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, 16th floor
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX
Attention: XXXXX
Case Number: 109575
Business Number: XXXXX
January 16, 2009
Dear XXXXX:
Subject:
GST/HST RULING
XXXXX
Thank you for your XXXXX of XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to XXXXX (the Product).
HST applies at the rate of 13% in the participating provinces of Nova Scotia, New Brunswick and Newfoundland and Labrador. 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.
Statement of Facts
Our understanding of the facts is as follows:
1. The Product is distributed by XXXXX.
2. The submission consisted of the packaging proof for the Product and the XXXXX. To obtain further information about the Product, a sample Product of the XXXXX flavour was purchased. The information which follows was obtained from the sample Product packaging and the packaging proof supplied with the submission.
3. The Product consists of XXXXX packaged in a card board box. Each XXXXX weighs XXXXXg, for a total package weight of XXXXXg.
4. The front of the package contains the following information:
• XXXXX
• XXXXX
• XXXXX
• XXXXX
The front of the box is XXXXX so that an actual XXXXX, with the XXXXX cover, can be seen.
5. The back of the package contains the same information as the front, but in French, along with the XXXXX for the XXXXX.
6. One of the side panels contains the ingredients and serving suggestions. XXXXX
7. The other side panel contains the Nutrition Facts. One XXXXX contains XXXXX calories.
8. The bottom of the cardboard packaging box has the XXXXX information.
9. Each individual XXXXX contains all of the information as listed above, including the XXXXX information.
10. The sample Product was purchased from a typical grocery store and it was located between packages of XXXXX and multi-packages of single serving sizes of XXXXX.
11. The Product is not labelled as a juice or beverage.
Ruling Requested
You would like to know the GST/HST status of supplies of the Product.
Ruling Given
Based on the facts set out above, we rule that supplies of the Product are zero-rated supplies (taxable at 0%) pursuant to subsection 165(3) and section 1 of Part III of Schedule VI.
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
Generally, every recipient of a taxable supply made in Canada shall pay tax calculated at the rate of 5% on the value of the consideration for the supply (or 13% in the participating provinces of Nova Scotia, New Brunswick, and Newfoundland and Labrador) unless the supply is zero-rated. Zero-rated supplies are included in Schedule VI. The tax rate in respect of a zero-rated supply is 0%.
Under Part III of Schedule VI, certain supplies of basic groceries are zero-rated. Section 1 of Part III of Schedule VI 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 included in paragraphs (a) to (r) of that section.
As the Product is a food that is not included in any of paragraphs (a) to (r) of section 1 of Part III of Schedule VI, supplies of the Product are zero-rated under section 1 of the same Part and Schedule.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-954-5124. 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,
Nancy Jardine
Goods Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
UNCLASSIFIED
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