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: 138074
November 30, 2011
Dear [Client]:
Subject:
GST/HST INTERPRETATION
Tax status on the supply of children's aprons
Thank you for your letter of August 23, 2011, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to tax status of children's aprons.
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 you have questions regarding the children's clothing rebate specifically related to aprons designed for children. In addition, you also requested clarification on who is the authority in determining the eligibility for such rebates. As there is no sample product with the request only an interpretation may be provided. For a ruling to be issued the facts of the case must be clearly defined, this would include a product being provided.
Interpretation Requested
You would like to know if a child's apron qualifies for the Point-of-Sale rebate for the provincial portion of the HST for children's clothing. You would also like to know whether the CRA or the relevant provincial authority is responsible for the administration of the rebate.
Interpretation Given
Based on the information provided, aprons designed and supplied for children are items to protect clothing. Therefore, aprons are not clothes and are not eligible for the Point-of-Sale rebate for children's clothing.
Section 1 of the Deduction for Provincial Rebate (GST/HST) Regulations (the Regulations) contains the definitions for the point-of-sale rebates. Under section 1, "children's clothing" means garments (other than garments of a class that is used exclusively in sports or recreational activities, costumes, children's diapers, or children's footwear) that are
(a) designed for babies, including baby bibs, bunting blankets, and receiving blankets;
(b) children's garments
(i) designed for girls and of a size not greater than the size that is girls' size 16 according to the national standard applicable to the garments,
(ii) designed for boys and of a size not greater than the size that is boys' size 20 according to the national standard applicable to the garments, or
(iii) if no national standard applies to the garments, designed for girls or boys and having a size designation of extra small, small, medium or large; or
(c) hosiery or stretchy socks, hats, ties, scarves, belts, suspenders, mittens and gloves in sizes and styles designed for children or babies.
Apron is a protective item worn over one's clothing. An apron, if designed and sized for children, is not considered to be children's clothing for purposes of the Point-of-Sale rebate
While the participating provinces determine the nature of the Point-of-Sale rebates they offer, CRA is responsible for administering the Point-of-Sale rebates.
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 Canada Revenue Agency 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 613-954-5124. 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,
Angela Stachowski
Goods Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
UNCLASSIFIED
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