Please note that the following document, although correct at the time of issue, may not represent the current position of the Canada Revenue Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence du revenu du Canada.
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 11th floor
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 189168
Business Number: […]
Dear [Client]:
Subject: GST/HST RULING
Cured, smoked meat products
Thank you for your letter of [mm/dd/yyyy], concerning the application of the goods and services tax/harmonized sales tax (GST/HST) to […] cured, smoked meat products. […].
The HST applies in the participating provinces at the following rates: 13% in Ontario; and 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. The GST applies in the rest of Canada at the rate of 5%.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
STATEMENT OF FACTS
We understand the following:
1. […][The manufacturer] produces meat sausage products […].
2. The manufacturer is registered for GST/HST purposes.
3. […][The Products] are meat sausages, with a casing surrounding a meat filling. […].
4. […][The Products do not] require refrigeration nor do they need to be further prepared by the consumer as they are ready-to-eat straight from the package.
5. […][Product A is] available for individual purchase in prepackaged single servings. […]. The remaining products consist of the meat sausage […] and are offered in [various] sizes […].
6. […][Product B] sausages are available […] [in reclosable packages]. The sausages are loosely packed […] and are available in the following flavours: […].
7. […][The Products] will initially be available in gas and convenience stores and will be situated next to existing meat snacks such as pepperoni sticks and beef jerky. It is anticipated that in the near future, these products will be available in traditional grocery stores. In grocery stores, they would likely be placed next to existing meat snacks already available at these stores.
8. [Product A] prepackaged single servings are labelled “sausage snack”. The display […] containing the single servings will also be labelled “sausage snack. […].
9. […].
10. The main ingredient for [the Products] is meat.
11. The cooking process does not include deep frying or baking. The products are manufactured through smoking and curing.
12. The texture of [the Products] is not crispy, crunchy, brittle, or fluffy.
RULING REQUESTED
You would like to know whether supplies of […][Product A and Product B] are zero-rated for GST/HST purposes.
RULING GIVEN
Based on our understanding of the facts, we rule that supplies of [Product A and Product B] are zero-rated for GST/HST purposes.
EXPLANATION
Section 1 of Part III of Schedule VI to the ETA zero-rates supplies of food or beverages for human consumption, including sweetening agents, seasonings and other ingredients to be mixed with or used in the preparation of such food or beverages, other than supplies excluded from zero-rating by way of paragraphs (a) to (r) of that section.
As none of the exclusionary paragraphs of section 1 of Part III of Schedule VI apply to [Product A and Product B], the products are zero-rated, or subject to the GST/HST at the rate of 0%.
In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, the Canada Revenue Agency (CRA) is bound by the ruling(s) given in this letter provided that: none of the issues discussed in the ruling(s) are currently under audit, objection, or appeal; no future changes to the ETA, regulations or the CRA’s interpretative policy affect its validity; and all relevant facts and transactions have been fully and accurately disclosed.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 905-721-5218. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.
Yours truly,
Zubair Patel
Basic Groceries and Recaptured Input Tax Credits Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
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