First Nations Goods and Services Tax

The Canada Revenue Agency (CRA) wants you to be aware of FNGST requirements that apply to you as an Indian 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.


Overview

The First Nations Goods and Services Tax (FNGST) is a tax that may be imposed by a band council or other governing body of a First Nation, listed in Schedule 1 to the First Nations Goods and Services Tax Act, on the lands that it governs. FNGST at 5% applies to most supplies of property and services made on these lands.

The GST, or the federal part of the HST, does not apply to sales on these First Nations lands.

The FNGST has the same basic rules as the GST/HST. The same property and services that are taxable under the GST/HST are taxable under the FNGST. The FNGST does not apply to zero-rated or exempt supplies.

The CRA administers the FNGST for the First Nations.

Who pays the FNGST

Everyone has to pay the FNGST on the sale of property and services made on land where the FNGST applies, except for certain provincial and territorial governments. For more information, see Find out if the GST/HST applies to provincial and territorial governments.

In some cases where you bring property or services onto the land where the FNGST applies, you may need to self-assess the tax. For more information, see Self-assessing the FNGST.

First Nations that impose the FNGST

List of First Nations that impose the FNGST, the lands affected, and the effective date of the tax

The following chart shows the First Nations that impose the FNGST, the lands affected, and the effective date of the tax.

First Nations that impose the FNGST 

First Nation Lands Effective date
Champagne and Aishihik First Nations (Yukon) Settlement Land of the Champagne and Aishihik First Nations under the Champagne and Aishihik First Nations Final Agreement and the Yukon First Nations Land Claims Settlement Act, S.C. 1994, c.34 July 1, 2004
First Nation of Nacho Nyak Dun (Yukon) Settlement Land of the First Nation of Nacho Nyak Dun under the First Nation of Nacho Nyak Dun Final Agreement and the Yukon First Nations Land Claims Settlement Act, S.C. 1994, c.34 July 1, 2004
Little Salmon/Carmacks First Nation (Yukon) Settlement Land of the Little Salmon/Carmacks First Nation under the Little Salmon/Carmacks First Nation Final Agreement and the Yukon First Nations Land Claims Settlement Act, S.C. 1994, c.34 July 1, 2004
Selkirk First Nation (Yukon) Settlement Land of the Selkirk First Nation under the Selkirk First Nation Final Agreement and the Yukon First Nations Land Claims Settlement Act, S.C. 1994, c.34 July 1, 2004
Ta'an Kwäch'än Council (Yukon) Settlement Land of the Ta'an Kwäch'än Council under the Ta'an Kwäch'än Council Final Agreement and the Yukon First Nations Land Claims Settlement Act, S.C. 1994, c.34 July 1, 2004
Teslin Tlingit Council (Yukon) Settlement Land of the Teslin Tlingit Council under the Teslin Tlingit Council Final Agreement and the Yukon First Nations Land Claims Settlement Act, S.C. 1994, c.34 July 1, 2004
Tr'ondëk Hwëch'in First Nation (Yukon) Settlement Land of the Tr'ondëk Hwëch'in under the Tr'ondëk Hwëch'in Final Agreement and the Yukon First Nations Land Claims Settlement Act, S.C. 1994, c.34

July 1, 2004

Vuntut Gwitchin First Nation (Yukon) Settlement Land of the Vuntut Gwitchin First Nation under the Vuntut Gwitchin First Nation Final Agreement and the Yukon First Nations Land Claims Settlement Act, S.C. 1994, c.34

July 1, 2004

Kluane First Nation (Yukon) Settlement Land of the Kluane First Nation under the Kluane First Nation Final Agreement and the Yukon First Nations Land Claims Settlement Act, S.C. 1994, c.34 January 1, 2005
Tlicho (Northwest Territories) Tlicho lands and Tlicho community within the meaning assigned by the Land Claims and Self-Government Agreement among the Tlicho, the Government of the Northwest Territories, and the Government of Canada, signed on August 25, 2003 and approved, given effect and declared valid by the Tlicho Land Claims and Self-Government Act, as that Agreement is amended from time to time. Behchokö (Rae-Edzo), Whati (Lac la Martre), Gamèti (Rae Lakes), Wekweètì (Snare Lake) December 5, 2005
Tsawout First Nation (British Columbia) Each reserve of the Tsawout First Nation that is not shared with another band October 1, 2006
Kwanlin Dun First Nation (Yukon) Settlement Land of the Kwanlin Dun First Nation under the Kwanlin Dun First Nation Final Agreement and the Yukon First Nations Land Claims Settlement Act, S.C. 1994, c.34 August 20, 2007
Inuit (Nunatsiavut Government), within the meaning assigned by the Agreement, as defined in the Labrador Inuit Land Claims Agreement Act, S.C. 2005, c.27 (Newfoundland and Labrador) Labrador Inuit Lands and Inuit Communities, within the meaning assigned by the Agreement, as defined in the Labrador Inuit Land Claims Agreement Act, S.C. 2005, c.27. These lands include Rigolet, Nain, Hopedale, Makkik, and Postville. August 20, 2007
Carcross/Tagish First Nation (Yukon) Settlement Land of the Carcross/Tagish First Nation under the Carcross/Tagish First Nation Final Agreement and the Yukon First Nations Land Claims Settlement Act, S.C. 1994, c.34 December 17, 2007
Akisqnuk First Nation (British Columbia) Reserves of Columbia Lake, other than the reserve designated as St. Mary's No. 1A. January 1, 2008
Lower Kootenay Indian Band (British Columbia) Reserves of Lower Kootenay, other than the reserve designated as St. Mary's No. 1A. January 1, 2008
Shuswap First Nation (British Columbia) Reserve of Shuswap January 1, 2008
St. Mary's Indian Band (British Columbia) Reserves of St. Mary's, other than the reserve designated as St. Mary's No. 1A. January 1, 2008
Tobacco Plains Indian Band (British Columbia) Reserves of Tobacco Plains, other than the reserve designated as St. Mary's No. 1A. January 1, 2008
Nisga'a Nation (British Columbia) Nisga'a Lands, within the meaning assigned by the Nisga'a Final Agreement, as defined in the Nisga'a Final Agreement Act, S.C. 2000, C.7. These lands include New Aiyansh, Gitwinksihlkw, Laxgalts'ap and Gingolx. July 30, 2008
Tseil-Waututh Nation (Burrard)(British Columbia) Reserve of Tseil-Waututh Nation (Burrard) November 27, 2008
Whitecap Dakota First Nation (Saskatchewan) Reserve of Whitecap Dakota First Nation January 2, 2009
Buffalo Point First Nation (Manitoba) Each reserve of the Buffalo Point First Nation that is not shared with another band October 3, 2011
Songhees Nation (British Columbia) Reserves of the Songhees First Nation December 29, 2011
Nekaneet First Nation (Saskatchewan) Each reserve of Nekaneet that is not shared with another band. These lands include the urban reserves in Swift Current and Regina. October 10, 2012
Matsqui First Nation (British Columbia) Each reserve of Matsqui that is not shared with another band May 21, 2013
Kwaw-kwaw-Apilt First Nation (British Columbia) Each reserve of Kwaw-kwaw-Apilt that is not shared with another band

July 31, 2015

Kahkewistahaw First Nation (Saskatchewan) Each reserve of Kahkewistahaw that is not shared with another band. These lands include the urban reserve in Yorkton on which the Painted Hand Casino is located.   December 11, 2015
Déline First Nation (Déline Got’ine Government) (Northwest Territories)

Déline Lands and all lands within the Community of Déline, within the meaning assigned by the Déline Final Self-Government Agreement, as defined in the Déline Final Self-Government Agreement Act, S.C. 2015 c.24

September 1, 2016
Tsawwassen First Nation (British Columbia) Tsawwassen Lands within the meaning assigned by the Agreement, as defined in the Tsawwassen First Nation Final Agreement Act, S.C. 2008, c. 32 May 1, 2017
Cayoose Creek (British Columbia)    Reserves of Cayoose Creek February 13, 2018 
Skowkale First Nation (British Columbia) Each reserve of Skowkale that is not shared with another band January 31, 2020
Toquaht Nation (British Columbia) Maanulth Lands, as defined in the Maanulth First Nations Final Agreement Act, S.C. 2009, c. 18, of the Toquaht Nation February 18, 2020
Ucluelet First Nation also known as the Yuułuʔiłʔatḥ First Nation (British Columbia) Maanulth Lands, as defined in the Maanulth First Nations Final Agreement Act, S.C. 2009, c. 18, of the Yuułuʔiłʔatḥ First Nation March 10, 2020
Uchucklesaht Tribe (British Columbia) Maanulth Lands, as defined in the Maanulth First Nations Final Agreement Act, S.C. 2009, c. 18, of the Uchucklesaht Tribe March 17, 2020
Ka:’yu:’k’t’h’/Che:ktles7et’h’ First Nations (British Columbia) Maanulth Lands, as defined in the Maanulth First Nations Final Agreement Act, S.C. 2009, c. 18, of the Ka:’yu:’k’t’h’/Che:ktles7et’h’ First Nations

March 17, 2020

Huu-ay-aht First Nations (British Columbia) Maanulth Lands, as defined in the Maanulth First Nations Final Agreement Act, S.C. 2009, c. 18, of the Huu-ay-aht First Nations March 27, 2020
Mosquito, Grizzly Bear's Head, Lean Man First Nation (Saskatchewan) Reserves of the Mosquito, Grizzly Bear’s Head, Lean Man First Nation June 23, 2020

Registering for the FNGST

If you make taxable sales on land where the FNGST applies, you have to register for the GST/HST, unless you are a small supplier. The small supplier limit calculation includes your sales made on the land of the First Nation.

If you are registered for GST/HST:

  • you have to charge the FNGST on your taxable sales made on land where the FNGST applies
  • you have to charge the GST/HST on your taxable sales made in the rest of Canada
  • you may be able to claim input tax credits (ITCs) to recover the FNGST on your purchases and expenses made on land where the tax applies (for more information, see Input tax credits)
  • you may be able to claim ITCs to recover the GST/HST you paid on purchases and expenses made in the rest of Canada

If you are not a GST/HST registrant, you do not charge the FNGST to your customers.

For more information, see Register for a GST/HST account.

Charging the FNGST

You charge the FNGST on:

  • property that is sold on land where the FNGST applies
  • property that is delivered to land where the FNGST applies
  • services performed on land where the FNGST applies

You do not charge the tax when certain provincial or territorial governments acquire the property or services. For more information, see Find out if the GST/HST applies to provincial and territorial governments.

The FNGST also applies to leases of most vehicles (other than racing cars) if:

  • the lease period is more than three months
  • the individual paying for the lease usually lives on lands where the FNGST applies when the supply is made (even if the supply is made off of lands where the FNGST applies)

For more information, see GST/HST Technical Information Bulletin B-102, First Nations Goods and Services Tax – Place of Supply.

Example – Property delivered to land where the FNGST applies

An individual lives on the land of a First Nation where the FNGST applies. He orders a bicycle by telephone from a department store catalogue. He asks that the bicycle be delivered to his residence. The bicycle is being delivered to land where the FNGST applies. Therefore, the 5% FNGST applies to the supply. 

Example – Leasing of a vehicle for more than three months

A university student who usually lives on the land of a First Nation where the FNGST applies temporarily lives on a campus that is located off First Nation land. They lease a vehicle for a period of three years and take delivery of this vehicle off of land where the FNGST applies. The FNGST applies to the lease payments because the student is considered to be usually living on the land of a First Nation where the FNGST applies.

Information to include on your receipts or invoices when the FNGST applies

You need to let your customers know the amount of tax payable or paid, or indicate that the tax is included in the price. As the FNGST is seamless with the GST/HST, there is no requirement to specify that it is FNGST and not the GST/HST that applies to their purchases. You can use cash register receipts, invoices, or contracts to inform your customers. You can also post signs at your place of business.

You also need to provide specific information to your customers who are GST/HST registrants claiming ITCs. For more information, see Records you need to support your claim.

Reporting the FNGST, filing your return and paying any amount due

Reporting the FNGST

Report the FNGST at the same time you file your GST/HST return. Combine both your FNGST and GST/HST amounts on your return.

Use one of these forms:

  • Form GST340-2, Goods and Services Tax/Harmonized Sales Tax (GST/HST) Return for Registrants
  • Form GST62, Goods and Services Tax/Harmonized Sales Tax (GST/HST) Return (non-personalized)

You have to file a GST/HST return for each reporting period, even if you have:

  • no business transactions
  • no net tax to remit

Calculating your net tax

For each reporting period:

  • On line 105 (or line 103 if you file a paper return), combine the following amounts:
    • the FNGST on your taxable supplies made on land where the FNGST applies
    • the GST/HST on your taxable supplies made in the rest of Canada
  • On line 108 (or line 106 if you file a paper return), combine the following amounts:
    • the FNGST on your eligible expenses on land where the FNGST applies
    • the GST/HST on your eligible expenses in the rest of Canada

The difference between the amounts on line 105 and line 108, including any adjustments, is called your net tax.

Enter your net tax on line 109. If you file a paper return, enter your net tax on the return portion (Part 2) that you will send to the CRA. For more information on the net tax calculation, see Complete and file a return – Calculate the net tax.

Filing your GST/HST return

You can file your GST/HST return online.

You can also file:

  • in person at most financial institutions
  • by sending your paper return (GST34-2 or GST62) to the address on the return

For more information, see Complete and file a GST/HST return – When to file.

Paying an amount due

If your net tax (line 109 of your GST/HST return) for a reporting period is a positive amount, you have to make a payment. In most cases, your payment is due at the same time as your return. For more information, see Remit (pay) the tax you collected – When to remit (pay).

If you have a GST/HST refund

If your net tax (line 109 of your GST/HST return) for a reporting period is a negative amount, you can claim a refund.

You can have your refund deposited directly into your bank account at a financial institution. To sign up for direct deposit, go to My Business Account or Represent a Client.

Self-assessing the FNGST

When you bring property or services onto land where the FNGST applies, you may have to self-assess that tax if you did not pay GST/HST on your original purchase of the property or services. For more information, see Information on the tax exemption under section 87 of the Indian Act.

Non-registrants

As an Indian or an Indian band that is not a GST/HST registrant, you may have to self-assess (report and pay) the FNGST in some of the following situations:

You are not a GST/HST registrant
Situation Requirements Fulfilling your requirements

You brought property from a place in Canada onto land where the FNGST applies.

You did not pay the GST/HST.

You have to report and pay the FNGST.

File Form GST531, Return for Self-Assessment of the First Nations Goods and Services Tax (FNGST).

Send the form and payment no later than one month after the month in which the property is brought onto land where the FNGST applies.

You imported services or intangible personal property from outside Canada.

You will consume, use, or supply the imported taxable supply on land where the FNGST applies.

You have to report and pay the tax on imported services or intangible personal property.

File Form GST59, GST/HST Return for Imported Taxable Supplies, Qualifying Consideration, and Internal and External Charges.

Send the form and payment no later than one month after the month in which the amount for the services or intangible personal property was paid or became payable.

If you are not a GST/HST registrant and you imported property from outside Canada, you do not have to report and pay the FNGST because the GST/HST is collected at the border when the property is imported. This means that you do not have to self-assess the FNGST.

GST/HST registrants

As an Indian or an Indian band, you may have to self-assess (report and pay) FNGST in some of the following situations:

You are a GST/HST registrants
Situation Requirements Fulfilling your requirements

You brought property from a place in Canada onto land where the FNGST applies.

You will consume, use, or supply the property more than 50% in commercial activities.

You did not pay the GST/HST.

You have to report and pay the FNGST.

 

Report the tax in the reporting period when the property is brought onto land where the FNGST applies.

Enter this amount on line 405 of your GST/HST return.

You may be able to claim an ITC for the tax you self-assess on the property.

You brought property from a place in Canada onto land where the FNGST applies.

You will consume, use, or supply the property 50% or less in commercial activities.

You did not pay the GST/HST.

You have to report and pay the FNGST.

File Form GST531, Return for Self-Assessment of the First Nations Goods and Services Tax (FNGST).

Send the form and payment no later than one month after the month in which the property are brought onto land where the FNGST applies.

You bought intangible personal property or services outside Canada.

You have to report and pay the FNGST.

 

Report the tax in the reporting period in which the amount for the service or intangible personal property was paid or became payable.

Enter this amount on line 405 of your GST/HST return.

You may be able to claim an ITC for the tax you self-assess on the property.

If you are a GST/HST registrant who brought property that you imported from outside Canada onto land where the FNGST applies or you bought intangible personal property or services to use 90% or more in your commercial activities onto land where the FNGST applies, you do not have to report and pay the FNGST since the GST/HST is collected at the border when the property is imported. This means that you do not have to self-assess the FNGST.

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