Telephone: (613) 954-8585
Fax: (613) 990-1233
XXXXX 11850-2(sb)
Paragraph 1(d), Part III, Schedule VI
This is in reply to your letter of August 1, 1996 in which you inquired about the tax status of XXXXX dietary supplement, a sample of which was included with your letter.
Facts
The distributor of XXXXX supplies this product both in capsule and in powder.
When XXXXX is provided in powder, it has to be mixed with water or fruit juice.
When mixed with water, it produces a grass flavoured beverage.
The ingredients of which the powder is made includes fruit derivatives such as XXXXX[.]
Interpretation Requested
You inquired as to whether the dietary supplement XXXXX is excluded from zero-rating pursuant to paragraph 1(d) of Part III of Schedule VI of the Excise Tax Act (ETA).
Interpretation provided
As you are aware, supplies of food or beverages for human consumption are zero-rated under section 1 of Part III of Schedule VI of the ETA, unless they are specifically excluded under one of the paragraphs 1(a) to 1(r).
Pursuant to paragraph 1(d), powdered dietary supplements such as XXXXX will be considered taxable only where the beverage resulting from mixing the powder with water is fruit flavoured (contains no fruit juice and merely has an artificial fruit flavour) or contains fruit juice(s) and the fruit juice content is less than 25% by volume.
Given that the beverage resulting from mixing the XXXXX powder with water is not fruit flavoured and does not include fruit juice, it is zero-rated under section 1 of Part III of Schedule VI to the ETA.
I hope the above will be useful to you. If you require further information, please contact me at (613) 952-9580.
Yours truly,
Serge Bernier
Senior Policy Officer
Industries Unit
General Applications Division
GST Rulings and Interpretations
GOBI #: 1856(REG)
| c.c.: |
M. Matthews
S. Bernier File #: 11650-7 |
Email this Content