Effective Date: April 1, 2016

Applicable FAM Policies: 730 - Corporate Credit Cards

Applicability: GNWT Departments and Public Agencies

Through the Reciprocal Taxation Agreement (RTA) with the Government of Canada, the Government of the Northwest Territories (GNWT) and related entities are exempt from paying the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) on the purchase of taxable goods and services.

INTERPRETATION

The RTA exempted the GNWT and certain related entities from paying GST/HST in respect of goods or services acquired.

In accordance with the RTA, purchases that require indirect payment to vendors by a third-party are not GST/HST exempt.

Examples of third-party purchases:

• An employee of a department or public agency purchases/directly pays for taxable goods and services in the course of employment-related activities such as accommodation, meals, taxi or car rental expenses, travel-related incidentals, as well as purchases reimbursed out of petty cash. As these goods or services were not acquired under the name of the department/public agency but rather under the name of a third party, i.e. an employee, GST/HST is required to be paid by the purchaser and forms part of the expense to Government/public agency when the employee is reimbursed, if appropriate.
• Professional membership dues that are paid on behalf of employees are considered “third-party” purchases in accordance with the RTA; therefore, the GNWT must pay the GST/HST regardless of the payment method.

Goods and services purchased for the GNWT require the purchaser to provide vendors with a signed GST/HST Exemption Certificate. This can be obtained from the appropriate departmental Visa Coordinator. 

GST/HST (Exemption Form) - GNWT exemption # R107442691

The completed and signed GST/HST Exemption Form must be provided to the vendor at the same time the purchase is made and requires a separate form for each separate purchase. The GST/HST Exemption Form is to be supplied with each card issued. The Form may be sent via email, fax or Canada Post if it is impractical for the purchasing officer to issue it in person, provided the vendor agrees with the arrangement.

Point of sale exemption applies to:

• All Northwest Territories Government Departments and Legislative Assembly
• All Education Authorities
• All Education Councils
• Commission scolaire francophone, Territoires du Nord-Ouest
• Tlîchô Community Services Agency
• NWT Health and Social Services Authority
• Aurora College
• Legal Services Board of the Northwest Territories
• Northwest Territories Business Development and Investment Corporation
• Public Trustee (for the Northwest Territories)
• Public Utilities Board
• Status of Women Council of the Northwest Territories
• Workers’ Safety and Compensation Commission of the Northwest Territories and Nunavut