📘 GST/HST Policy Statement P‑230

Title: Application of the Excise Tax Act to Leases, Licenses and Similar Arrangements of Tangible Personal Property by Indians, Indian Bands and Band Empowered Entities

Source: Canada Revenue Agency (CRA) — Official Canadian government publication.

🔍 Overview

P‑230 outlines how the Excise Tax Act applies to leases, licences, and similar arrangements of tangible personal property involving:

  • Indians
  • Indian Bands
  • Band Empowered Entities

It clarifies when such arrangements are exempt from GST/HST and when they are taxable. View full guidance.

📌 Key Points

  • Taxable items: leases, licences, and similar arrangements of tangible personal property.
  • Lease interval: each rental period is considered a separate supply.
  • On-reserve supplies: may be exempt from GST/HST under Section 87 of the Indian Act.
  • Off-reserve supplies: generally taxable unless documentation proves delivery or use on reserve.

See also GST/HST Administrative Policy B‑039 for additional rules.

📌 Practical Examples

  • If a First Nations organization leases equipment on a reserve, GST/HST may be exempt.
  • If equipment is used off reserve, GST/HST usually applies.
  • Documentation is required to verify the buyer’s status and the location of supply.

📎 Additional Resources

➡️ GST/HST Administrative Policy B‑039 — detailed application of GST/HST to Indians and Band organizations.