First Nations tax

Notice to reader

The information on this page replaces the information in Guide RC4072, First Nations Tax (FNT), which has been eliminated.


Find out about the First Nations tax (FNT), who pays, and the listed products

The First Nations tax (FNT) is a tax on the sale of listed products on some First Nations reserves. Some band councils have passed bylaws that impose the FNT on listed products.

The Canada Revenue Agency administers the FNT for the First Nations. When the FNT applies, the GST does not.

The FNT may be referred to by a different name in the bylaws. For example, it might be called a community improvement fee. We do not list these other names but simply refer to them all as the FNT.

A First Nation may have more than one area of reserve land. Where a band council has imposed the FNT, it applies to all reserve lands of that First Nation. When we refer to reserve on this page, we mean a reserve where the FNT applies.

Find out if you have to pay the FNT

On reserves where the FNT applies, everyone has to pay the FNT at the rate of 5% (the same as the GST and the federal part of the HST) on the listed products they buy. The provincial part of the HST would be relieved if the purchaser meets the criteria set out in GST/HST Technical Information Bulletin B-039, GST/HST Administrative Policy – Application of the GST/HST to Indians.

Which listed products are subject to the FNT

A listed product refers to alcoholic beverages, fuel, and tobacco products that are specifically mentioned in the band's bylaws.

Which First Nations imposed the FNT

The following chart provides a list of First Nations whose band councils have passed by-laws to impose the FNT on their reserves for the listed products.

First Nations that have implemented the FNT
First Nation Effective Date for Alcoholic Beverages Effective Date for Fuel Effective Date for 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
Sliammon (British Columbia) FNT does not apply September 1, 1999 September 1, 1999
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
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

Find out if you need to register for a GST/HST account

You have to register for the GST/HST if you make taxable sales listed products sold on a reserve, unless you are a small supplier.

If you are registered for GST/HST:

  • you have to charge the FNT on your taxable sales on land where the FNT applies
  • you have to charge the GST/HST on your taxable sales in the rest of Canada
  • you may be able to claim input tax credits (ITCs) to recover the FNT on your purchases and expenses on land where the FNT applies
  • you may be able to claim ITCs to recover the GST/HST on your purchases and expenses in the rest of Canada

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

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

Find out if you need to charge the FNT

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

As a GST/HST registrant, you have to charge and collect the FNT when you sell listed products on a reserve. If a listed product is bought outside a reserve and then delivered to the reserve by a GST/HST registered vendor, it will also be subject to the FNT.

When the FNT applies to a product, the GST does not. The usual GST/HST rules will continue to apply to supplies of other property and services on the reserve. For more information, see GST/HST and indigenous peoples.

What information to include on your receipts or invoices when the FNT applies

You need to let your customers know if tax is being applied to their purchases. You can use cash register receipts, invoices, or contracts to inform your customers or you can post signs at your place of business.

There is no need to change your cash registers or invoicing systems to add the FNT separately from the GST/HST.

You also need to provide specific information to your customers who are registrants claiming ITCs. For more detailed information about informing your customers, see Records you need to support your claim.

How to report, complete and send the FNT Schedule, and pay any amount due

Report

How to report the FNT

If you sell listed products from a location on a reserve, you are required to file both of the following for each reporting period:

  • GST34, Goods and Services Tax/Harmonized Sales Tax (GST/HST) Return for Registrants (or Form GST62, non-personalized version). For more information on how to complete Form GST34, see Complete a GST/HST Return.
  • GST499, First Nations Tax (FNT) Schedule, for each reporting period (or Form GST499-1, non-personalized version). For more information on how to complete Form GST499, see the next tab "Complete FNT Schedule (GST499)".

If you have to collect the FNT, you have to report it to us 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 collect the FNT, but you do not sell listed products from a location on a reserve, you do not have to complete 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, you can use the same election forms, rebate applications, or other returns that you use for GST/HST purposes.

You, or your authorized representative, have to sign the FNT schedule, and send it with your GST/HST return.

If you file your GST/HST return electronically, send your FNT schedule separately by mail no later than the due date of your electronic return. Even if you are not required to, you can file your GST/HST return online.

Complete FNT Schedule (GST499)

How to complete the FNT Schedule (GST499)

To complete Form GST499 (or GST499-1, non-personalized version), you will need the following amounts for the reporting period for which you are filing:

  • GST/HST and FNT sales
  • GST/HST and FNT charged on your sales
  • GST/HST and FNT paid or payable on your purchases

This form has two charts. Complete 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.

  • Chart 1 - if you sell listed products from reserve locations that are under the authority of one band council (do not complete chart 2)
  • Chart 2 - if you sell listed products from reserve locations that are under the authority of more than one band council

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

For line-by-line instructions, see Form GST499 (or GST499-1).

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, see Calculate the net tax to complete a GST/HST return.

After you have completed your FNT schedule, transfer each amount from column C of your FNT schedule to the appropriate 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 send it with your GST/HST return.

If you file your GST/HST return electronically, send your FNT schedule separately by mail no later than the due date of your electronic return.

Due date

Due date to report the FNT

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

We will send you Form GST499, containing pre-printed information about your account, with your GST/HST return. If you do not receive a personalized form, use the non-personalized version (GST499-1).

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

Amount/Refund due

If you have 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. To learn more, see When to remit the GST/HST.

If you choose to make your payment at your financial institution, you still have to send the FNT schedule to the Surrey Tax Centre.

Use Form RC160, Interim Payments Remittance Voucher to make instalment payments for both the GST/HST and the FNT.

You can calculate your instalment payments and view their related due dates online. To use the Instalment payment calculator service, go to My Business Account.

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 receive your refund deposited directly into your bank account. If you are not already enrolled for direct deposit, you can sign up for it online using My Business Account, or you can fill out Form RC366, Direct Deposit Request for Businesses, and mail it to your tax centre.

Where to Send

Where to send your completed GST/HST return and FNT Schedule

Send your completed GST/HST return and FNT schedule to the following address:

Canada Revenue Agency
Surrey Tax Centre
9755 King George Boulevard
Surrey BC  V3T 5E1

 

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