First Nations tax

Terminology from the Indian Act

The term "Indian" is sometimes used because it has legal meaning in the Indian Act.

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Overview

The First Nations tax (FNT) is a tax imposed by a band council or other governing body of a First Nation on their reserves. The CRA administers the FNT for the First Nations that impose the FNT.

The FNT applies at the rate of 5% to sales of listed products made on, or delivered to, all the reserves of the First Nations that impose the FNT. When the FNT applies to a listed product, the GST or the federal part of the HST does not apply.

The FNT may be referred to by a different name, such as a community improvement fee, however, we do not list these other names on this page.

Paying the FNT

Everyone has to pay the FNT on the listed products they buy on, or have delivered to, a reserve where the FNT applies, including individuals registered under the Indian Act, Indian bands and band-empowered entities. This means that the GST/HST relief described in GST/HST Technical Information Bulletin B-039, GST/HST Administrative Policy – Application of the GST/HST to Indians, does not apply to the FNT.

Certain provincial and territorial governments do not pay the FNT. For more information, refer to How the GST/HST applies to provincial and territorial governments.

First Nations that impose the FNT

The following chart shows the First Nations that impose the FNT on the sale of listed products made on, or delivered to, their reserves.

First Nations that impose the FNT
First Nation Effective date – Alcoholic beverages Effective date or period – Fuel Effective date or period – Tobacco products
Westbank (British Columbia) September 1, 1999 September 1, 1999 February 1, 1998
Tk'emlúps te Secwépemc (British Columbia) September 1, 1998 September 1, 1998 September 1, 1998
Tla'amin Nation (formerly known as Sliammon First Nation) (British Columbia) FNT does not apply September 1, 1999 to April 30, 2024 September 1, 1999 to April 30, 2024
Stz'uminus (British Columbia) September 1, 2000 September 1, 2000 September 1, 2000
Adams Lake (British Columbia) May 1, 2001 May 1, 2001 May 1, 2001
Ch'íyáqtel First Nation (formerly known as Tzeachten) (British Columbia) July 1, 2001 July 1, 2001 July 1, 2001
Cowichan (British Columbia) June 1, 2002 June 1, 2002 June 1, 2002
Little Shuswap Lake (British Columbia) May 1, 2006 May 1, 2006 May 1, 2006

Registering for the GST/HST

You have to register for the GST/HST if you are not a small supplier and you make taxable sales, leases or other supplies in Canada (unless your only taxable supplies are of real property sold other than in the course of a business). Taxable sales, for the purpose of calculating the small-supplier threshold, include sales of listed products that are subject to the FNT.

If you are a GST/HST registrant, the FNT applies to your taxable sales of listed products made on, or delivered to, a reserve where the FNT applies. The GST/HST applies to your other taxable sales (other than zero-rated) of property and services.

As a GST/HST registrant, you may recover the FNT and the GST/HST paid or payable on your purchases and expenses related to your commercial activities by claiming input tax credits.

Learn more:

Charging the FNT

If you are a GST/HST registrant:

Learn more: Charge and collect the tax – Which rate to charge.

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

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

You need to let your customers know if tax applies to their purchases and at what rate. You can post signs or use cash register receipts, invoices or contracts to inform your customers whether tax is included in the price or is added separately.

There is no need to change your cash registers or invoicing systems to add the FNT separately from the GST/HST. You also have to give customers who are GST/HST registrants specific information on the invoices, receipts, contracts or other business papers that you use when you supply listed products. They need this information to support their claims for input tax credits or rebates of the FNT or GST/HST you charged.

Learn more: Records you need to support your claim.

Reporting the FNT

If you are a GST/HST registrant and you sell listed products from a reserve where the FNT applies, you are required to file both of the following forms for each reporting period:

For more information on how to fill out Form GST34-2, refer to Instructions for completing a GST/HST Return.

You have to file Form GST499-1 at the same time as you file your GST/HST return. Your GST/HST return will include the combined amounts for both taxes (GST/HST and FNT).

If you are a GST/HST registrant and you (or your agent) deliver listed products to a reserve where the FNT applies, you do not have to fill out the FNT schedule. However, you still have to include the FNT in your GST/HST return, as if it were the GST/HST.

For FNT purposes, use the same election forms, rebate applications or other returns that you use for GST/HST purposes.

New online filing requirements

For reporting periods that begin in 2024, all GST/HST registrants, except for charities and selected listed financial institutions, are required to file returns electronically. The mandatory electronic filing threshold that was in place for GST/HST returns has been removed for reporting periods that begin on or after January 1, 2024, which means that electronic filing is now required for most businesses. If you continue to file a paper return, you will be charged a penalty. Send your FNT schedule separately by mail no later than the due date of your electronic return.

Learn more: File a GST/HST return, rebate or election electronically.

To help GST/HST registrants that file monthly or quarterly returns and that were not previously required to file electronically, the CRA will be waiving penalties for failure to file GST/HST returns electronically for reporting periods beginning on or after January 1, 2024 and before April 1, 2024.

Learn more about the change: Businesses: Are you affected by the change to GST/HST electronic filing requirements?

Filling out and sending the FNT schedule

To fill out Form GST499-1, you will need the following amounts for the reporting period for which you are filing:

This form has two charts. Fill out all lines of Chart 1 and Chart 2, if applicable. Enter "0" if any amounts on these lines are nil or do not apply to you.

You must keep copies of all documents to support your net tax calculations for audit purposes.

For line-by-line instructions, refer to Form GST499-1, First Nations Tax (FNT) Schedule.

If you use a streamlined accounting method such as the quick method to calculate your net tax, contact your tax services office for more information.

For more information on the net tax calculation, refer to Complete and file a return – Calculate the net tax (Methods for calculating your net tax).

After you have filled out your FNT schedule, transfer each amount from the last column of your FNT schedule to the corresponding line on your GST/HST return. For example, transfer line 101C from your FNT schedule to line 101 on your GST/HST return.

After you have copied these amounts, follow the instructions on your GST/HST return for lines 112, 113A, 113B and 113C.

You, or your authorized representative, have to sign the FNT schedule and file it with your GST/HST return. Send your FNT schedule separately by mail no later than the due date of your electronic return.

Filing deadline

The reporting period and the due date for the FNT schedule is the same as for your GST/HST return. You have to file them together.

Learn more: 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.

Learn more: Remit (pay) the tax collected – When to remit (pay).

If you choose to make your payment at your financial institution, you still have to send the FNT schedule separately by mail to the CRA.

To make instalment payments for the GST/HST and the FNT, use Form RC160, Remittance Voucher – Interim Payments.

Learn more: Remit (pay) the GST/HST by instalments

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 account at a financial institution. To sign up for direct deposit, go to Sign in to your CRA account.

Where to send your GST/HST return and FNT schedule

Send your GST/HST return electronically and send your FNT schedule separately by mail no later than the due date of your electronic return to the following address:

Canada Revenue Agency
Prince Edward Island Tax Centre
275 Pope Road
Summerside PE  C1N 6A2

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