1 March 1995 GST/HST Interpretation 1995-03-01[3] - Tax Status of a Piece of Agricultural Equipment Called the

Dear XXXXX :

This is further to our telephone conversation of October 28, 1994 regarding the tax status of a piece of agricultural equipment called the XXXXX . As discussed enclosed is a video tape regarding the XXXXX and some descriptive literature on bale throwers and automatic bale wagons. Their purposes are to mechanically get a bale of hay of the field.

Subparagraph (iv) of Paragraph (e) of subsection (1) of section 1 of the Schedule zero-rates a "bale thrower" as haying equipment.

Although the XXXXX and the XXXXX are also haying equipment they are not listed in the zero-rating provisions found in subsection (1) of section 1 of the Schedule to the Agriculture and Fishing Property (GST) Regulations and is therefore taxable at 7%.

It is my understand that the list of prescribed property was developed to relieve cash flow problems encountered by farmers and was to be restricted to major items causing no additional compliance to general retailers.

For your information a second-hand bale thrower could be purchased for approximately $3,000.00. A round bale carriers or XXXXX is priced between XXXXX . The XXXXX is priced between XXXXX small pull-type) XXXXX (large self-propelled). This equipment is a major purchase to farmers and would not be available at any general retail store.

It would be appreciated if you could review the enclosed brochures and provide comments on whether this equipment could qualify as zero-rated haying equipment and if any additions could be made to the Agriculture and Fishing Property (GST) Regulations. Since these brochures and video are part of my library please return them to me when you are finished

If further information is required please contact me at 957-9152.

Yours truly

P. Lafrance
Tax Policy Officer
Goods and Health Care Services
Tax Policy - Special Sectors
GST Policy and Legislation