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, 11th floor
320 Queen Street
Ottawa ON K1A 0L5
[Addressee]
Case Number: 211422
BN: […]
Dear [Client]:
Subject: GST/HST RULING
[…][Supplies of vegan jerky]
Thank you for your fax of [mm/dd/yyyy], concerning the application of the goods and services tax/harmonized sales tax (GST/HST) to […][vegan jerky] (the Product).
The HST applies in the participating provinces at the following rates: 13% in Ontario; and 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island. The GST applies in the rest of Canada at the rate of 5%.
All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.
STATEMENT OF FACTS
We understand the following:
- The Product is […] a [vegan] jerky. […]
- […][Information about the Product]
- […]
- […][Information about the Ingredients]
- A description of the Product provided on the website describes the texture of the Product as follows: […][chewy]
- The Product is available for individual purchase in a single serving, prepackaged re-sealable bag, with a total net weight of [#] grams. The Product is also sold via […], which is comprised of [#] individual bags of the Product being packaged in a large box (a case) and shipped to interested wholesalers. [...]
- Individual bags of the Product sell for $[...] each while a wholesale case of the Product sells for $[….].
RULING REQUESTED
You would like to confirm that the supply of the Product is a zero-rated supply under section 1 of Part III of Schedule VI to the ETA.
RULING GIVEN
Based on the facts set out above, we rule that the supply of the Product is a zero-rated supply under section 1 of Part III of Schedule VI to the ETA.
EXPLANATION
Generally, in accordance with section 165, 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 at the rate of 13% in Ontario; 15% in New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island) unless the supply is zero-rated. The tax rate in respect of a zero-rated supply is 0%. A zero-rated supply is a supply that is included in Schedule VI.
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 to be 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 none of the exclusionary paragraphs of section 1 of Part III of Schedule VI apply to the Product, the supply of the Product is zero-rated (subject to the GST/HST at the rate of 0%.)
In accordance with the qualifications and guidelines set out in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service, the Canada Revenue Agency (CRA) is bound by the ruling(s) given in this letter provided that: none of the issues discussed in the ruling(s) are currently under audit, objection, or appeal; no future changes to the ETA, regulations or the CRA’s interpretative policy affect its validity; and all relevant facts and transactions have been fully and accurately disclosed.
If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 289-356-2627. 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,
Zubair Patel
Senior Rulings Officer
Basic Groceries and Recaptured Input Tax Credits Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate
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