GST/HST Exemption for Indigenous Peoples 2025

The GST/HST exemption for Indigenous peoples is one of the most commonly used but also most commonly misunderstood financial benefits available to Status Indians in Canada. This guide explains exactly who qualifies, what purchases are covered, how to claim the exemption, and what the rules are around delivery and location.

Who Qualifies for the GST/HST Exemption?

The GST/HST exemption under Section 87 of the Indian Act applies specifically to:

• Status Indians — individuals registered under the Indian Act with a valid Certificate of Indian Status
• First Nations bands — for purchases made for band purposes on-reserve
• Band-empowered entities — organizations wholly owned and controlled by a band on-reserve

The exemption does NOT apply to Métis or Inuit people who are not registered under the Indian Act.

What Purchases Are Exempt?

The GST/HST exemption applies to goods and services that are "situated on a reserve" at the time of supply. The CRA has established specific rules for different types of transactions:

Goods — The Delivery Rule

Services — The Location Rule

Services are exempt from GST/HST if they are performed entirely on a reserve. If a service is performed partly on and partly off reserve, only the on-reserve portion may be exempt. Services performed entirely off-reserve are fully taxable even if provided to a Status Indian.

Real Property

The supply of real property situated on a reserve to a Status Indian or band is generally exempt from GST/HST. This includes purchases of homes on-reserve.

How to Claim the Exemption at Point of Sale

1. Present your Certificate of Indian Status (Status Card) to the vendor before the transaction
2. The vendor verifies your card and records it as a tax-exempt sale
3. The vendor does not charge GST/HST on the qualifying purchase
4. Keep a copy of the receipt showing the tax-exempt status

Online Shopping and the GST/HST Exemption

For online purchases to qualify for GST/HST exemption, the goods must be shipped directly to a reserve address by the vendor. Steps to claim the exemption for online purchases:

• Provide your reserve address as the shipping address
• Contact the vendor before ordering to inform them you are a Status Indian and the goods will be delivered to a reserve — ask them to process the sale as GST/HST exempt
• Some vendors have established processes for this; others may not be familiar with the rules

Major retailers vary in their processes for GST/HST exemption on delivery orders. Some have specific forms or processes; others require a phone call to their customer service team.

Motor Vehicle Purchases

Motor vehicles purchased by Status Indians are exempt from GST if the vehicle is delivered to a reserve. Delivery must be made by the dealer — the purchaser cannot pick up the vehicle and drive it to the reserve themselves. This is a significant exemption given the cost of vehicles.

Provincial sales tax rules for vehicles also vary. In Ontario, for example, Status Indians are entitled to relief from the retail sales tax portion of the HST on vehicles if delivery is on-reserve.

Vendor Responsibilities

Vendors who sell to Status Indians and bands on-reserve must document the exemption properly. The CRA provides guidance to vendors on how to verify status and record tax-exempt sales. Vendors are not required to accept a Status Card that appears expired or fraudulent.

GST/HST Credit — Available to All Indigenous Canadians

Separate from the Section 87 exemption, all Canadians including Indigenous people who file a tax return may receive the GST/HST Credit — a quarterly payment from the CRA to help low- and modest-income individuals offset GST/HST costs. This is separate from the Section 87 exemption and is available to Métis, Inuit, and First Nations people alike.

Understanding and correctly using the GST/HST exemption can save Status Indians significant money each year. Know your rights, carry your Status Card, and present it at every qualifying on-reserve purchase.