News and Insights

Canada Revenue Agency Revises Notice on Determining Tax Relief for First Nations

Tax Development May 17, 2019

The Canada Revenue Agency (CRA) recently revised GST/HST Notice 238, “First Nations with a Self-Government Agreement Ending Indian Act Tax Relief – Determining Tax Relief for Indian Members” to update the list of First Nations who do not qualify for exemption under section 87 of the Indian Act. Therefore, a vendor must verify the Indian’s registry or band number does not match a First Nations name or number in the amended list before granting an exemption. However, where the vendor is selling to an Indian who is a member of a listed First Nation, the vendor would be able to provide tax relief if certification is received from the Indian member that they are not a Treaty Beneficiary of the First Nation.

This notice also reminds vendors that they are required to document registry numbers or band names and family number from Certificate of Indian Status Cards when not charging GST/HST on sales to Indians where a supply meets the requirements set out by CRA GST/HST Technical Information Bulletin B-039 “GST/HST Administrative Policy – the Application of GST/HST to Indians.”