PST on sales to First Nations

Purchases of goods made by First Nations individuals and bands on reserve land are generally exempt from provincial sales tax (PST) when the exemption criteria are met.

For the purpose of this exemption:

  • a First Nations individual is an individual who is an Indian under the Indian Act (Canada) and whose property is exempt under section 87 of the Indian Act (Canada) or under a provision of a final agreement equivalent to that section
  • band has the same meaning as in section 2 of the Indian Act (Canada)
  • First Nations land means reserve land or former reserve land now part of treaty lands (see the definition of First Nation land in the Provincial Sales Tax Exemption and Refund Regulation)

Corporations or cooperatives with First Nations shareholders, tribal councils and band-empowered entities don’t qualify for the exemption on purchases of goods or services, other than the legal services referred to below. PST applies to purchases by such organizations, even if the sale occurs on First Nations land.