4 December 2002 GST/HST Ruling 42809 - Application of the GST/HST to Salads Sold in Plastic Tubs or Tetra Packs

Dear XXXXX:

Thank you for your letter dated XXXXX (with attachments), concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the products described below.

Statement of Facts

Our understanding of the facts is as follows:

1. XXXXX Salad (Product A)

•   Product A is described as XXXXX

•   Sold in bulk XXXXX containers

•   Containers are either plastic tubs or tetra packs

•   Suitable for immediate consumption

•   Stored in coolers to maintain shelf life of XXXXX days

2. XXXXX Salad (Product B)

•   Product B is described as: "XXXXX"

•   Sold in bulk XXXXX containers

•   Containers are either plastic tubs or tetra packs

•   Suitable for immediate consumption

•   Stored in coolers to maintain shelf life of XXXXX days

3. XXXXX Salad (Product C)

•   Product C is described as: "XXXXX"

•   Sold in bulk XXXXX containers

•   Containers are either plastic tubs or tetra packs

•   Suitable for immediate consumption

•   Stored in coolers to maintain shelf life of XXXXX days

Ruling Requested

You have requested a GST/HST ruling regarding the tax status of the above products.

Ruling Given

Based on the facts set out above, we rule that all of the above products are taxable at 7% (or 15% as applicable), pursuant to section 1(o.1) of Part III of Schedule VI to the Excise Tax Act (ETA).

This ruling is subject to the general limitations and qualifications outlined in section 1.4 of Chapter 1 of the GST/HST Memoranda Series. We are bound by this ruling provided that none of the above issues is currently under audit, objection, or appeal; that there are no relevant changes in the future to the Excise Tax Act, or to our interpretative policy; and that you have fully described all necessary facts and transaction(s) for which you requested a ruling.

Explanation

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%.

Paragraph 1(o.1) excludes from zero-rating supplies of "salads not canned or vacuum sealed".

As Products A, B and C all fall within this description they are excluded from zero-rating and are therefore taxable at 7% (or 15% as applicable).

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 954-5124.

Yours truly,

Nicole Thomas
Goods Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate