Alberta Indian Tax Exemption (AITE)

Important notices

Postal strike and TRA requirements

Regardless of a postal delay, taxpayers and other entities required to make filings and payments with Tax and Revenue Administration (TRA) are still responsible to ensure those obligations are met. All applicable penalties and interest will continue to apply.

For more information about your obligations when a mail disruption occurs including electronic filing and payments, refunds, mail, and courier options, read: Special Notice Vol.8 No.7 – Mail Disruption Contingency Plan for all Programs

Notice about terms on this page

The Government of Alberta recognizes that many First Nations people and communities in the province prefer not to describe themselves as Indians/Indian bands. These terms have been used where necessary to reflect their legal meaning in the federal Indian Act.

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

Step 1. Before applying

Complete the following forms and print a copy of each:

• Contact a certified software vendor from the Vendors 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 Alberta.ca Account

Continue to Alberta.ca Account

• Create a basic account.

Step 3. Sign in and select Program Registration

• Sign in using your Alberta.ca Account username and password. Once you sign in, you will be redirected to TRACS.
• Select Program Registration.
• Select ‘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) by GoA 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 signed Agreement and the completed Application for Electronic Payment (ADMINSA12554) 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 for AITE retailer refund

Point of Sale System (POSS)

On a daily basis, TRA receives the details of the retailer’s tobacco 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).

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

Contact TRA for direct deposit information and instructions.

How to pay

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

Maintain your account in TRACS

Tax and Revenue Administration (TRA) is no longer processing 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
• request for waiver of penalties and interest

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 (excluding Corporate Income Tax) Form (AT4931).
• See tip sheet: Representatives – How to Access TRACS

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 Monday, April 1, 2024
• Current and historical tax and levy rates and prescribed interest rates

Inventory declaration

Register and submit in TRACS

When fuel tax rates change, fuel sellers (for example, retailers, wholesalers) must file an inventory declaration through TRA Client Self-Service (TRACS). To file an inventory declaration, fuel sellers must be registered with TRA under the fuel tax program.

For instructions on how to register and file, see:

• Fuel Tax Inventory Declaration Registration Guide – August 2024
• Fuel Tax Inventory Declaration Guide – March 2024

Due dates

When a fuel tax rate increases, an inventory declaration must be filed and tax owing on the respective fuel must be remitted within 30 days following the day of the rate change.

When a fuel tax rate decreases, fuel sellers may apply for a refund of the applicable tax paid by submitting an inventory declaration within one year following the day of the rate change. Visit ‘Set up direct deposit.’

Publications, forms, videos

Legislation

• Fuel Tax Act and Regulations
• Tobacco Tax Act and Regulations

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Contact

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: [email protected]