23 July 1997 GST/HST Interpretation HQR0000522 - GST/HST Status of the Supply of Ingredients in the Preparation of Food

                                                                        GST/HST Rulings and Interpretations Directorate
Place Vanier, Tower C, 9th Floor
 XXXXX                                                                                25 McArthur Road
 XXXXX                                                                                Vanier, Ontario
 XXXXX                                                                                K1A 0L5

Dear XXXXX

Thank you for your letter of January 21, 1997 concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) status of a product supplied by one of your clients called XXXXX . The HST is applicable to taxable supplies made in one of the participating provinces, which are: Newfoundland, Nova Scotia and New Brunswick. You supplied a sample package of the XXXXX for our examination. We apologize for the delay in responding to your letter.

Statement of Facts

Our understanding of the facts, based on the information provided, is as follows:

1. XXXXX

2. XXXXX

3. XXXXX

4. XXXXX

5. XXXXX

Interpretation Requested

You inquired as to whether the XXXXX will be zero-rated for GST/HST purposes.

Interpretation Given

As you have told us in your letter, the XXXXX are to be used as an ingredients in the preparation of food. Therefore the XXXXX qualify for a zero-rated tax status for GST/HST purposes under section 1 of Part III of Schedule VI to the Excise Tax Act because they are packaged, labelled and advertised as ingredients sold for baking.

The foregoing comments represent our general views with respect to the subject matter of your letter. Proposed amendments to the Excise Tax Act, if enacted, could have an effect on the interpretation provided herein. These comments are not rulings and, in accordance with the guidelines set out in section 1.4 of Chapter 1 of the GST Memoranda Series, do not bind the Department with respect to a particular situation.

For your convenience, find enclosed, copy of GST Memoranda Series (1.4).

We just want to remind you that the ministère du Revenu du Québec (MRQ) is administering the GST in the province of Québec. Therefore if you have any questions in the future regarding the GST, except those related to tax on importation of goods (as it was the case in your present request) which have to be answered by Revenue Canada , they should be sent to the following address :

Direction des lois sur les taxes
Direction générale de la législation
Ministère du Revenu du Québec
3800, rue de Marly, dépôt 64
Sainte-Foy (Québec)
G1X 4A5

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at 613-952-9588.

Yours truly,

Bruno Charron, CA
ASenior Rulings Officer
Industries Unit
General Operations and Border Issues Division
GST/HST Rulings and Interpretations Directorate

Legal References: paragraph 1(e) of Part III of Schedule VI