Canada Revenue Agency
www.cra.gc.ca
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Sales of services to Indians, Indian bands and band-empowered entities
Services for property
If a service is performed totally on reserve and the property is situated on reserve at that time, such as the service of painting a house on a reserve, GST/HST does not apply.
Services for individuals
If the service is performed totally on reserve for an Indian who is on reserve at the time the supply of the service is performed, such as a haircut given on reserve, GST/HST does not apply.
Individual Indians must pay the GST/HST on all taxable services that are not performed totally on reserve, unless the services are bought for real property interests on reserve.
The HST and the participating provinces
Services performed totally on a reserve that are acquired by an Indian will be relieved of HST. Generally, services performed off a reserve will be subject to HST. Services acquired on or off a reserve by an Indian band or band-empowered entity for band management activities will not be subject to HST.
Only for Ontario
Services acquired by Indians and Indian bands off a reserve in Ontario without being performed on 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.
Transportation services
GST/HST applies to these services, unless both the origin and the destination are on a reserve. For example, a taxi service operating within the boundaries of a reserve does not charge GST/HST on that fare. In addition, the GST/HST would not apply on a transportation service provided to an Indian from one reserve to another.
Services are subject to the normal GST/HST rules when they are provided to non-Indians on a reserve.
Indian bands and band-empowered entities
Services bought on or off reserve by an Indian band or band-empowered entity (incorporated or unincorporated) for band management activities or for real property on reserve are not subject to GST/HST.
Exception
Indian bands and band-empowered entities will pay the GST/HST on off-reserve purchases of transportation, short-term accommodation, meals, and entertainment. However, the band or the band-empowered entity may be entitled to a rebate. They can claim a rebate under Reason code 8 of Form GST189, General Application for Rebate of GST/HST to recover the GST/HST paid on these purchases when these services are bought for management activities or for real property located on reserve. This form must be filed no later than two years after the GST/HST was paid. For more information, see Guide RC4033, General Application for GST/HST Rebates.
Other rebate
Indian bands and band-empowered entities may claim a Public Service Bodies' Rebate for a partial rebate on the remaining GST/HST that was paid. Please note that band funding of First Nation non-profit organizations will be considered equivalent to government funding to qualify for the 50% GST/HST rebate to non-profit organizations.
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.
