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Tobacco and Fuel Tax Exemption Simplification Project

Last updated on October 25, 2024

The B.C. Ministry of Finance has developed the Tobacco and Fuel Tax Exemption Simplification (TAFT) system, a modern electronic system that replaces the current paper-based process for tax-exempt sales of tobacco and fuel made on First Nations land in B.C.

The TAFT system:

  • Improves the service experience for First Nations customers when making tax-exempt tobacco or fuel purchases

  • Streamlines the process for retailers by eliminating the paper-based documentation process 

  • Delivers real-time electronic verification of eligibility for tax-exempt tobacco and fuel purchases

  • Makes record keeping easier for retailers

On this page

About the TAFT system

Retailers use a dedicated point of sale (POS) system running on a government-provided tablet to electronically verify the eligibility of tax-exempt purchasers and document tax-exempt tobacco and fuel sales in real-time. A web-based application that can run on existing hardware (i.e., desktop computers, laptops) is also available. 

The TAFT system needs internet access but can record purchases made during offline periods and provide updates once connectivity is regained.

There is no cost to set up the system or for ongoing access or technical support for the system.

The new electronic system is being offered to retailers to use on a voluntary basis.

If you’d like to participate in the project, see volunteer opportunities.

Project updates and announcements

Updates to the project are posted here. Read the most recent update below and browse past updates.

To stay informed on the project, subscribe to receive updates.

April 2023

The TAFT system is now available!

The features of TAFT include:

  • An easy-to-use tax-exempt gas calculator
  • Up-front verification of purchaser eligibility 
  • Electronic filing – eliminating the need for paper-based documentation and return filing
  • Back-end reports for retailers

On-site set-up and training are available. 

If you would like to use the TAFT system, please contact the Tobacco Tax Section directly at TAFTproject@gov.bc.ca or by phone at 250-387-9115. 

Previous updates and announcements

To view all the past updates, click Expand All below.

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November 2022

The new system is ready for field testing and the project team has been installing iPad tablets at early adopter retailers. Retailer and customer feedback has been positive. 

We have included several features and functions requested through our engagement and feedback sessions. These features include: 

  • An easy-to-use exempt-gas price calculator
  • Up-front verification of purchaser eligibility
  • Back-end reports for retailers
 

May 2022

Development of the new system is on schedule and progress includes:

  • A POS mobile app that runs on an iPad tablet that is ready for field testing
  • Development of electronic return filing for retailers using the TAFT system to replace paper-based filing
 

October 2021

Development of the new system is on schedule. Progress includes:

  • Creating a demo-ready POS mobile app that runs on an iPad tablet
  • Creating a real-time verification adjudication service component
  • Working with existing POS system vendors to ensure they can connect to our verification and documentation system through a modern application programming interface (API)
 

January 2021

We're working with AppsOn Time Technologies Ltd. to begin developing the new electronic system. 

Over the next few months, we'll be conducting workshops to:

  • Better understand how retailers and consumers would use a new electronic system 
  • Give retailers and consumers the opportunity to provide their input for a new electronic system
 

December 2020

AppsOn Time Technologies Ltd. (AOT Technologies) contracted to build the new electronic point of sale verification and documentation system.

 

November 2019

Indigenuity Consulting Group Inc. contracted to provide engagement consulting services.

 

September 2019

Highway Three Solutions Ltd. contracted to provide project director services.

 

Engagement and communication

The B.C. Ministry of Finance is engaging with retailers on First Nations land who sell tax-exempt tobacco and fuel to gather feedback to inform the design of the new electronic system. 

Engagement activities

April 2023

Over the winter, early-adopter retailers provided valuable feedback to the project team.  

The project team will continue to reach out to retailers around the province to demonstrate the TAFT system and discuss how it can simplify the way tax-exempt tobacco and fuel sales are documented.

Previous activities

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November 2022

Throughout the summer and fall, our project team continued to visit retailers around the province, receiving valuable feedback on the new system.  

The team will continue to engage with retailers and plans further outreach in the coming months.

 

May 2022

Our project team has received feedback from over 50 on-reserve retailers. The team was busy as it travelled to all corners of the province to demonstrate the new iPad app and had informative discussions on how to improve documenting tobacco and fuel sales.  

 

October 2021

Over 25 on-reserve retailers have met with our project team for feedback sessions, both through phone calls and in-person store visits. These feedback sessions provided valuable knowledge about on-reserve retailers’ documentation and reporting needs and are informing the design of the system.    

We are planning more feedback sessions to take place later this fall.

 

April 2021

Feedback sessions are happening with on-reserve retailers that volunteered to provide input and feedback into the new electronic system. Our project partners are gathering valuable information that will be used in the system design.

 

November 2019

The Ministry hired Indigenuity Consulting Group Inc. (Indigenuity) to provide First Nations engagement services to support the project.

The engagement included two phases:

  1. The first phase of engagement consisted of an online survey sent to retailers and customers with questions related to:

    • Current practices around tobacco and fuel tax exempt purchases
    • Barriers to, or interest in, a new system

  2. The second phase consisted of phone interviews to collect more in-depth information

A report, Tobacco and Fuel Tax Exemption Study: Retailer Engagement Summary and Analysis (PDF), summarizes the survey results (PDF) from our engagement with retailers. This engagement initiative will inform the design and implementation of a new technology solution.

Communication

To support the engagement, the Ministry is communicating with First Nations chiefs and councils and authorized tax-exempt tobacco and fuel retailers.

Volunteer

We offer free on-site installation and training. 

To sign-up to use the TAFT system, please contact us:

The B.C. Ministry of Finance would like to thank the retailers and consumers across the province that provided their ideas and feedback that helped design the TAFT system. 

Project partners

The B.C. Ministry of Finance partnered with the following companies to help develop the new electronic point of sale verification and documentation system for tax-exempt sales of tobacco and fuel made on:

  • Indigenuity Consulting Group Inc.
  • Highway Three Solutions Ltd.
  • AppsOn Time Technologies Ltd. (AOT Technologies)

Retailers may be contacted by Highway Three Solutions Ltd. or AOT Technologies to discuss the benefits of the TAFT system. 

Stay up to date

Subscribe to receive email notifications when we update our website.

Contact information

Contact us if:

  • You have questions about the project
  • You’re interested in volunteering to use the TAFT system

Email:
TAFTproject@gov.bc.ca

Phone:
Tannis McDow, Manager
Tobacco Tax Section
778-698-9607