Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.
Excise and GST/HST Rulings
Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
Case Number: 101871
October 15, 2008
Subject:
GST/HST RULING
XXXXX - Whether a Nutritional Supplement
Dear XXXXX:
Thank you for your letter of XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST). Your case XXXXX the Goods Unit of the Excise and GST/HST Rulings Directorate.
All legislative references are to the Excise Tax Act (ETA) and the regulations thereunder, unless otherwise specified.
Statement of Facts
Based on the information contained in your letter, and on information obtained through our own research, we understand the facts to be as follows:
The Product
1. XXXXX distributes a product called XXXXX
2. XXXXX consists XXXXX sold in the form XXXXX.
3. XXXXX
4. XXXXX
5. XXXXX.
6. XXXXX
Packaging and Labelling
7. XXXXX
8. The background colour of the container and of the label is XXXXX. The relevant parts of the label on XXXXX can be divided into the XXXXX following categories.
a) Brand identification and the front display of XXXXX
This is the most visible part - designed as the front display, "XXXXX is printed at XXXXX, XXXXX is printed XXXXX, but the characters XXXXX, and finally XXXXX and XXXXX printed XXXXX in XXXXX.
b) Ingredient identification, directions for use XXXXX
The English version is as follows: XXXXX
The French version reflects the English version XXXXX.
c) XXXXX.
There is a logo XXXXX which represents XXXXX.
d) Nutrition facts
The label indicates that there are XXXXX calories per XXXXX. The label also indicates that XXXXX contains the XXXXX as follows: XXXXX
Ruling Requested
You would like to know whether XXXXX, as described above, would be zero-rated as a "nutritional supplement" for GST/HST purposes.
You also asked XXXXX whether XXXXX would be zero-rated as a food ingredient for GST/HST purposes.
Ruling Given
Based on the facts set out above, we rule that XXXXX is not a nutritional supplement for GST/HST purposes. XXXXX. We rule that the supply of XXXXX is subject to GST at 5% or HST at 13%.
This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.
Explanation
XXXXX. It is whether the product is a nutritional supplement that we examine here in responding to your letter on that issue.
Paragraph 160 of the Memorandum 4.3 Basic Groceries states that "Meal replacement products and nutritional supplements that qualify as meal replacements or nutritional supplements (and not dietary supplements) under the Food and Drugs Act and Regulations are considered to be zero-rated basic groceries." CRA's position is that when a product does not meet the requirements to be sold or advertised as a nutritional supplement pursuant to the Food and Drugs Act or the Food and Drug Regulations, that product cannot be zero-rated as a nutritional supplement. We examined whether XXXXX met these requirements and we concluded that it did not.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at (613) 952-8815. Should you have additional questions on the interpretation and application of GST/HST, please call me directly at 613-952-8815.
Yours truly,
Raymond Labelle
Goods Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
UNCLASSIFIED
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