CRA has published a new GST/HST Memorandum on school cafeterias and university and public college meal plans

ETA Sched. V, Pt. III, s. 12 exempts:

a supply of food or beverages (other than prescribed food or beverages or food or beverages supplied through a vending machine) where the supply is made in an elementary or secondary school cafeteria primarily to students of the school, except where the supply is for a private party, reception, meeting or similar private event.

Comments made by CRA on s. 12 in its new GST/HST Memorandum on school cafeterias and university and public college meal plans include:

• “primarily” means that “more than 50% of the supplies must be to students of the particular school” – and if the test is met, food and beverages sold at the cafeteria to the minority of non-students generally are exempted.
• where the school does not have a cafeteria, classrooms, gymnasiums or other designated areas can be treated as cafeterias
• a fast-food chain could supply the lunches served at the school cafeteria

ETA Sched. V, Pt. III, s. 13 exempts:

a supply of a meal to a student enrolled at a university or public college where the meal is provided under a plan that is for a period of not less than one month and under which the student purchases from the supplier for a single consideration only the right to receive at a restaurant or cafeteria at the university or college not less than 10 meals weekly throughout the period.

CRA accommodates the use by universities or public colleges of declining balance cards for meal plans and will treat the payments made under this card for the on‑campus meal plan account as contrasted, say, to the portion applied to an off‑campus meal plan account, or a mini‑mart or non‑food account such as for laundry or bookstore purchases, as qualifying for the above exemption if there is appropriate separate accounting and the other conditions are satisfied.

Neal Armstrong. Summaries of GST/HST Memorandum 20-5 “School Cafeterias, University and Public College Meal Plans, and Food Service Providers” December 2019 under ETA Sched. V, Pt. III, s. 12, s. 13, s. 14.