15 January 2001 General Information Letter 33905 - GENERAL INFORMATION LETTER Feed for Deer and Elk

Dear XXXXX:

Thank you for your facsimile of December 15, 2000, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to supplies of feed for deer and elk.

For the purposes of the Excise Tax Act (ETA), deer and elk are considered livestock that are "ordinarily raised or kept to produce, or to be used as, food for human consumption."

The supply of feed for deer and elk may be zero-rated pursuant to either section 2 or section 10 of Part IV of Schedule VI to the ETA.

Section 2 of Part IV of Schedule VI to the ETA zero-rates:

"A supply of

(a) grains or seeds in their natural state, treated for seeding purposes or irradiated for storage purposes,

(b) hay or silage, or

(c) other fodder crops, that are ordinarily used as, or to produce, food for human consumption or feed for farm livestock or poultry, when supplied in a quantity that is larger than the quantity that is ordinarily sold or offered for sale to consumers, but not including grains or seeds or mixtures thereof that are packaged, prepared or sold for use as feed for wild birds or as pet food."

Supplies of feed for deer and elk which fall within this provision are zero-rated.

To be zero-rated pursuant to section 10 of Part IV of Schedule VI, property (e.g. feed) must be a prescribed property included in the schedule to the Agriculture and Fishing Property (GST/HST) Regulations. Subsection 1(3) of the schedule prescribes;

"By-products of the food processing industry and plant or animal products, when sold in bulk quantities of at least 20 kg (44 lbs) or in bags that contain at least 20kg (44 lbs), that are ordinarily used as feed, or as ingredients in feed, for farm livestock, fish or poultry described in subparagraph (2)(c)(i) or for rabbits, ostriches, rheas, emus or bees."

Supplies of feed for deer and elk that fall within this subsection are prescribed property and are therefore zero-rated.

Although subsection 1(2) of the schedule prescribes certain supplies of feed, it does not apply to the supply of deer or elk feed. Elk and deer are not considered 'livestock' under the Feeds Regulations, 1983, therefore, supplies of feed for deer and elk are not a prescribed property and therefore not zero-rated.

As we discussed by telephone, requests for amendments to the ETA should be sent in writing to: Mr. Steven Tierney, Director, Sales Tax Division, Tax Policy Branch, Department of Finance, Ottawa, Ontario, K1A 0G5.

Should you have any further questions or require clarification on the above matter, please contact me at 952-9218.

Yours truly,

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