When it comes to the payment on taxes for goods sold on-reserve, Canadian First Nations Persons enjoy a special tax status. Section 87 of the federal Indian Act provides that First Nations persons are not liable to taxation in respect of their personal property on reserve:
87 (1) Notwithstanding any other Act of Parliament or any Act of the legislature of a province, but subject to section 83 and section 5 of the First Nations Fiscal and Statistical Management Act, the following property is exempt from taxation:
(a) the interest of an Indian or a band in reserve lands or surrendered lands; and
(b) the personal property of an Indian or a band situated on a reserve.
This special status is reflected in both federal and provincial taxation measures.