GST/HST and indigenous peoples
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GST/HST and indigenous peoples
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Find out if you have to pay the GST/HST
GST/HST rebates available
Documents you need to get GST/HST relief
GST/HST responsibilities as a vendor
Other taxes specific to First Nations and Aboriginal Governments
The Canada Revenue Agency (CRA) wants you to be aware of GST/HST requirements that apply to you as an Indian, an Indian band, and band-empowered entity, under the Indian Act. We recognize that many indigenous people in Canada prefer not to describe themselves as Indians. However, the term Indian is used because it has a legal meaning in the Indian Act.
Find out if you have to pay the GST/HST
In general, indigenous people in Canada are required to pay taxes on the same basis as other people in Canada, except where the limited exemption under Section 87 of the Indian Act applies. Section 87 says that the "personal property of an Indian or a band situated on a reserve" is tax exempt. Inuit and Métis people are not eligible for this exemption and generally do not live on reserves.
See the following tabs for various situations on how GST/HST applies to goods and services.
Goods (this does not include goods that are taxable at 0%)
Generally, Indians do not pay the GST/HST on goods bought on a reserve or delivered to a reserve by a vendor or the vendor's agent. However, the GST/HST does apply in some cases. See the following chart for various situations:
| Purchaser | Situation | Does the GST/HST apply? |
|---|---|---|
| Indian, Indian band, or band-empowered entity |
|
No. Example 1 Example 1
You bought shoes at a store on a reserve. You showed your Indian Status card to the vendor.
|
| Indian, Indian band, or an unincorporated band-empowered entity |
|
No. Example 2 Example 2
You bought a fridge at a store off a reserve. You showed your Indian Status card to the vendor. The vendor delivered it to you on a reserve.
|
| Incorporated band-empowered entity |
|
No. Example 3 Example 3
You bought office supplies from a store off a reserve. The supplies are for a band management meeting. You provided your original band-empowered entity certificate to the vendor. The vendor delivered the office supplies to a reserve.
|
| Indian |
|
Yes. Example 4 Example 4
You bought a computer at a store off a reserve. You used your own vehicle to transport the computer to a reserve.
Exception for Ontario 1 |
| Indian |
|
No. Example 5 Example 5
You bought a computer off a reserve at a store that operates as a remote store. You showed your Indian Status card to the vendor. You used your own vehicle to transport the computer to a reserve.
|
| Indian, Indian band, or band-empowered entity |
|
Yes, even if after importation Canada Post, the vendor, or the vendor's agent delivers the goods to a reserve. Example 6 Example 6
You bought speakers from a store in the United States. The American vendor arranged for the speakers to be delivered to a reserve in Canada.
|
| Non-Indian |
|
Yes. Example 7 Example 7
You bought dishes at a store on a reserve.
|
1 Exception for Ontario: On certain supplies of property or services, only the federal part (5%) of the HST is applicable since point-of-sale relief for the provincial part (8%) of HST is provided. See HST Point-of-Sale exemption.
Services
Services
Generally, Indians do not pay the GST/HST on services performed entirely on a reserve. However, the GST/HST does apply in some cases. See the following chart for various situations:
| Purchaser | Situation | Does the GST/HST apply? |
|---|---|---|
| Indian |
|
No. Example 1 Example 1
You paid a professional to paint your house located on a reserve. You showed your Indian Status card to the vendor.
|
| Indian |
|
Yes, unless the service purchased is related to real property interests on a reserve. Example 2 Example 2
You paid for a computer repair service. The technician performed the diagnosis on a reserve, but the rest of the repair was completed at a shop located off a reserve.
|
| Indian |
|
Yes. Example 3 Example 3
You paid for a legal service in respect of leasing real property off a reserve.
|
| Indian |
|
No. Example 4 Example 4
You paid for a legal service supplied by a law firm located off a reserve. The law firm prepared an agreement for you to lease real property located on a reserve.
|
| Indian band or a band-empowered entity (incorporated or unincorporated) |
|
No, unless the service is related to off-reserve transportation, short-term accommodations, meals, or Entertainment. Example 5 Example 5
You paid for accounting services. The services were performed off a reserve and were related to band management activities. You provided your original band-empowered entity certificate to the accountant.
|
| Indian band or a band-empowered entity (incorporated or unincorporated) |
|
Yes. Example 6 Example 6
An Indian band sent a band official to a week-long band management conference off reserve. The band paid for an off reserve hotel room for the band official for the duration of the conference.
However, you may be entitled to recover the GST/HST paid on these services. For more information, see GST/HST rebates available |
| Indian |
|
No. Example 7 Example 7
You paid for a taxi service that operates within the limits of a reserve. You showed your Indian Status card to the driver.
|
| Indian, Indian band, or band-empowered entity |
|
Yes. Example 8 Example 8
You paid for a taxi service to take you from a location that is not on a reserve to your house that is located on a reserve.
|
| Non-Indian |
|
Yes. Example 9 Example 9
You are a non-Indian and you paid for a car repair service performed on a reserve.
|
GST/HST rebates available
|
Purchaser |
Situation |
You may be eligible to claim |
|---|---|---|
|
Indian, Indian band, or band-empowered entity |
You paid the GST/HST in error. |
General rebate, under Reason code 1A – Amounts paid in error for goods or services bought on or delivered to a reserve. |
| Indian, Indian band, or band-empowered entity |
In Ontario, you paid the provincial part of the HST in error because the vendor did not apply the Ontario point-of-sale relief on qualifying goods and services. |
Rebate for the provincial part of the HST, under Ontario HST Refund for First Nations. |
|
Indian band or |
You paid GST/HST on certain travel expenses you incurred off a reserve (for example, transportation, meeting rooms, short term accommodations, meals, and entertainment expenses). These expenses are for band management activities or for real property located on a reserve. |
General rebate, under Reason Code 8 – Indian band, Tribal council, or band-empowered entity. |
|
Band-empowered entity |
You are considered a qualifying non-profit organization and you paid GST/HST. |
Public Service Bodies' Rebate, under line 306 of Form GST66, Application for GST/HST Public Service Bodies' Rebate and GST Self-Government Refund for a partial recovery of the GST or the federal part of the HST. Public Service Bodies' Rebate, under line 306 of Form RC7066-SCH, Provincial Schedule – GST/HST Public Service Bodies' Rebate for a partial recovery of the provincial part of the HST. |
|
GST/HST registered vendor |
You applied GST/HST relief on goods you sold off a reserve in Ontario. |
General rebate, under Reason code 23 – Ontario First Nations point-of-sale relief. |
Documents you need to get GST/HST relief
As an Indian, it is necessary that you get a proof of registration with Aboriginal Affairs and Northern Development Canada (AANDC) to be eligible for GST/HST relief. For more information, go to Indian Status.
As a vendor, if you do not charge the GST/HST on sales of taxable goods and services, you need proof that the purchaser is an Indian, Indian band, or band-empowered entity. The following chart shows the different documents you need to request and keep in your records.
| Purchaser |
Documents and records required |
Information required when goods are delivered to a reserve |
|---|---|---|
| Indian |
Certificate of Indian Status card – You need to record on the invoice or other sales document their 9 or 10 digit registry number or their band name and family number (commonly referred to as the band number/treaty number), which is found on the card. Temporary Confirmation of Registration Document (TCRD) – Some individuals that are registered as Indians under the Indian Act will receive this card from AANDC. You need to record the registration number and expiration date on the invoice or other sales document. Photocopies of the TCRD presented to the vendor at the time of the sale do not qualify as appropriate documentation. |
The vendor also must keep proof that the goods were delivered to a reserve (for example, a waybill, postal receipt, or freight bill). The goods must be delivered by either the vendor or the vendor’s agent. For more information, go to Purchases of property made off a reserve and delivered to a reserve. |
| Indian band or band-empowered entity |
An original certificate showing one of the following statements:
|
The vendor also must keep proof that the goods were delivered to a reserve (for example, a waybill, postal receipt, or freight bill). The goods must be delivered by either the vendor or the vendor’s agent. For more information, go to Purchases of property made off a reserve and delivered to a reserve. |
GST/HST responsibilities as a vendor
Generally, as a business owner, you have to register for a GST/HST account when revenues from your taxable supplies of goods and services total more than $30,000 annually. This must include your sales to Indians even if no GST/HST was charged.
Once you have registered for the GST/HST, you must collect the GST/HST on your taxable sales of goods and services. To determine if GST/HST is applicable to sales made to Indians, Indian bands, and band-empowered entities, see Find out if you have to pay the GST/HST.
You may also be able to claim input tax credits for the GST/HST paid on purchases related to your commercial activities.
Keeping proper records
You must keep proper records when you sell taxable goods and services to Indians, Indian bands, and band-empowered entities. You need to request the appropriate documents and record certain information, or attach the document, on your invoice or sales receipts.
Vendor who qualifies as a remote store
The requirement for goods to be delivered to a reserve by a vendor or a vendor's agent will be waived where the vendor qualifies as a remote store under one of the three options described in GST/HST Policy Statement P-246, Remote stores and other off-reserve stores with significant sales to Indians, Indian bands, and band-empowered entities.
If you choose to operate as a remote store, you must keep proper documentation regarding the sales you made to Indians, Indian bands, and band-empowered entities. A vendor's reporting period for filing GST/HST returns is not affected by their decision to operate as a remote store.
If you qualify and decide to operate as a remote store, each year, you must advise your tax services office of your decision.
Dealing with a First Nation having a self-government agreement in place
You may come across situations where Indians are members of a First Nation having a self-government agreement in place. In these cases, they will need to provide additional documents to determine if the tax relief under the Indian Act still applies. For more information, go to GST/HST Notice 238, First Nations Having a Self-government Agreement Ending Indian Act Tax Relief – Determining Tax Relief for Indian Members Who Are Not Citizens.
Other taxes specific to First Nations and Aboriginal Governments
Some band councils or other governing bodies of First Nations passed their own laws imposing:
- First Nations Goods and Services Tax (FNGST) which replaces the GST or the federal part of the HST
- First Nations Tax (FNT) on listed products
There are exceptions to the application of the GST/HST to Yukon First Nations. For more information, go to GST/HST Notice143, Application of GST/FNGST to Yukon First Nations and their Members.
Forms and publications
- B-039 GST/HST Administrative Policy - Application of the GST/HST to Indians
- GI-106 Ontario First Nations Point-of-Sale Relief - Reporting Requirements for GST/HST Registrant Suppliers
- GI-114 Application of GST/HST to Indian Individuals
- GI-115 Application of GST/HST to Indian Bands and Band-empowered Entities
- GI-116 Information for Businesses Located on a Reserve
- GI-117 Information for Off-reserve Businesses that Sell Goods or Provide Services to Indians, Indian Bands, or Band-empowered Entities
- GI-127 Documentary Evidence when Making Tax-Relieved Sales to Indians and Indian Bands over the Telephone, Internet and Other Electronic Means
- GST/HST related forms and publications
- Date modified:
- 2015-07-21