GST/HST and First Nations peoples
On this page
- Paying or charging the GST/HST
- GST/HST rebates available
- Documents you need for GST/HST relief
- GST/HST responsibilities as a vendor
- Other taxes specific to First Nations and Aboriginal Governments
The Canada Revenue Agency wants you to be aware of GST/HST requirements that apply to you as an Indian, an Indian band, or a band-empowered entity under the Indian Act. We recognize that many First Nations people in Canada prefer not to be described as Indians. However, the term Indian is used because it has a legal meaning in the Indian Act.
Paying or charging the GST/HST
In general, everyone has to pay tax in Canada, except when you are an Indian, Indian band, or band-empowered entity and you meet the conditions in Technical Interpretation Bulletin B-039, GST/HST Administrative Policy – Application of the GST/HST to Indians. This policy is consistent with section 87 of the Indian Act under which personal property of an Indian or a Indian band situated on a reserve and their interests in reserves or designated lands qualify for tax relief. Inuit and Métis people are not eligible for this exemption.
To determine if the GST/HST applies on property and services, see the following tabs.
GST/HST rebates available
Purchaser | Situation | Rebate eligibility |
|---|---|---|
| Indian, Indian band, or band-empowered entity | You paid the GST/HST in error. | You may be eligible to claim a general rebate, under Reason code 1A – Amounts paid in error for property or services purchased on or delivered to a reservce. |
| Indian, Indian band, or band-empowered entity | In Ontario, you paid the provincial part of the HST in error because the vendor did not apply the Ontario point-of-sale relief on qualifying property and services. | You may be eligible to claim a rebate for the provincial part of the HST, under Ontario HST Refund for First Nations. |
Indian band or | You paid GST/HST on certain travel expenses you incurred off a reserve (for example, transportation, meeting rooms, short-term accommodations, meals, and entertainment expenses). These expenses are for band management activities or for real property located on a reserve. | You may be eligible to claim a general rebate, under Reason Code 8 – Indian band, tribal council, or band-empowered entity. |
Band-empowered entity | You are a charity, qualifying non-profit organization or selected public service body and you paid GST/HST. | You may be eligible to claim a public service bodies' rebate of a percentage of the GST and the federal part of the HST, on Form GST66, Application for GST/HST Public Service Bodies' Rebate and GST Self-Government Refund. You may also be eligible to claim a public service bodies' rebate of a percentage of the provincial part of the HST under line 306 of Form RC7066-SCH, Provincial Schedule – GST/HST Public Service Bodies' Rebate. |
If you are a GST/HST registrant vendor and you applied a GST/HST relief on goods you sold off a reserve in Ontario, you may be eligible to claim a general rebate under Reason code 23 – Ontario First Nations point-of-sale relief.
Documents you need for GST/HST relief
To be eligible for GST/HST relief, you have to get proof of Indian-status registration with Indigenous Services Canada (ISC). For more information, see Indian Status.
As a vendor, if you do not charge the GST/HST on sales of taxable property and services, you need proof that the purchaser is an Indian, an Indian band, or a band-empowered entity. The chart below shows the different documents you need to ask for and keep in your records.
| Purchaser | Documents and records needed | Information needed when property is delivered to a reserve |
|---|---|---|
| Indian | Status card – You need to record on the invoice or other sales document an Indian’s 10-digit registry number or their band name, which is on the card. Temporary Confirmation of Registration Document (TCRD) – Some individuals who are registered as Indians under the Indian Act will receive this document from ISC. You need to record the individual’s registration number and expiration date as shown on the TCRD to the invoice or other sales document. A photocopy of the TCRD presented at the time of a sale does not qualify as appropriate documentation. Note | The vendor must also keep proof that the property was delivered to a reserve (for example, a waybill, postal receipt, or freight bill). The property must be delivered by either the vendor or the vendor’s agent. For more information, see Purchases of property made off a reserve and delivered to a reserve. |
| Indian band or band-empowered entity | An original certificate stating any of the following information:
| The vendor must also keep proof that the property was delivered to a reserve (for example, a waybill, postal receipt, or freight bill). The property must be delivered by either the vendor or the vendor’s agent. For more information, see Purchases of property made off a reserve and delivered to a reserve. |
GST/HST responsibilities as a vendor
Generally, as a business owner, you have to register for a GST/HST account when revenues from your taxable supplies of property and services total more than $30,000 annually. This includes tax-relieved sales.
After you have registered for the GST/HST, you must collect the GST/HST on your taxable sales of property and services. To determine if GST/HST applies to sales made to Indians, Indian bands, and band-empowered entities, see Paying or charging the GST/HST.
You may also be able to claim input tax credits for the GST/HST paid on purchases related to your commercial activities. For more information see, Input tax credits.
Other taxes specific to First Nations and Aboriginal Governments
Some band councils or other governing bodies of First Nations have passed their own laws imposing:
- the First Nations Goods and Services Tax (FNGST) which replaces the GST or the federal part of the HST
- the First Nations Tax (FNT) on listed products
There are exceptions to the application of the GST/HST to Yukon First Nations. For more information, see GST/HST Notice 143, Application of GST/FNGST to Yukon First Nations and their Members.
Please see website for more information.
GST/HST and First Nations peoples
