Canada Revenue Agency
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Sales of goods to Indians, Indian bands, and band-empowered entities
Goods sold on a reserve
A vendor may sell goods on a reserve to Indians, Indian bands, or unincorporated band-empowered entities without charging the GST/HST if they have the appropriate documentation to show the vendor. Goods sold on a reserve to non-Indians are subject to the normal GST/HST rules.
Incorporated band empowered entities
Normally, corporations are considered to be separate legal persons from either an Indian or an Indian band and they have to pay the GST/HST. However, incorporated band-empowered entities do not pay tax when they buy goods for band management activities.
The HST and the participating provinces
The HST will not apply to goods acquired on a reserve in a participating province by Indians, Indian bands, and unincorporated band-empowered entities. Goods bought off a reserve by Indians, Indian bands, and unincorporated band-empowered entities will be relieved of tax if the goods are delivered to a reserve by the vendor or vendor's agent. In both cases, appropriate documentation supporting the relieved sale must be provided to the vendor. If the goods are being purchased on or off the reserve by an incorporated band-empowered entity, they will also have to be acquired for band management activities for the HST relief to apply. For more information, see GST/HST Info Sheet GI-072, HST and First Nations in Ontario and British Columbia.
Only for Ontario
Goods acquired by Indians and Indian bands off a reserve in Ontario without being delivered to a reserve will generally be subject to the HST as of July 1, 2010. However, the Government of Ontario has announced that, effective September 1, 2010, a point-of-sale relief equal to the 8% provincial part of the HST will be provided on qualifying supplies of property and services. For more information, see Ontario First Nations point-of-sale relief.
Goods sold off a reserve
A vendor can sell goods to Indians, Indian bands, unincorporated band-empowered entities, and incorporated band-empowered entities buying goods for band management activities, off the reserve without charging the GST/HST if:
- they have the appropriate documentation to show the vendor; and
- the goods are delivered to a reserve by the vendor or the vendor's agent.
However, if the purchaser uses his or her own vehicle to transport the goods to the reserve, the purchase is subject to the normal GST/HST rules.
Exception
If a vendor qualifies to operate as a remote store, the condition to deliver the goods to a reserve could be removed. For more information, see GST/HST Policy Statement P-246, Remote stores and other off-reserve stores with significant sales to Indians, Indian bands and band-empowered entities.
Only for Yukon
There are exceptions to the application of the GST/HST to Yukon First Nations. For more information, see GST/HST NOTICE143, Application of GST/FNGST to Yukon First Nations and their Members.
Forms and publications
- GST/HST Policy Statement P-246, Remote stores and other off-reserve stores with significant sales to Indians, Indian bands and band-empowered entities
- GST/HST Info Sheet GI-072, HST and First Nations in Ontario and British Columbia
- GST/HST NOTICE143, Application of GST/FNGST to Yukon First Nations and their Members
- GST/HST forms and publications for Indians, Indians bands, and band-empowered entities
