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: 101761-2
Business Number: […]
October 9, 2012
Dear [Client]:
Subject: GST/HST INTERPRETATION
[…][Student meal plans]
Thank you for the letter of January 18, 2008 from your representative […], and your subsequent letter of March 2, 2009 clarifying some of the points raised in the original submission concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to supplies provided by […][Company A]. As indicated in our letter of March 11, 2011, we are writing to you to address question 6 from your incoming letter. Questions 1 to 5 were answered in our letter of March 11, 2011.
At your request, we are responding directly to you and providing a copy to your representative. We apologize for the delay in our response.
HST applies at the rate of 15% in Nova Scotia, 13% in Ontario, New Brunswick, and Newfoundland and Labrador, and 12% in British Columbia. GST applies at the rate of 5% in the remaining provinces and territories.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
We understand the following: […]
INTERPRETATION REQUESTED
Items such as chips or candy can be purchased from the cafeteria or restaurant on campus. Can a student purchase taxable confectionaries (chips, chocolate bars, etc.,) on their Meal Plan Account without paying taxes? Alternatively, can these items be purchased with meal plan dollars if GST/HST is charged thereon?
INTERPRETATION GIVEN
Under section 13 of Part III of Schedule V to the ETA, the following supply is exempt of the GST/HST:
“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.”
Therefore, meals provided to a student under a meal plan that meets all of the following conditions (herein after referred to as a “qualifying meal plan”) are exempt under section 13 of Part III of Schedule V to the ETA:
* The meals are provided to a student enrolled at the university or public college who lives either on-campus or off-campus.
* The student pays a single consideration for the plan.
* The single consideration is sufficient for the student to receive at least 10 meals each week for the period of the plan.
* The plan is for a period of at least one month.
* The meals are served only at an on-campus restaurant or cafeteria (i.e., on the property of the university or public college). A private operator may own or operate the restaurant or cafeteria where the meals are served provided it is on campus.
It is the supply of meals that is exempt under a qualifying mean plan. The ETA does not define the term “meal”. Generally, we consider the general dictionary meaning of terms that are used but not defined in the ETA. In the case of a meal, we would consider that a meal is any of the regular daily occasions when food is eaten, that is, a meal is generally breakfast, lunch or dinner.
The CRA considers that food or beverages that meet the exceptions to the zero-rating provision in paragraphs 1(a) to (n), (o.4), (p) and (r) of Part III of Schedule VI are not a meal in and of themselves. Examples of items included in these provisions are candies, confectionary that may be classified as candy, potato chips, single servings of ice cream and carbonated beverages. For a complete list, please refer to GST/HST Memoranda Series 4.3 Basic Groceries.
A meal plan that allows the purchase of any of the items enumerated in paragraphs 1(a) to (n), (o.4), (p) and (r) of Part III of Schedule VI, other than as part of a meal, will not be a qualifying meal plan. Therefore, section 13 of Part III of Schedule V would not exempt any purchase made under this type of plan.
The foregoing comments represent our general views with respect to the subject matter of your request. These comments are not rulings and, in accordance with the guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, do not bind the CRA with respect to a particular situation. Future changes to the ETA, regulations, or our interpretative policy could affect this interpretation.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-954-4206. 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,
Carol A. Gaudet
Charities, Non-Profit Organizations and Educational Services Unit
Public Service Bodies and Governments Division
Excise and GST/HST Rulings Directorate
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