GST/HST Notices - Notice 271
March 2012

This notice is intended to inform registrants who are required to file a Form GST499 (personalized form) or Form GST499-1 (non-personalized form), First Nations Tax (FNT) Schedule, that the Canada Revenue Agency (CRA) has made several changes to Form GST499/499-1 to assist registrants when completing the form.

Several First Nations have passed bylaws imposing a First Nations Tax (FNT) on listed products sold on their reserves. Listed products are alcoholic beverages, fuel, and tobacco products that are specifically mentioned in the bylaw of the First Nation.

A registrant who sells listed products from a location on a reserve where an FNT has been imposed is required to file a Form GST499/499-1 for each reporting period of the registrant in addition to the registrant's corresponding GST/HST return. Form GST499/499-1 and the GST/HST return are to be submitted together to the CRA.

The registrant's GST/HST return does not identify the FNT separately, but the FNT is included in the GST/HST to be reported. Form GST499/499-1 is used to identify the amount of FNT collected or collectible, the amount of FNT claimed as input tax credits, and other FNT amounts that the registrant has to identify on the form.

Changes made to Form GST499/499-1

Chart 1

The title in Column A of Chart 1 to Form GST 499/499-1 has been changed to emphasize the fact that FNT amounts are to be excluded from the amounts entered in Column A. The registrant is to enter only the GST/HST amounts for the reporting period in Column A.

The instructions for Lines 105A and 108A on the back of Form GST499/499-1 have been changed to clarify what amounts are to be included on these lines in Column A.

Line 105A

The instruction for completing line 105A in Column A has been changed to: "Enter the total of all GST and HST amounts, excluding FNT amounts, that were collected or became collectible in the reporting period and the total amount of GST and HST adjustments, excluding FNT adjustments, to increase net tax (for example, GST/HST obtained from the recovery of a bad debt)". The new instruction emphasizes the fact that FNT amounts are to be excluded from the GST/HST amounts entered on line 105A.

Line 108A

The instruction for completing line 108A in Column A has been changed to: "Enter all unclaimed ITCs (GST/HST, excluding FNT, paid or payable on qualifying expenses) related to the current period, any eligible unclaimed ITCs from a previous period, and the total amount of adjustments to decrease net tax". The new instruction emphasizes the fact that input tax credits (ITCs) that represent an amount of FNT paid or payable on qualifying expenses are to be excluded from the amount entered on line 108A.

All amounts of FNT for the reporting period are to be entered on the appropriate line in Column B.

The amounts entered on each line in Column A and the corresponding line in Column B are to be added together and the totals entered into the corresponding line in Column C. The registrant then enters each amount from Column C on the appropriate line in the GST/HST return for the reporting period (e.g. total on line 105 of Column C in Form GST499/499-1 is to be entered on line 105 in the GST/HST return).

Further Information

The publication, First Nations Tax (FNT), provides further details about the FNT and filing Form GST499/499-1. Guide RC4072, First Nations Tax (FNT) and GST499-1, First Nations Tax (FNT) Schedule (non-personalized version of the form) are available on the CRA's Web site at www.cra-arc.gc.ca. If you need more information about the FNT, please call Business Enquiries at 1-800-959-5525.

Enquiries by telephone

All technical publications on GST/HST are available on the CRA Web site at www.cra.gc.ca/gsthsttech.