Clarity for RCC members doing business on First Nations land in New Brunswick

The retail tax agreement between the government of New Brunswick and First Nations within the province expires on February 1, 2023. The long-standing agreement has seen First Nations maintain price stability between product sold on versus off First Nations’ land. In return, the New Brunswick government has shared some of the provincial revenue from the Harmonized Sales Tax (HST) with First Nations. The end of these agreements has resulted in heated discussions among relevant stakeholders and different interpretations of what the expiring agreements could mean for the sale of gasoline, tobacco, and cannabis on First Nations land.

The Canada Revenue Agency (CRA) has reminded RCC that retailers doing business on First Nations land have technically never been part of this agreement given that the revenue sharing occurs after a retailer (on First Nations land) collects and remits the HST on products it sells. Therefore, CRA has stated that the responsibilities of a retailer on First Nations land, with regards to the collection and remittance of the HST do not change on February 1, 2023.