GST/HST and Indians

The Indian Act provides the structure for the relationship between Indians and the federal government. Under Section 87 of the Indian Act, the personal property of an Indian or Indian band situated on a reserve and their interests in reserve lands are not subject to tax. The application of the GST/HST is consistent with the provisions of that Act.

GST/HST does not apply to goods or services acquired on reserve, or performed totally on the reserve, by Indians (i.e., persons registered under the Indian Act), Indian bands and unincorporated band-empowered entities. GST/HST does not apply to goods purchased off reserve by Indians, Indian bands and unincorporated band-empowered entities if the goods are delivered to a reserve by the seller or his/her agent. Incorporated band empowered entities buying goods for band management activities either on reserve or off reserve (with delivery to the reserve) are also entitled to this treatment.
 
GST/HST does not apply to services acquired by an Indian for real property interests on reserve.

The vendor must maintain appropriate documentation to support that the conditions for tax relief have been met. The Canada Revenue Agency (CRA) will accept, as proof, the "Certificate of Indian Status" card issued by the Department of Indian Affairs and Northern Development which states the individual's nine or ten digit registry number or the band name and family number.

GST/HST does apply to off reserve purchases of transportation, short term accommodation, meals and entertainment. However, a rebate is available to recover this tax if these purchases are made for band management activities or for real property interests on reserve.

Yukon First Nations

The application of the GST/HST to Yukon First Nations and Indians who are members of such First Nations now depends on whether or not a final land claim agreement is in place.

No Tax Relief

Suppliers who are registrants must collect and remit GST/HST on all taxable goods and services acquired by Yukon First Nations with a final agreement in place or Yukon resident Indians who are members of such Yukon First Nations.

Tax Relief Applies

Tax relief is still available to a Yukon band that has no final agreement in place, its band empowered entities and Indians who are members of that band, provided the conditions set out in TIB-039R, GST Administrative Policy - Application of GST to Indians, are met. Tax relief also applies to Indian Bands from outside the Yukon and their Indian members who acquire goods and services in the Yukon as set out in TIB-039R.

First Nation Taxes (FNT)

The First Nations tax (FNT) is a tax on the sale of listed products on some First Nations reserves. Some band councils have passed by-laws that impose FNT on listed products. A listed product refers to alcoholic beverages, fuel, and tobacco products that are specifically mentioned in the band by-law. FNT may be referred to by a different name in the by-law. For example, it might be called a community improvement fee.

The CRA is administering these taxes on behalf of these First Nations.

Quebec:
The GST is administered in Quebec by the ministère du Revenu du Québec (MRQ). Quebec businesses should contact the MRQ by calling toll-free 1-800-567-4692 or by visiting the MRQ Web site.

For more information on the above, please contact a Business Enquiries of the CRA (see Related Reading: Business Window - Supplement or CRA's Web site for a list of addresses).