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.
[Addressee]
Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
Case Number: 135049
October 11, 2011
Dear [Client]:
Subject:
GST/HST RULING
Tax status of [...] [pesticide]
Thank you for your letter of March 29, 2011, regarding the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the supply of [...] [pesticide].
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.
Statement of Facts
We understand the relevant facts as follows.
1. The ruling request is in respect of the tax status of the supply of a pesticide named [...] (the Product).
2. The Product is registered with Pest Management Regulatory Agency (PMRA).
3. The Product is listed as a "restricted" product class as that designation is defined the Pest Control Products Regulation. Under the possible designations of a product other than "restricted" there is the "domestic" designation and the product at issue is not designated as "domestic".
4. The label of the Product states, under the subtitle [...], directions for [...] and the following indication [...].
RULINGS REQUESTED
You want to know if the supply of the Product is zero-rated.
Rulings Given
We rule that the supply of the Product is zero-rated pursuant to subsection 1(4) of the Agriculture and Fishing Property (GST/HST) Regulations.
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 their validity, and all relevant facts and transactions have been fully disclosed.
Explanation
Section 1 of the Schedule to the Agriculture and Fishing Property (GST/HST) Regulations provides for zero-rating the goods it describes. Subsection 1(4) of these Regulations describes the type of zero-rated good relevant to this ruling request as follows:
"Pesticides labelled in accordance with the Pest Control Products Regulations (made under the Pest Control Products Act) as having a purpose that includes agricultural use and a product class designation other than "Domestic".
The use for farm woodlots is recognised as an agricultural use and is one of the uses of the product indicated on the label. The Product also meets the condition of being designated under the Pest Control Products Regulations otherwise than as "Domestic", as indicated in more details at paragraph 3 of the Statement of Facts above. The Product thus meets the regulatory requirements for being zero-rated.
If you require clarification with respect to any of the issues discussed in this letter, please call me at (613) 952-8815.
Yours truly,
Raymond Labelle
Senior Rulings Officer
Goods Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
UNCLASSIFIED
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