PST on sales to First Nations

First Nations individuals and bands are generally exempt from provincial sales tax (PST) when they purchase goods or services on First Nations land. To qualify for the exemption, the goods or services purchased must be for the personal use of the First Nations individual or for the use of the band, and certain exemption criteria must be met.

For the purpose of this exemption:

• A First Nations individual is an individual who qualifies for the section 87 tax exemption under the Indian Act (Canada) or an equivalent provision in a treaty Final Agreement
• Band has the same meaning as in section 2 of the Indian Act (Canada)
• First Nations land means reserve land, shíshálh Lands, Westbank Lands, former reserve land within Treaty Lands, and former reserve land within Nisga’a Lands

Note: Existing Modern Treaty Nation Final Agreements were amended to reinstate or continue the section 87 tax exemption for eligible treaty beneficiaries. See Modern Treaty Nations below.

Corporations or cooperatives with First Nations shareholders, tribal councils and band-empowered entities do not qualify for the general PST exemption (other than for legal services relating to consultations and negotiations). PST applies to purchases by such organizations, even if the sale occurs on First Nations land.

On this page

• Personal use
• How to provide the exemption
• Documentation procedures
• Exemption criteria - purchases of goods
• Exemption criteria - leases of goods
• Exemption criteria - services and software
• Improvements to real property
• Special event liquor permits
• First Nations farmers
• Modern Treaty Nations

Personal use

To qualify for the PST exemption on goods or services purchased on First Nations land, the First Nations individual must purchase the goods or services for personal use, or the band must purchase the goods or services for the use of the band. Personal use means for the beneficial use of the purchaser and may include business or commercial use. For example, a First Nations individual is exempt from PST when they purchase goods for business use in their sole proprietorship.

Personal use does not include:

• Purchases and leases for business use in a corporation, cooperative, tribal council or band-empowered entity
• Purchases and leases on behalf of a non-eligible person (a person who would not be entitled to the exemption if making the purchase directly), even if the non-eligible person will reimburse the First Nations individual
• Purchases and leases where a non-eligible person is paying for goods or services requested by a First Nations individual

How to provide the exemption

To provide the PST exemption to a First Nations individual or band, you must:

• Follow the required documentation procedures (this includes collecting and retaining certain records) and 
• Confirm the sale or lease meets the relevant exemption criteria detailed below

If these requirements are not met, you must charge and collect PST.

Documentation procedures

To provide the PST exemption to a First Nations individual or band, you must follow the documentation procedures detailed below.

Separate procedures exist to provide tax exemptions on tobacco sales. For more information, see our Making tax-exempt tobacco sales page.

First Nations individuals

Generally, First Nations individuals (including citizens or members of a Modern Treaty Nation) who have a valid Certificate of Indian Status card or Temporary Confirmation of Registration Document (TCRD) are eligible for the PST exemption. Expired cards and documents are discussed below.

Note: First Nations individuals who are citizens or members of a Modern Treaty Nation are eligible for the PST exemption even if their Certificate of Indian Status card states they are no longer eligible for sales tax exemptions.

Certificate of Indian Status card

Indigenous Services Canada (ISC) issues a secure Certificate of Indian Status (SCIS) card to each individual registered as an Indian under the Indian Act (Canada) if they apply for the card. The Certificate of Indian Status, or status card, is still issued in some First Nations offices. All previously issued versions of the Certificate of Indian Status cards are valid until the renewal date on the card.

Each Certificate of Indian Status card bears the cardholder’s photograph, name, signature, and either a registration number or their band's name and number. The first three digits of the registration number is the band number.

When presented with a Certificate of Indian Status card by an individual requesting exemption as a First Nations individual, you must determine the individual qualifies for exemption and follow the documentation procedures listed below:

1. For in-person sales, check that the photograph on the status card is that of your customer
2. For all sales, either:
   1. Retain a copy of the front and back of the status card or 
   2. From the information on the status card, record the individual's name and either:
      1. the registration number or
      2. their band's name and number
3. For in-person sales, obtain your customer's signature on the sales slip or invoice and ensure this signature matches the signature on the status card

For online or phone sales, you may accept a faxed, mailed or digital copy of the status card.

Additional documentation procedures apply for: 

• Delivered goods
• Sales of vehicles
• Leases of goods to First Nations individuals

Temporary Confirmation of Registration Document (TCRD)

If an individual has recently applied for and has not yet received their Certificate of Indian Status card, you may accept their Temporary Confirmation of Registration Document (TCRD) issued by Indigenous Services Canada (ISC) as proof the individual qualifies for the PST exemption as a First Nations individual. If an individual provides you with a TCRD, they must also show a piece of government-issued photo identification, such as a passport, driver’s licence or BCID card.

When presented with a TCRD, you must determine the individual qualifies for exemption and follow the documentation procedures listed below:

1. For in-person sales, check that the photo identification matches your customer
2. For all sales, check that the information on the photo identification matches the information on the TCRD
3. For all sales, either:
   1. Retain a copy of the TCRD or
   2. From the information on the TCRD, record the individual's name and the registration number
4. For in-person sales, obtain your customer's signature on the sales slip or invoice and ensure this signature matches the signature on the photo identification

For online or phone sales, you may accept a faxed, mailed or digital copy of the TCRD and government-issued photo identification.

Additional documentation procedures apply for: 

• Delivered goods
• Sales of vehicles
• Leases of goods to First Nations individuals

Expired Certificate of Indian Status card or TCRD

You may accept an expired Certificate of Indian Status card or TCRD if the individual provides an additional piece of government-issued photo identification (e.g. passport, driver’s licence, BCID card) that matches the individual with the status card or TCRD.

This process is for verification purposes only. You do not need to record information from the additional identification or retain a copy of the additional identification.

If an individual presents you with a valid Certificate of Indian Status card or TCRD when purchasing an ongoing service (e.g. telecommunication services such as cell phone services) you do not need to ask for an updated Certificate of Indian Status card or TCRD after it expires. The individual continues to be eligible for the exemption and does not need to provide updated identification.

Bands

Sales and leases directly to bands

Purchases and leases made in the name of a band (e.g. the purchase order or invoice is specifically made in the name of the band) qualify for exemption provided the relevant exemption criteria are met and the goods or services are for the use of the band. For all such sales and leases, you must record the band's name and number.

Additional documentation procedures apply for:

• Delivered goods
• Sales of vehicles

Sales and leases to authorized individuals

Purchases and leases made on behalf of a band (i.e. the agreement is not specifically made in the name of the band) qualify for exemption provided the relevant exemption criteria are met and the goods or services are for the use of the band.

To make a purchase or lease on behalf of a band, an individual must have written authorization from the band to act for the band. The authorization must show the band name and number and be signed by an appropriate band official. The individual must also show a piece of government-issued photo identification, such as a passport, driver's licence or BCID card.

When presented with an individual’s written authorization (original, photocopy, fax or digital copy) to act for the band, you must follow the documentation procedures listed below:

1. For all sales, check that the individual's photo identification matches the name of the individual authorized by the band
2. For all sales, either:
   1. Retain a copy of the individual's written authorization to act for the band or
   2. From the written authorization, record the individual's name, the band's name and number, and the name of the band official who signed the written authorization
3. For in-person sales, obtain the individual's signature on the sales slip or invoice

For online or phone sales and leases, you may accept a faxed, mailed or digital copy of the individual's government-issued photo identification and their written authorization to act for the band.

Additional documentation procedures apply for:

• Delivered goods
• Sales of vehicles

Customer does not provide the required documentation at the time of sale or lease

If your customer does not provide the required documentation to claim an exemption at the time of the sale or lease, you must charge and collect PST. If they later provide the required documentation, you may refund or credit your customer the PST within 180 days from the date the PST was charged.

After the 180 days, you cannot refund your customer the PST (if you do, you are not eligible to make an adjustment on your PST return for this amount and you are not eligible for a refund from us). However, your customer may claim a refund from us. For information about PST refunds for First Nations individuals and bands, see Bulletin PST 400, PST Refunds (PDF, 460KB).

Records

You must keep the documentation as directed above to show why you did not charge PST on a sale or lease to a First Nations individual or band. You must also have evidence the sale or lease met the relevant exemption criteria (e.g. for sales of goods, title to the goods must pass on First Nations land). Exemption criteria for each type of sale or lease are provided in the sections below. You must keep these records for five years. If you do not keep these records, you may be assessed PST, plus penalties and interest.

Exemption criteria - purchases of goods

General goods

Goods purchased by a First Nations individual or band are exempt from PST if title to the goods passes on First Nations land. This includes goods purchased on First Nations land as well as purchases negotiated off First Nations land where the goods are delivered to First Nations land, provided title to the goods passes on First Nations land.

Note: Multijurisdictional vehicles (MJVs) purchased by a First Nations individual or band are exempt from MJV tax if title to the MJV passes on First Nations land. For more information, see Bulletin PST 135, Multijurisdictional Vehicles (PDF, 470KB).

Goods purchased on out-of-province First Nations land

When a First Nations individual or band purchases goods located on out-of-province First Nations land, the goods are exempt from PST when brought into B.C. for the use of the individual or band, provided the paramount location of the goods will be on First Nations land. For vehicles, this means the vehicle will be registered by a First Nations individual or band to an address on First Nations land. 

Energy products

Energy products (e.g. natural gas, kerosene, non-motor fuel oil, heating oil, steam and heat) purchased by a First Nations individual or band are exempt from PST if title to the energy products passes on First Nations land. This includes energy products purchased on First Nations land as well as energy products delivered to a location on First Nations land, provided title to the goods passes on First Nations land.

Note: The exemption also applies to the 0.4% tax on energy products (ICE Fund tax). For more information, see Bulletin PST 203, Energy, Energy Conservation and the ICE Fund Tax (PDF, 370KB).

Additional documentation procedures - delivered goods (except vehicles)

If you're a seller located off First Nations land and you deliver goods to a First Nations individual or band on First Nations land, to show why you did not charge PST you must keep evidence that:

• The goods were shipped or delivered to First Nations land (e.g. bills of lading, shipping invoices or similar documentation) and
• Title to the goods did not pass to the First Nations individual or band until the goods were located on First Nations land (e.g. the sales contract or invoice states the sale is made F.O.B. First Nations land)

Additional documentation procedures - sales of vehicles

Private purchases

If you're a First Nations individual purchasing a vehicle privately on First Nations land, for ICBC to accept your claim for exemption, you must provide ICBC with a letter from the seller stating that the sale occurred on First Nations land. The letter must include the year, make, model and vehicle identification number (VIN) of the vehicle.

Motor vehicle dealers

If you're a motor vehicle dealer, see Bulletin PST 116, Motor Vehicle Dealers and Leasing Companies (PDF, 430KB) for information on:

• Documentation requirements for sales to First Nations individuals and bands
• Joint purchases of vehicles by First Nations and non-First Nations customers

Exemption criteria - leases of goods

Goods leased by a First Nations individual or band are exempt from PST if the interest in the lease is located on First Nations land.

For First Nations individuals, the interest in the lease is considered to be located on First Nations land if the individual resides on First Nations land.

The First Nations individual or band does not need to receive possession of the leased goods on First Nations land for the exemption to apply. However, for a lease buy-out to be exempt from PST, title to the goods must transfer on First Nations land.

For more information, see Bulletin PST 315, Rentals and Leases of Goods (PDF, 490KB).

Note: If the item being leased is a passenger vehicle, the exemption also applies to the $1.50 per day passenger vehicle rental tax (PVRT). For more information on the PVRT, see Bulletin PST 116, Motor Vehicle Dealers and Leasing Companies (PDF, 430KB). If the item being leased is an MJV, the exemption also applies to the MJV tax. For more information on MJVs, see Bulletin PST 135, Multijurisdictional Vehicles (PDF, 470KB).

Additional documentation procedures - leases of goods to First Nations individuals

When a First Nations individual (the lessee) requests an exemption from PST on a lease of goods, you must check that the lessee:

• Meets the documentation requirements for First Nations individuals and
• Can demonstrate they reside on First Nations land. The lessee may do so by presenting identification that shows their current address on First Nations land, or by providing a letter from their band certifying they reside on First Nations land

You must record the information from the individual’s identification (e.g. driver’s licence number) and their address as shown on the identification or retain a copy of the identification or letter from the band.

If the lessee cannot provide this identification, or you're unable to determine the address is on First Nations land, you must charge PST.

Exemption criteria - services and software

Accommodation

Accommodation purchased by a First Nations individual or band is exempt from PST and the municipal and regional district tax (MRDT) if the accommodation is provided wholly on First Nations land. For more information, see our Accommodation page.

Related services

Related services are services provided to goods. Related services purchased by a First Nations individual or band are exempt from PST if the related services are provided wholly on First Nations land. For more information, see Bulletin PST 301, Related Services (PDF, 400KB). 

Software

Software purchased by a First Nations individual or band is exempt from PST if the software is purchased for use on, through or with an electronic device that is owned or leased by the First Nations individual or band and is ordinarily situated on First Nations land. For more information, see our Software page.

Telecommunication services

Telecommunication services purchased by a First Nations individual or band are exempt from PST if they're purchased for use on or with an electronic device that is owned or leased by the First Nations individual or band and is ordinarily situated on First Nations land. For more information, see our Telecommunication services page.

Legal services (First Nations individuals or bands)

Legal services purchased by a First Nations individual or band are exempt from PST if the legal services:

• Relate to real property situated on First Nations land, or
• Are performed on First Nations land (i.e. the lawyer is physically present on First Nations land while the legal services are performed)

For more information on legal services, see Bulletin PST 106, Legal Services (PDF, 330KB).

Legal services (consultations and negotiations)

Legal services purchased by an Aboriginal organization representing the interests of First Nations individuals and bands are exempt from PST if the legal services relate to any of the following:

• Aboriginal treaty or land claims negotiations
• Consultations with the provincial or federal governments in relation to Aboriginal rights or Aboriginal title, or in relation to interim agreements that relate to Aboriginal rights or Aboriginal title
• Negotiations that relate to existing treaties or treaty rights
• Negotiations with other Aboriginal organizations in relation to overlapping treaty or land claims

Legal services related to the consultations or negotiations listed above include litigating disputes arising from such consultations or negotiations, including in court.

For more information on legal services, see Bulletin PST 106, Legal Services (PDF, 330KB).

Improvements to real property

A contractor is exempt from paying PST if all the following criteria are met:

• The contractor obtains the goods for the purpose of fulfilling a written contract under which the contractor is required to supply and affix, or install, affixed machinery or improvements to real property
• Under the terms of the contract, the goods will be used so that they cease to be personal property at common law (e.g. they'll be incorporated into real property)
• The other party to the contract is a First Nations individual or band who would be exempt from PST if the First Nations individual or band were to purchase the goods at the same place as where the goods are used to improve the real property

If the contractor purchases the goods from a PST collector, the contractor claims the exemption by providing a Certificate of Exemption – Contractor (FIN 491) (PDF, 210KB) completed by both the contractor and the First Nations individual or band. The contractor cannot use their PST number to obtain this exemption.

If the contractor hires a subcontractor to supply and install the goods and the subcontractor purchases the goods from a PST collector, the subcontractor claims the exemption by providing both of the following:

• A Certificate of Exemption – Subcontractor (FIN 493) (PDF, 170KB) completed by the subcontractor
• A copy of the Certificate of Exemption – Contractor (FIN 491) (PDF, 210KB) completed by the contractor and the First Nations individual or band

The subcontractor cannot use their PST number to obtain this exemption.

Find additional resources, including information about PST refunds, on our PST for real property contractors page.

Special event liquor permits

The special PST rules as set out below apply if liquor under a Special Event Permit is:

• Purchased on First Nations land by a First Nations individual or band, if the liquor will be provided by the First Nations individual or band at no charge at an event (e.g. an open bar at a wedding), or
• For sale at an event on First Nations land

In all other situations, the general PST rules apply. For more information, see our Special event liquor permits page.

Liquor purchased on First Nations land (to be provided at no charge at an event)

First Nations individuals and bands are exempt from PST when they purchase liquor under a Special Event Permit if:

• The First Nations individual or band purchases the liquor on First Nations land, and
• The liquor will be provided at no charge at an event

This applies regardless of whether the event will be on First Nations land or the liquor will be consumed by First Nations individuals.

Liquor purchased for sale at an event on First Nations land

When you purchase a Special Event Permit to sell liquor at an event on First Nations land, you must:

• Estimate the amount and the expected selling price of the liquor you'll sell, and
• Pay an amount equal to the 10% PST (PST equivalent amount) on the mark-up (i.e. the difference between the price you pay for the liquor and the expected selling price) if you'll be selling liquor above the price you pay for the liquor

At or after the time you purchase a Special Event Permit, you can purchase liquor using that permit. When you purchase the liquor, you must pay PST at 10% on the purchase price of the liquor. For more information, see our Special event liquor permits page.

During your event, you must:

• Charge 10% PST on your sales of liquor to non-First Nations individuals
• For exempt sales of liquor to First Nations individuals, follow the documentation procedures for First Nations individuals. You must keep the required documentation to show why you did not charge PST

If the PST you collect on your sales is equal to the PST you paid on the liquor plus the PST equivalent amount you paid when you purchased the permit, you can keep all the PST you collect on the sale of the liquor.

Actual liquor sales are greater than estimated

If your actual taxable liquor sales are greater than what you estimated when you purchased the Special Event Permit or you sell the liquor at a higher price, you must remit to us the amount of PST collected less the total of:

• Any PST you paid when you purchased the liquor, and
• The PST equivalent amount you paid on the mark-up when you purchased the permit

You must remit the additional PST to us on or before the last day of the month after the month in which the Special Event Permit expires. For example, if the permit expires on July 22, you must remit the additional PST on or before August 31.

If you're a PST collector who files monthly, you may remit the additional PST collected on your PST return for the reporting period that includes the month in which the Special Event Permit expires. However, if you're not a collector or if you're a PST collector who does not file monthly returns, you must self-assess the additional PST due using a Casual Remittance Return (FIN 405) (PDF, 260KB) on or before the last day of the month following the month in which the permit expires.

Refunds - exempt sales of liquor to First Nations individuals

As noted above, you must pay the PST and PST equivalent amounts when you purchase liquor for resale under a Special Event Permit. If you later make exempt sales to First Nations individuals on First Nations land under the permit, you may apply for a refund from us of both the PST and PST equivalent amounts you paid in relation to the liquor you sold exempt.

The person who holds the Special Event Permit must apply for the refund. In many cases, this is the “Permittee” named on the Special Event Permit. However, if the “Permittee” is an unincorporated organization (e.g. a recreational softball team), the person named as the “Applicant” on the permit must apply for the refund. We may return a refund application to you without processing if the applicant information needs to be changed.

To apply for a refund, complete the Application for Refund of Provincial Sales Tax (PST) Special Event Permit (FIN 355/SEP) (PDF, 270KB) and include the following:

• A statement explaining the reason for claiming the refund
• A copy of the Special Event Permit
• The Special Event Permit Application Summary showing the PST equivalent amount paid on the mark-up
• Sales records showing the quantity and price of each type of liquor sold at the event to First Nations individuals

You may also be asked for:

• Records to show that at the time of making an exempt sale to First Nations individuals, you followed the required documentation procedures for First Nations individuals
• Proof the event occurred on First Nations land

Refunds - cancelled events, returns of unsold liquor, or actual selling price was less than estimated

For information on refunds for cancelled events, returns of unsold liquor, or where the actual selling price was less than estimated, see our Special event liquor permits page.

First Nations farmers

Additional exemptions are available to First Nations individuals who are qualifying farmers. A First Nations individual is a qualifying farmer if they:

• Use First Nations land for a qualifying agricultural use (e.g. raising livestock), as defined under the Assessment Act, and
• Earned at least $2,500 in gross income from the qualifying agricultural use of the First Nations land in the previous calendar year

For information on the exemptions available to qualifying farmers, see Bulletin PST 101, Farmers (PDF, 430KB).

Modern Treaty Nations

Modern Treaty Nation beneficiaries

The treaty Final Agreements of the following Modern Treaty Nations were amended to reinstate or continue the treaty tax exemption for eligible treaty beneficiaries (see effective dates below). This means that the PST exemption became applicable to eligible Modern Treaty Nation beneficiaries on certain lands as outlined in the table below. As of January 1, 2024, all First Nations individuals are exempt from PST on purchases or leases made on First Nations land.

As noted above, First Nations individuals who are citizens or members of a Modern Treaty Nation are eligible for this exemption on or after the effective date of the amendment to their Final Agreement, even if their Certificate of Indian Status card states they are no longer eligible for sales tax exemptions.

First Nations individuals who paid PST when they were eligible for an exemption may qualify for a refund. For more information, see Bulletin PST 400, PST Refunds (PDF, 460KB).

Modern Treaty Nation governments

The following Modern Treaty Nation governments have a unique taxation structure that is set out in their treaty arrangements with Canada and B.C.

Modern Treaty Nation governments do not qualify for the general PST exemption on goods or services purchased on First Nations land, so they pay PST unless a specific exemption applies.

Modern Treaty Nation governments may apply for a refund of taxes paid under certain circumstances. For more information, see the agreements listed in the table above.