29 March 1995 GST/HST Interpretation 1995-03-29[1] - Fertilizer Equipment

                                                                        March 29, 1995
 XXXXX                                                                                11845-1(PDL)
CN1139

This is to acknowledge receipt of the package of promotional literature for fertilizer equipment. As indicated in our telephone conversation you would like clarification on the application of the Goods and Services Tax (GST) to this equipment.

The promotional literature describes the following equipment:

•   Ramboc/Simonsen Bulk Feed Bodies

•   Tyler Fertilizer Tenders

•   Ramboc Anhydrous Ammonia Applicators

•   Ramboc Field Ready Nurse Tanks

•   Tyler Atlas 3-pt. Hitch Toolbars

•   Ramboc Field Ready Nurse Tanks

•   Ramboc Twin Delivery Units

•   Ramboc Anhydrous Ammonia Scales and Meters

•   Patriot Applicators

•   Tyler Fertilizer Spreaders

•   Tyler Truck Mounted Fertilizer Spreaders

•   Ramboc Fertilizer Spin Spreaders

•   Pro 550 Slide-in Sprayer

•   Eagle Truck Mounted Sprayer

•   Tyler Titan Chassis (liquid system)

•   Tyler Fluid-Air (Dry Applicator)

•   Ramboc Flotation Chassis

•   Ramboc Pull Type Air Machine (granular fertilizer)

The Agriculture and Fishing Property (GST) Regulations describe property related to agriculture that are zero-rated under section 10 of Part IV of Schedule VI to the Excise Tax Act when supplied by way of sale. Included in paragraph (1)(g), miscellaneous property, are (v.iii) self-propelled, tractor-mounted or pull-type field sprayers with a total tank capacity of at least 300 L (66 gallons).

(v.iii.1) farm-type granular fertilizer or pesticide applicators with an operational capacity of at least 0.2265m3 (8 cubic feet).

The following equipment falls within the requirements outlined in paragraph (1)(g) of the Agriculture and Fishing Property (GST) Regulations:

•   Ramboc Anhydrous Ammonia Applicators

•   Tyler Atlas 3-pt Hitch Toolbars

•   Tyler Fertilizer Spreaders

•   Ramboc Pull Type Air Machine (granular fertilizer)

•   Eagle Truck Mounted Fertilizer Sprayer - truck mounted

•   Patriot Applicators

It has been determined that the following equipment does not meet the requirements outlined in paragraph (1)(g) of the Agriculture and Fishing Property (GST) Regulations and are therefore taxable at 7%:

•   Ramboc/Simonsen Bulk Feed Bodies - used to transport/deliver

•   Tyler Fertilizer tenders - used to transport/deliver

•   Ramboc Twin Delivery Units - used to transport/deliver

•   Ramboc Field Ready Nurse Tank - a part for an applicator

•   Ramboc Anhydrous Ammonia Scales & Meters - self explanatory

•   Tyler Truck Mounted Fertilizer Spreaders - truck mounted

•   Ramboc Fertilizer Spin Spreaders - truck mounted

•   Pro 550 Slide-in Sprayer - truck mounted

•   Tyler Titan Floater Chassis - self explanatory

•   Tyler Fluid-Air Chassis - self explanatory

With respect to the Ramboc Flotation Chassis reference is made to the interpretation regarding the XXXXX. Where the chassis is supplied with equipment installed, the supply would be zero-rated under Paragraph 1(1)(g)(viii) or (viii.1).

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
Tax Policy
Goods and Health Care
GST Rulings and Interpretations