The Canada Revenue Agency’s (CRA) administrative Policy B-039 was recently updated November 2020 on the application of the GST/HST to Indians provides information concerning the treatment of supplies made to, or by, Indians, Indian bands and band-empowered entities. The treatment of purchases made by an Indian under the GST/HST is consistent with section 87 of the Indian Act under which personal property of an Indian or an Indian band situated on a reserve and their interests in reserves or designated lands qualify for tax relief.
Importations made by Indians, Indian bands or band-empowered entities are subject to the normal importation rules where importations are subject to tax unless they are specifically zero-rated (that is, taxable at the rate of 0%). The GST/HST on imported goods is collected by the CBSA under the authority of the Customs Act at the time of importation.
Importations of goods are subject to the GST/HST even in those instances where, after importation, the property is delivered to a reserve by the vendor’s agent or by Canada Post.
Contact CRA for any questions relating to GST/HST application and interpretations services.