Personal Finance & Money Asked by Canadian Luke on February 28, 2021
When going to some stores, such as Walmart, there is a sign at every till: If you are tax exempt, please let us know before the first item is scanned
.
What qualifies as being tax exempt? Can anyone take advantage of this legally? Or are there strict requirements we’d have to prove?
The short answer is you're tax exempt if the tax laws say you are. There are a bunch of specific exemptions based on who you are, what you're buying and why.
Taking British Columbia as an example. One exemption is supplies for business use:
Some exemptions are only available to certain purchasers in certain circumstances. These exemptions include:
- Goods purchased solely for resale or lease
- Software or telecommunication services purchased solely for resale
- Goods or software purchased to be incorporated into goods for resale
You can also claim an exemption if you are buying "adult size" clothing for a child under 15 years.
Farmers are exempt from sales tax on various goods and services.
First Nations individuals are exempt in some circumstances.
And so on and so on.
Correct answer by Nigel Harper on February 28, 2021
Note that folks may also be shopping for supplies for a nonprofit tax-exempt organization. I made such a purchase a few weeks ago.
Whatever the legal basis of the exception, you need to be able to prove to the store that you have it. If you can't, they must collect the tax.
Answered by keshlam on February 28, 2021
The answer is if you are native, you get a native status card and you are exempt from paying taxes. I know this because my husband is native and uses a native status card (and we live in Canada), at Walmart and they need to enter the number before any of your items are scanned so that's why they have the signs up because people will give the card usually after everything has been scanned and that's ok at most stores but Walmart needs to enter it first so that is why they have the signs and that is how people are exempt from paying tax. You have to be native of course to get native status and be exempt from taxes, your not exempt from ALL tax but most of it.
Answered by Brittany Hamblet on February 28, 2021
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