is cigarettes, tobacco sticks and fine-cut tobacco that has a federal stamp indicating that duty has been paid, but does not have an Alberta stamp. In Alberta, black stock is sold to eligible consumers by AITE retailers and in duty-free shops.

Registered AITE retailers must:

• purchase black stock tobacco tax included (cigarettes or fine-cut tobacco) from wholesalers with an Alberta tobacco tax licence
• sell black stock to eligible consumers, that present their AITE card at the time of purchase, from a location located on reserve in Alberta
• sell Alberta stamped tobacco product to all other consumers
• apply weekly for a refund for all tax-exempt sales using an approved Point of Sale System (POSS) (AITE Direct)

For more information regarding the sale of tobacco to eligible consumers, see Information Circular AITE 3 – Exemptions Under the AITE Program.

Federal law prohibits the sale of tobacco to anyone under 18 years of age, including individuals with an AITE card.

Sale of fuel exempt of fuel tax

Registered AITE fuel sellers may sell clear gasoline or diesel fuel, and propane for motive purposes, to eligible consumers, exempt from the fuel tax.

All fuel purchased by an AITE fuel seller is purchased with the tax included.

Apply weekly for a refund for all tax exempt sales, using an approved Point of Sale System (POSS) (AITE Direct).

How to register

If you are a bulk fuel dealer located off reserve that delivers fuel directly to consumers located on reserve (e.g., heating fuel), proceed to Step 2 below.

For step-by-step instructions, see:

• Video: How to complete the AITE Retailer Registration
• Instruction Guide: AITE registration instruction guide (PDF, 782 KB)

Step 1: Before applying

Complete the following forms and print a copy of each:

• Contact a certified software vendor from theVendors Offering Secure File Transfer Protocol (SFTP) Service listing. Note the vendor’s contact information as this will be required when completing page 2 of the online registration form.

• Save a copy of the Band Council Resolution to upload. The Band Council Resolution must give the registrant authority to operate on the respective reserve.

Step 2: Create or sign in to your MyAlberta Digital ID account

Continue to MyAlberta Digital ID

• Create a basic account.

Step 3: Sign in and select Online Registration

• Sign in using your MyAlberta Digital Identity username and password. Once you sign in, you will be redirected toTRACS.
• Select Online Registration.
• Select ‘Alberta Indian Tax Exemption (AITE) Retailer’ from the Program Name menu.
• After you submit your registration, you will receive a pending status notification and a reference number. Note this number in case you need to contact TRA about your registration.

Step 4: Review and sign Exempt Sale Retailer Agreement

• TRA will send you a copy of an Exempt Sale Retailer Agreement (the Agreement) byGoA Secure Email.
• Review the conditions outlined in the Agreement.
• An authorized signing representative must sign and date the document in the presence of a witness, who must also sign the Agreement.
• Email your signedAgreement and the completed Application for Direct Deposit (AT4812) (PDF, 174 KB)to TRA.

Step 5: Once approved

• You will be notified by email that your approval letter is available in your TRACS account. A copy of the signed Agreement will be emailed to you.
• Set up your point of sale system (POSS).

Apply forAITE retailer refund

Point of Sale System (POSS)

On a daily basis, TRA receives the details of the retailer’s tobacco and/or fuel sales. The POSS is then updated of cardholder changes and purchases-to-date information about individual cardholders.

Each Sunday, TRA totals the daily information received during the week and creates a claim.

Once the claim is approved, a refund will be generated and will be directly deposited into the retailer’s bank account within a few days.

You must maintain and provide upon request proper records, including purchase invoices, sales invoices, vouchers and other supporting documents for at least 4 years.

Paper claims

Step 1: Complete the refund application

• The AITE retailer or fuel seller fills out an AITE Retailer Refund Application (AT4818) (PDF, 1.4 MB).

Step 2: Submit the refund application

• Submit your completed refund application to TRA.

Step 3: Receive your refund

• After your claim has been assessed you will receive your refund by direct deposit.

Direct deposit

• Complete an Application for Direct Deposit (AT4812) (PDF, 174 KB).
• Submit the form to TRA along with a copy of a “VOID” blank cheque.
• Funds will only be deposited into one bank account.

How to pay

• Visit Making payments for more information
• Related: TRA prescribed interest rates

Maintain your account in TRACS

Tax and Revenue Administration (TRA) is no longerprocessing phone or email requests for basic account information.

Account owners or their representatives can access most of the information related to their account in Tax and Revenue Administration Client Self-Service (TRACS) portal.

TRA Client Self-Service (TRACS) is a secure online system for authorized TRA clients to conveniently conduct business with TRA. You can do the following tasks in TRACS:

• view the status of submitted claims
• submit documents
• view status of prior assessments, financial details and letters of assessment and notices of reassessment (if available)
• access financial information and view account period balances
• update address and contact information
• delegate account access to other employees or authorized individuals
• view reports including cancelled cards, rejected sales and variance report

For more details, instructional videos and to log in to your TRACS account, see TRACS information.

Authorize a representative

An individual with proper authorization for the business may consent to the release of confidential information about account(s) with TRA to a specific firm and/or individual.

An individual with proper authorization for the business includes a(n):

• owner
• partner of a partnership
• corporate director
• trustee of an estate
• individual with delegated authority

Step 1: Fill out the Alberta Consent Form

• Complete the Alberta Consent Form (AT4931) (PDF, 328 KB).
• See tip sheet: Representatives – How to Access TRACS (PDF, 66 KB) – December 2020

Step 2: Submit the consent form

• Submit your completed consent form to TRA.

Step 3: Representative receives PIN (only for TRACS access)

• TRA will review the consent form to ensure it is complete.
• TRA will issue a PIN number to the individual via secure e-mail. TRACS access can only be provided to an individual.

The representative must enter the PIN and account number to access TRACS account. See How to access TRACS for instructions.

Tax and levy rates

• Combined chart: Fuel tax and tobacco tax – effective Saturday, October1, 2022
• Current and historical tax and levy rates and prescribed interest rates

Inventory declaration

January 1, 2023 (Fuel)

As of January 1, 2023, the fuel tax rate will be decreased to $0.00 on diesel and gasoline fuel.

Registered AITE retailers who held inventories of gasoline or diesel fuel that was purchased tax included prior to January 1, 2023, may apply for a refund of $0.045 per litre of clear fuel by completing and submitting aFuel Tax Online Inventory Declaration.

Retailers must maintain records supporting the amounts reported on their inventory declaration.

TRA must receive the inventory declaration form on or before December 31, 2023.

Step 1: Complete your inventory declaration

• Fuel Tax Online Inventory Declaration form (available at 7 am on January 1, 2023)
• See theinstruction guidefor assistance completing the form.
• The physical count should be taken after closing December 31 or before opening January 1.

Step 2: Receive your refund

• Once approved, you will receive your refund by direct deposit.

October 1, 2022 (Fuel)

Effective October 1, 2022, the fuel tax rate will change to 4.5 cents per litre on clear gasoline and clear diesel products. Marked gasoline and marked diesel will remain at 0 cents per litre. For more information, refer to Special Notice Vol. 1 No. 45 – Collection of Alberta Fuel Tax.

Registered AITE retailers who hold inventories of clear gasoline and clear diesel are required to complete the Fuel Tax Online Inventory Declaration by October 31, 2022. Inventories of clear gasoline (including ethanol blended gasoline) and clear diesel (including blended diesel) held as of 12:01 am on October 1, 2022 are subject to a tax rate of 4.5 cents per litre.

Step 1: Complete your inventory declaration

• Fuel Tax Online Inventory Declaration form
• See theinstruction guidefor assistance completing the form.
• The physical count should be taken after closing September 30 or before opening October 1.
• Note the Inventory Account Number from the confirmation pageas this is required with your payment.

Step 2: Remit your payment

• Payment can be made online or by cheque, and must be received by TRA by October 31, 2022.
• If paying online, select Alberta Finance–Fuel Tax Collectors as the payee. The tax account number is the Inventory Account Number from the previous step.
  • A known issue entering an account number with a '3' should be resolved by October 27. Try again after this date or payment can be made by cheque.
• Cheques are payable to the Government of Alberta and sent to:
  Tax and Revenue Administration
  9811 109 Street NW
  Edmonton, AB T5K 2L5

April 1, 2022 (Fuel)

The provincial fuel tax was paused between April 1 and Sept. 30. Registered AITE retailers who held inventories of gasoline or diesel fuel that was purchased tax included prior to April 1, 2022, may apply for a refund of $0.13 per litre of clear fuel and $0.04 per litre of marked fuel by completing and submitting aFuel Tax Online Inventory Declaration.

Retailers must maintain records supporting the amounts reported on their inventory declaration.

TRA must receive the inventory declaration one year from the date of the tax rate change. The Fuel Tax Online Inventory Declaration must be submitted on or before March 31, 2023 for the tax rate change effective April 1, 2022.

Step 1: Complete your inventory declaration

• Fuel Tax Online Inventory Declaration form
• See the instruction guide for assistance completing the form.
• The physical count should be taken after closing March 31 or before opening April 1.

Step 2: Receive your refund

• Once approved, you will receive your refund by direct deposit.

March 1, 2022 (Tobacco)

Budget 2022 was introduced in the Alberta Legislature on February 24, 2022 and includeda tax decrease on smokeless tobacco effective at 12:01 am on March 1, 2022.

For more information, refer toSpecial Notice Vol. 3 No. 18 - Budget 2022 Implementation of New Category and Tax Rate for Smokeless Tobacco(February 24, 2022).

Registered AITE retailers can apply for a refund on the tax differential for smokeless tobacco inventories by completing and submitting a declaration of inventory. The inventory declaration must include all stock, on and off premises, including:

• stock held at a location in Alberta
• dry and damaged stock to be returned to the supplier
• stock in transit from suppliers and invoiced at old rates
• stock invoiced to a customer but still on the property

TRA must receive the inventory declaration form on or before February 28, 2023.

Step 1: Take an inventory of all smokeless tobacco for sale in Alberta

The physical count should be taken after close on February28 or before opening on March1.

Step 2: Complete your inventory declaration form

CompleteAT380 – Tobacco Tax Refund Application – Smokeless Tobacco Inventory Declaration(PDF, 250KB).

Email the completed form to[emailprotected]on or before February 28, 2023.

Step 3: Refunds

Once approved, you will receive your refund by direct deposit.

Publications, forms and videos

Instruction guides

• Fuel Tax Inventory Declaration Instruction Guide– October 2022
• Fuel Tax Inventory Declaration Instruction Guide– April 2022
• AITE Retailer Registration Instruction Guide(PDF, 782 KB) – April 2022

Fact sheets

• Eliminating the AITE Card– May 2021

Information circulars

These documents discuss procedural matters and administrative policies and practices for programs administered byTRA. They are updated as necessary and a revision number assigned.

Cross-program information circulars

• TRA-1R2 –Introduction to Tax and Revenue Administration– December 2021
• TRA-2 – TRA Fairness and Service Pledge– July 2018
• TRA-3 – Alberta Commodity Tax Acts – Voluntary Disclosure– November 2018

AITE information circulars

• AITE-1R6 – Alberta Indian Tax Exemption (AITE) Program– December 2021

Special notices

These documents are used to announce changes to the legislation administered by TRA or changes to administrative policies and practices carried out by TRA. These notices are time-specific, and meant to be transitory in nature. The information may eventually be incorporated into other publications, such as information circulars or web content.

AITE special notices

• Special Notice Vol. 4 No. 19 – Eliminating the AITE Card– May 2021
  • See relatedFact Sheet: Eliminating the AITE Card– May 2021
• Vol. 4 No. 15 – Tobacco Tax Calculations for AITE Exempt Sale Retailers– June 2007
• Vol. 4 No. 14 – Purchase of Tobacco from Licensed Wholesalers– March 2005
• Vol. 4 No. 12 – Sales of Black Stock Tobacco to Ineligible Persons– June 2004

Fuel tax special notices

• Vol. 1 No. 46 – Alberta Fuel Tax Relief Effective January 1, 2023 – November 23, 2022

Tobacco tax special notices

• Vol. 3 No. 18 - Budget 2022 Implementation of New Category and Tax Rate for Smokeless Tobacco– February 2022
• Vol. 3 No. 17– Tobacco Tax Rate Increase– October 2019
• Vol. 3 No. 16 – Reporting for Flavoured Tobacco Products– June 2015

Certified software

• Vendors Offering Secure File Transfer Protocol (SFTP) Service listing

Forms

If you have trouble opening fillable PDF forms,see the form instructions.

• AT4812 – Application for Direct Deposit(PDF, 174 KB)– April 2017
• AT4818 – Alberta Indian Tax Exemption Retailer Refund Application(PDF, 1.4 MB)– October 2016
• AT380 – Tobacco Tax Refund Application – Smokeless Tobacco Inventory Declaration(PDF, 250KB)– February 2022
• AT4762 – Notice of Objection– December 2020
• AT4764 – Request for a Waiver of Penalties and Interest(PDF, 854 KB)– October 2021
• AT4931 – Alberta Consent Form(PDF, 328 KB)– November 2020
  • See tip sheet:Representatives – How to Access TRACS(PDF, 66 KB)– December 2020

Videos

• How to complete the AITE Retailer Registration– updated August2022

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Complete your forms andemail or fax them to:

Email: [emailprotected]
Fax: 780-427-0348

Connect with Tax and Revenue Administration

Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Phone: 780-427-3044
Toll free: 310-0000 before the phone number (in Alberta)
Email: [emailprotected]