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, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: […]
Business Number: […]
Dear [Client]:
Subject: GST/HST RULING
Application of GST/HST to […][the Product][a chicken based product]
Thank you for your letter of [mm/dd/yyyy], concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to varieties of […] (the Product) manufactured by […] (the manufacturer).
The HST applies in the participating provinces at the following rates: 13% in Ontario, New Brunswick and Newfoundland and Labrador, 14% in Prince Edward Island and 15% in Nova Scotia. 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
1. The manufacturer is registered for GST/HST purposes.
2. The Product is sold in a prepackaged container as a single serving.
3. The Product requires refrigeration and is not heated.
4. The net weight of the Product is […] grams for […] varieties and […].
5. The Product contains […] precooked chicken along with […][describes flavoring].
6. […][List of product varieties].
7. The Product is promoted as being […][describes benefits and convenience]
8. The Product is labelled as “[…]”.
9. As the Product requires refrigeration, based on retailer preference, the Product may be shelved in the prepared salads section, the self-serve deli section or the packaged meat section. […].
10. The Product’s website […] describes the Product as follows: […]
RULING REQUESTED
You would like to know whether the supply of the Product is zero-rated or taxable at the full rate of GST/HST.
RULING GIVEN
Based on the facts set out above, we rule that the supply of the Product is a zero-rated supply pursuant to section 1 of Part III of Schedule VI to the ETA.
EXPLANATION
Generally, in accordance with section 165, every recipient of a taxable supply made in Canada is required to pay GST/HST on the value of the consideration for the supply. Zero-rated supplies (listed in Schedule VI to the ETA) are subject to the GST/HST at the rate of 0% and exempt supplies (listed in Schedule V to the ETA) are not subject to the GST/HST.
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 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.
With respect to the Product under consideration, as none of the exclusions in paragraphs 1(a) to (r) of section 1 of Part III of Schedule VI to the ETA apply to a supply of the Product, this supply would be zero-rated.
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 given in this letter provided that: none of the issues discussed in the ruling 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 905-721-5220. 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 Point-of-Sale Rebates Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
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