On this page

• Overview
• Paying the FNGST
• Self-assessing the FNGST
• Registering for the GST/HST
• Charging the FNGST
• Reporting the FNGST

Overview

The First Nations Goods and Services Tax (FNGST) is a tax imposed by a band council or other governing body of a First Nation on their lands. The Canada Revenue Agency (CRA) administers the FNGST for the First Nations that impose the FNGST.

The FNGST applies at the rate of 5% to taxable sales of goods made on the lands of the First Nations that impose the FNGST. The FNGST also applies at the rate of 5% to taxable sales of services made on these lands.

The FNGST has the same basic rules as the GST/HST. That is, the same goods 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. When the FNGST applies, the GST or the federal part of the HST does not apply.

Paying the FNGST

Everyone has to pay the FNGST on their purchases of taxable goods and services made on lands where the FNGST applies, including individuals registered under the Indian Act, Indian bands, and band-empowered entities.

Certain provincial and territorial governments do not pay the FNGST. For more information, go to GST/HST information for governments and diplomats.

First Nations that impose the FNGST

Self-assessing the FNGST

In general, the self-assessment rules for GST/HST can be used to determine if you should self-assess (report and pay) the FNGST. When interpreting these rules, references to "in a participating province" should be read as "on lands where the FNGST applies" and "provincial part of the HST" should be read as "FNGST".

The requirements to self-assess the FNGST when you import a good, service, or intangible personal property from outside Canada to lands where the FNGST applies are generally the same as the requirement to self-assess the GST or the federal part of the HST. For more information, go to GST/HST on imports and exports.

You may have to self-assess the FNGST when:

• You purchased a good in Canada that you brought onto lands where the FNGST applies
• You imported a good, service, or intangible personal property from outside Canada onto lands where the FNGST applies

You do not self-assess the FNGST when:

• You paid the GST or the federal part of the HST on your purchase of a good
• You paid the GST or the federal part of the HST upon importation
• The purchase is zero-rated (taxable at the rate of 0%) or the importation is not subject to the GST or the federal part of the HST

Examples – Self assessing the FNGST

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 goods and services that are subject to the FNGST.

If you are a GST/HST registrant, the FNGST applies to your taxable sales of goods and services made on lands where the FNGST applies. The GST/HST applies to your other taxable sales (other than zero-rated) of goods and services.

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

Learn more:

• When to register for and start charging the GST/HST
• Register for a GST/HST account
• Input tax credits

Charging the FNGST

In general, the place-of-supply rules for GST/HST determine whether a sale is made on lands where the FNGST applies. When interpreting these rules, the phrase "in a participating province" should be read as "on lands where the FNGST applies" and "provincial part of the HST" should be read as "FNGST".

If you are a GST/HST registrant, you have to charge the FNGST on your taxable sales (other than zero-rated) including:

• Goods that are sold on lands where the FNGST applies
• Goods that are delivered (by you or your agent) on lands where the FNGST applies
• Intangible personal property sold on lands where the FNGST applies
• Services performed on lands where the FNGST applies

You do not charge the FNGST when certain provincial or territorial governments acquire the goods or services. For more information, go to How the GST/HST applies to supplies made to governments.

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

The FNGST also applies to leases of most vehicles (other than racing cars) if both of the following statements are true:

• The lease period is more than three months
• The individual who leases the vehicle usually lives on lands where the FNGST applies when the supply is made (even if the supply is made off the lands where the FNGST applies)

For more information, refer to:

• GST/HST Technical Information Bulletin B-102, First Nations Goods and Services Tax – Place of Supply
• The place-of-supply rules described in Chapter 3 of the GST/HST Memoranda Series

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

You need to let your customers know if tax applies to their purchases and at which rate. As the FNGST is seamless with the GST/HST, there is no requirement to change your cash registers or invoicing system 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 or post signs at your place of business to inform your customers whether tax is included in the price or is added separately.

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 make taxable supplies. They need this information to support their claims for input tax credits or rebates for the FNGST or the GST/HST you charged.

Learn more: Input tax credits – Records you need to support your claim

Reporting the FNGST

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

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 the following forms:

• Form GST34-2, 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)

Calculating your net tax

For each reporting period:

• On line 105 (or line 103 if you file electronically using GST/HST NETFILE or if you file a paper return), combine the following amounts:
  • the FNGST on your taxable supplies made on lands 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 electronically using GST/HST NETFILE or if you file a paper return), combine the following amounts:
  • the FNGST on your eligible expenses on lands 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.

Learn more about the net tax calculation: Calculate the net GST/HST

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: When your final balance is due – Remit (pay) the GST/HST you collected

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. Sign up for direct deposit through your CRA account. To sign in to or register for a CRA account, go to Sign in to your CRA account.