In most cases, you must collect GST/HST and QST on sales made to First Nations members (Indians within the meaning of the Indian Act), band councils, tribal councils and band-empowered entities, and on sales of property and services made on a reserve to non-First Nations members.

However, you do not have to collect GST/HST and QST in the following situations:

• Property is purchased on a reserve by a First Nations member, a band council, a tribal council or a band-empowered entity that is not a legal person, or property is delivered to a reserve by the vendor or the vendor's agent (and, for a band-empowered entity that is a legal person, the property is also intended for band management activities or concerns real property situated on a reserve). 
• Services are provided entirely on a reserve, to a First Nations member, in respect of property located on the reserve at that time. 
• Services are provided entirely on a reserve to a First Nations member who is on the reserve at that time.
• Transportation services with departure and arrival points on a reserve are provided to a First Nations member. 
• Services are performed in whole or in part off a reserve for a First Nations member and concern a right to real property situated on a reserve. 
• Services are acquired on a reserve or off a reserve by a band council, tribal council or band-empowered entity for band management activities or for use with respect to real property situated on the reserve. Transportation services, short-term accommodation, and meals and entertainment are subject to GST/HST and QST if acquired outside a reserve. However, a refund of the taxes may be claimed if the property or services were acquired for band management activities or for use with respect to real property situated on the reserve.

Some vendors whose place of business is not located on a reserve do business primarily with First Nations members, band councils, tribal councils or band-empowered entities. In some cases, these vendors are in a remote location and their regular trading zone includes a reserve which is not in the immediate vicinity. In such cases, the requirement for the vendor to deliver the property to the reserve may be difficult to meet, either because of prohibitive costs or lack of transportation services. If this is the case, vendors may, under certain conditions, make sales of property to First Nations members, band councils, tribal councils and band-empowered entities without collecting the taxes, even if the property is not delivered to a reserve. 

For more information, refer to GST/HST policy statement P-246, Remote stores and other off-reserve stores with significant sales to Indians, Indian bands and band-empowered entities, at Canada.ca.

ITCs and ITRs

You can claim input tax credits (ITCs) and input tax refunds (ITRs) for purchases you make in the course of your commercial activities in order to sell property or services to First Nations members, band councils, tribal councils or band-empowered entities, provided all the requirements are met.

This is the case even if you are not required to collect GST/HST or QST on the sales. We suggest that you keep separate entries in your books for sales on which you collected GST/HST and QST and sales on which you did not.

Additional information

For more information, see the following at Canada.ca:

• the Is your status card still valid page for information about the Certificate of Indian Status
• GST/HST Notice 264, Sales Made to Indians and Documentary Evidence – Temporary Confirmation of Registration Document, and GST/HST Info Sheet GI-127, Documentary Evidence when Making Tax-Relieved Sales to Indians and Indian Bands over the Telephone, Internet and Other Electronic Means, for information on the accepted forms of documentary evidence
• GST/HST technical information bulletin B-039, GST/HST Administrative Policy – Application of the GST/HST to Indians, for general information
• GST/HST policy statement P-230, Application of the Excise Tax Act to Leases, Licenses and Similar Arrangements of Tangible Personal Property by Indians, Indian Bands and Band Empowered Entities, for information on the supply of tangible personal property by way of lease