Zero-rated goods and services
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Zero-rated goods and services
Some goods and services are taxable at the rate of 0% (zero-rated). This means the GST/HST is not charged on the supply of these goods and services. However, a GST/HST registrant can claim an input tax credit (ITC) for the GST/HST paid or payable on expenses made to provide zero-rated sales or supplies.
Charities that use the net tax calculation for charities are restricted in the ITCs they can claim.
Examples of zero-rated goods and services are:
- basic groceries (such as, milk, bread, vegetables, meat, and fish);
- certain goods when they are exported outside Canada (goods otherwise taxable at the rate of 5%, 12%, 13% or 15% when supplied in Canada);
- prescription drugs;
- certain medical devices (such as, wheelchairs, hearing aids, eyeglasses, artificial limbs, canes, and crutches); and
- the rental of farmland to a registrant on a crop-share basis to the extent that the crop is zero-rated.
For more information, see GST/HST Memoranda Series Chapter 4, Zero-Rated Supplies.
Forms and publications
- Guide RC4022, General Information for GST/HST Registrants
- Guide RC4082, GST/HST Information for Charities
- GST/HST Memoranda Series Chapter 4, Zero-Rated Supplies
- Date modified:
- 2013-04-12