GST/HST and First Nations peoples

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.

Property

Property (not including property that is taxable at 0%)

Generally, Indians do not pay the GST/HST on property bought on a reserve or delivered to a reserve by a vendor or the vendor's agent. However, the GST/HST does apply in some cases. See the chart below for various situations.

How the GST/HST applies to property
Purchaser	Situation	Does the GST/HST apply?
Indian, Indian band, or band-empowered entity	You bought property on a reserve. You presented the proper document to the vendor.	No. Example 1 Example 1 You bought shoes at a store on a reserve. You showed your Indian Status card to the vendor.
Indian, Indian band, or an unincorporated band-empowered entity	You bought property off a reserve. You presented the proper document to the vendor. The vendor or vendor's agent delivered the property to a reserve.	No. Example 2 Example 2 You bought a refrigerator at a store off a reserve. You showed your Indian Status card to the vendor. The vendor delivered it to you on a reserve.
Incorporated band-empowered entity	You bought property off a reserve. The property is for band management activities. You presented the proper document to the vendor. The vendor or vendor's agent delivered the property to a reserve.	No. Example 3 Example 3 You bought office supplies from a store off a reserve. The supplies are for a band management meeting. You provided your original band-empowered entity certificate to the vendor. The vendor delivered the office supplies to a reserve.
Indian	You bought property off a reserve. You used your vehicle to transport the property to a reserve.	Yes. Example 4 Example 4 You bought a computer at a store off a reserve. You used your vehicle to transport the computer to a reserve. There is an exception in Ontario ^{Footnote 1}
Indian	You bought property off a reserve from a vendor who qualifies and operates as a remote store. You presented the proper document to the vendor. You used your vehicle to transport the property to a reserve.	No. Example 5 Example 5 You bought a computer off a reserve at a store that operates as a remote store. You showed your Indian Status card to the vendor. You used your vehicle to transport the computer to a reserve.
Indian, Indian band, or band-empowered entity	You imported property to Canada.	Yes, even if after being imported the property is delivered to a reserve by Canada Post, the vendor, or the vendor's agent. Example 6 Example 6 You bought speakers from a store in the United States. The American vendor arranged for the speakers to be delivered to a reserve in Canada.
Non-Indian	You bought property on a reserve.	Yes. Example 7 Example 7 You bought dishes at a store on a reserve.

Services

Generally, Indians do not pay the GST/HST on services performed entirely on a reserve. However, the GST/HST does apply in some cases. See the chart below for various situations.

**How the GST/HST applies to services**
Purchaser	Situation	Does the GST/HST apply?
Indian	You paid for a service performed entirely on a reserve. You presented the proper document to the vendor.	No. Example 1 Example 1 You paid a professional to paint your house located on a reserve. You showed your Indian Status card to the vendor.
Indian	You paid for a service not entirely performed on a reserve.	Yes, unless the service purchased is related to real property interests on a reserve. Example 2 Example 2 You paid for a computer repair service. The technician performed the diagnosis on a reserve, but the rest of the repair was done at a shop located off a reserve.
Indian	You paid for a service related to real property off a reserve.	Yes. Example 3 Example 3 You paid for a legal service for leasing real property off a reserve.
Indian	You paid for a service performed off a reserve. This service is related to real property interests on a reserve. You presented the proper document to the vendor.	No. Example 4 Example 4 You paid for a legal service supplied by a law firm located off a reserve. The law firm prepared an agreement for you to lease real property located on a reserve.
Indian band or band-empowered entity (incorporated or not incorporated)	You paid for a service related to band management activities on or off a reserve or for a service related to real property on a reserve. You presented the proper document to the vendor.	No, unless the service is related to off-reserve transportation, short-term accommodations, meals, or entertainment. Example 5 Example 5 You paid for accounting services. The services were performed off a reserve and were related to band management activities. You provided your original band-empowered entity certificate to the accountant.
Indian band or band-empowered entity (incorporated or not incorporated)	You paid for a service off a reserve. This service is related to transportation, meals, short-term accommodations, or entertainment.	Yes. However, you may be entitled to recover the GST/HST paid on these services. Example 6 Example 6 An Indian band sent a band official to a week-long band management conference off reserve. The band paid for an off reserve hotel room for the band official for the duration of the conference.
Indian	You paid for a transportation service. Both the origin and the destination are on a reserve. You presented the proper document to the vendor.	No. Example 7 Example 7 You paid for a taxi service that operates within the limits of a reserve. You showed your Indian Status card to the driver.
Indian, Indian band, or band-empowered entity	You paid for a transportation service. The origin, the destination, or both are off a reserve.	Yes. Example 8 Example 8 You paid for a taxi service to take you from a location that is not on a reserve to your house that is located on a reserve.
Non-Indian	You paid for a service on a reserve.	Yes. Example 9 Example 9 You are a non-Indian and you paid for a car repair service performed on a reserve.

GST/HST rebates available

**GST/HST rebates**
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. Learn more: Form GST189: Rebate under reason code 1A.
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 band-empowered entity	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. Learn more: Form GST189: Rebate under reason code 8.
Band-empowered entity	You are a charity, qualifying non-profit organization or selected public service body and you paid GST/HST. Note Band funding of a non-profit organization is considered the same as government funding when determining if the organization is a qualifying non-profit organization.	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 on Form GST189, General Application for GST/HST Rebates.

Learn more: Form GST189, Rebate under reason code 23.

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.

**Documents needed for GST/HST relief**
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 For more information, see Is your status card still valid.	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: that the property is being acquired by an Indian band or an unincorporated band-empowered entity in the case of an incorporated band-empowered entity, that the property is being acquired for band management activities or for real property on a reserve that the service is being acquired for band management activities or for real property on a reserve	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.

Keeping proper records

You must keep proper records when you sell taxable property and services to Indians, Indian bands, and band-empowered entities. You need to ask for the appropriate documents and record certain information, or attach the appropriate documents to your invoices or sales receipts.

Vendor that qualifies as a remote store

The requirement for property to be delivered to a reserve by a vendor or a vendor's agent will be waived if the vendor qualifies as a remote store under one of the three options described in GST/HST Policy Statement P-246, Remote stores and other off-reserve stores with significant sales to Indians, Indian bands and band-empowered entities.

If you choose to operate as a remote store, you must keep proper documents for the sales you made to Indians, Indian bands, and band-empowered entities. Operating as a remote store does not change the reporting period for filing GST/HST returns.

If you qualify and decide to operate as a remote store, each year, you have to let your tax services office know how you are operating.

Documents for self-governing First Nations

You may come across situations where Indians are members of a First Nation having a self-government agreement in place. In these cases, they will need to provide additional documents to determine if the tax relief under the Indian Act still applies. For more information, see GST/HST Notice 238, First Nations with a Self-Government Agreement Ending Indian Act Tax Relief – Determining Tax Relief for Indian Members.

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.

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Date modified:: 2024-07-22

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