February 3, 1995
11845-1(PDL)
CN1039
XXXXX
I am responding to your letter dated December 15, 1994 addressed to Pamela Lafrance concerning the application of the GST to bee food.
This letter will confirm that bee food does not fall within the zero-rating provison of paragraph 1(2) of section 2 of the Schedule to the Agricultural and Fishing Property (GST) Regulations of the Excise Tax Act and is therefore taxable at 7%.
Paragraph 1(2) of section 2 of the Schedule to the Agricultural and Fishing Property (GST) Regulations zero-rates a supply of:
"Feed when sold in bulk quantities of at least 20 kg (44 lbs) or in bags that contain at least 20 kg (44 lbs), that
(a) is a complete feed, supplement, macro-premix or micro-premix, or mineral feed (other than a trace mineral salt feed) all as defined in the Feeds Regulations,
(b) is labelled in accordance with the Feeds Regulations, and
(c) is designed
(i) for a unique species or class of farm livestock, fish or poultry that are ordinarily raised or kept to produce or to be used as food for human consumption or to produce wool, or
(ii) for rabbits.
Under the Feeds Act livestock is defined as including horses, cattle, sheep, goats, swine, foxes, fish, mink, rabbits and poultry and includes such other creatures as may be designated by Regulation as livestock for the purposes of the Act. To date bees have not been designated by Regulations as livestock for purposes of the Feeds Act.
Since bees have not been designated as livestock in the Feeds Act, the feed for bees does not qualify as either a complete feed, macro-premix, micro-premix, supplement or mineral feed designed and labelled for farm livestock.
Paragraph 1(3)of section 2 of the Schedule to the Agricultural and Fishing Property (GST) Regulations zero-rates:
"By-products of the food processing industry and plant or animal products, when sold in bulk quantities of at least 20 kg (44 lbs) or in bags that contain at least 20 kg (44 lbs) and ordinarily used as feed, or as ingredients in feed, for farm livestock, fish or poultry, described in paragraph (2)(c)."
Supplies under paragraph 1(3) are zero-rated in all circumstances if they are ordinarily supplied as feed for farm livestock under paragraph 2(c). For example, where a by-product of the food processing industry is supplied ordinarily to feed zero-rated cattle, the supply is zero-rated in all cases regardless of the end use.
Therefore, if a good under pararaph 1(3) is ordinarily supplied as feed for zero-rated farm livestock and is also supplied as feed for bees, the supply is also zero-rated when supplied as feed for bees provided the quantity requirements in the provision are met.
You may contact Pamela Lafrance, Tax Policy Officer, Goods at (613) 957-9152 if additional information or assistance is required.
Yours truly
E. Vermes
A/Manager
Goods and Health Care
GST Policy and Legislation
| c.c.: |
District I & S Chief
XXXXX P. Lafrance |
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