12 June 2003 GST/HST Ruling 44189 - Tax Status of Various Salads

Dear XXXXX:

Thank you for your letter XXXXX (with attachments), concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the products described below which your client (XXXXX) will be importing into Canada.

Statement of Facts

Our understanding of the facts is as follows:

1. Rainbow Gelatin (Product A)

•   Product A ingredients include: gelatin, pineapple, peaches, pears, grapes, cherries and mandarin oranges.

•   Sold in 6/24 oz containers

•   Packaged in plastic ring mould with plastic lid

•   Stored in coolers to maintain shelf life of 180 days

2. Mandarin Orange Gelatin (Product B)

•   Product B ingredients include: orange gelatin and mandarin oranges

•   Sold in 6/24 oz containers

•   Packaged in plastic ring mould with plastic lid

•   Stored in coolers to maintain shelf life of XXXXX days

3. Raspberry Fruit Gelatin (Product C)

•   Product C ingredients include: gelatin and fruit cocktail

•   Sold in 6/24 oz containers

•   Packaged in plastic ring mould with plastic lid

•   Stored in coolers to maintain shelf life of XXXXX days

4. XXXXX (Product D)

•   Product D ingredients include: cooked enriched pasta, mayonnaise, celery, water, sour dressing, onions, sugar, corn syrup, salt, red bell peppers, mustard, vinegar, lemon juice and potassium sorbate.

•   Product D is described as "XXXXX".

•   Sold in bulk XXXXX lb containers

•   Packaged in cardboard carton

•   Stored in coolers to maintain shelf life of XXXXX days

5. Calamata Olives XXXXX (Product E)

•   Product E ingredients include: calamata olives, corn oil, red vinegar, freeze dried shallots, freeze dried scallions, spices and preservatives.

•   Sold in bulk XXXXX lb containers

•   Packaged in a plastic tub with plastic lid

•   Stored in coolers to maintain shelf life of XXXXX days

6. XXXXX Olive Salad XXXXX (Product F)

•   Product F ingredients include: pitted olives, manzanilla olives, red and green pepper strips, pepperonicini, celery, onions, oil, vinegar, spices and preservatives.

•   Sold in bulk XXXXX lb containers

•   Packaged in a plastic tub with plastic lid

•   Stored in coolers to maintain shelf life of XXXXX days

7. Red Roasted Peppers XXXXX (Product G)

•   Product G ingredients include: roasted red peppers, corn oil, spices and preservatives.

•   Sold in bulk XXXXX lb containers

•   Packaged in a plastic tub with plastic lid

•   Stored in coolers to maintain shelf life of XXXXX days

•   XXXXX

8. Hot Pepper Salad XXXXX (Product H)

•   Product H ingredients include: sliced hot cherry peppers, jalapeno slices, banana pepper chunks, field mixture of red and green bell pepper, waxed peppers, spices, oils and preservatives.

•   Sold in bulk XXXXX lb containers

•   Packaged in a plastic tub with plastic lid

•   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.

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 (ETA), 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".

For the purposes of this provision, salads are considered to include food containing ingredients (whether mixed or not) such as chopped, shredded, diced, sliced or pureed vegetables, meat, fish, egg or other food supplied with a dressing and/or seasoning(s). Single ingredient salads, which consist of one ingredient and a dressing or seasoning, are also considered to be salads. Salads also include gelatin salads. These salads commonly contain fruit and may be formed in the shape of a mould.

Products A, B and C are gelatin salads, Product D is a pasta salad, Products F and H are labelled as salads, Product G is XXXXX and both Products E and G consist of one ingredient and a dressing or seasoning. Therefore, all of the above listed products are considered salads for the purposes of paragraph 1(o.1) and as none of them are canned or vacuum sealed, they are taxable at 7% GST or 15% HST, as applicable.

Should you have any further questions or require clarification on the above matter, please do not hesitate to contact me at (613) 952-9218.

Yours truly,

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