28 August 2000 GST/HST Interpretation 31860 - Whey Protein

Dear XXXXX:

Thank you for your letter of June 19, 2000, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to whey protein powders.

Interpretation Requested

You wish to know whether whey protein powder in vanilla, chocolate and unsweetened flavours are zero-rated under Section 1 of Part III of Schedule VI of the Excise Tax Act (ETA).

Interpretation Given

Generally, every recipient of a taxable supply made in Canada shall pay to Her Majesty in right of Canada tax in respect of the supply calculated at the GST rate of 7% (or HST rate of 15%, as applicable) on the value of the consideration for the supply. Where, however, a supply is a zero-rated supply, the tax rate in respect of that supply is 0%.

Powdered whey protein in vanilla, chocolate and unsweetened flavours that are mixed with water or other fluid to form a non-carbonated beverage are zero-rated.

We have received your request for a ruling on the product XXXXX and it has been assigned to an officer. Once our analysis is complete a response will be forthcoming.

The foregoing comments represent our general views with respect to the subject matter of your letter. These comments are not rulings and, in accordance with the guidelines set out in section 1.4 of Chapter 1 of the GST/HST Memoranda Series, do not bind the Canada Customs and Revenue Agency with respect to a particular situation.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at 952-9218.

Yours truly,

Kevin W. Smith
Goods Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate