GST/HST Ruling

Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.

Excise and GST/HST Rulings
Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX
XXXXX

Case Number: 108962
Attention: XXXXX
October 17, 2008

Subject:

GST/HST RULING
XXXXX

Dear XXXXX:

Thank you for your XXXXX of XXXXX, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to XXXXX (the Product).

All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.

Statement of Facts

Our understanding of the facts is as follows:

1. The Products come in the form of XXXXX that are approximately XXXXX and XXXXX and are brittle and crispy in texture.

2. The Product is sold in cardboard boxes containing XXXXX packages of XXXXX each weighing XXXXX grams, for a total weight of XXXXX grams.

3. The ingredients of the Product are: XXXXX.

4. Labelling on cartons containing the Product describe it as "XXXXX."

Ruling Requested

You would like to know how the GST/HST applies to supplies of the Product.

Ruling Given

Based on the facts set out above, we rule that supplies of the Product are zero-rated pursuant to section 1 of Part III of Schedule VI.

This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.

Explanation

Generally, every recipient of a taxable supply made in Canada shall pay tax calculated at the rate of 5% on the value of the consideration for the supply (13% in the participating provinces of Nova Scotia, New Brunswick, and Newfoundland and Labrador) unless the supply is zero-rated. The tax rate in respect of a zero-rated supply is 0%. A zero-rated supply is a supply that is included in Schedule VI.

Under Part III of Schedule VI, certain supplies of basic groceries are zero-rated. Section 1 of Part III of Schedule VI, zero-rates supplies of food or beverages for human consumption, including sweetening agents, seasonings and other ingredients mixed with or used in the preparation of such food or beverages, other than supplies included in paragraphs (a) to (r) of that section.

The terms "food" and "beverage" are not defined in the ETA. However, the Canada Revenue Agency considers a product to be a food or beverage if an average consumer would recognize and purchase the product as such in the ordinary course of buying basic groceries. Consumers usually consume food and beverages to allay hunger or quench thirst, or for enjoyment rather than for therapeutic or preventative effects.

As none of the exclusions under section 1 of Part III of Schedule VI apply, supplies of the Product are zero-rated.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-952-9585. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.

Yours truly,

Ben Boboski
Goods Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate

UNCLASSIFIED

Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.

Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 16th floor
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX
Attention: XXXXX
Case Number: 109148Business Number: XXXXX

December 23, 2008

Dear XXXXX:

Subject:

GST/HST RULING
XXXXX

Thank you for your XXXXX of XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to XXXXX (the Product).

HST applies at the rate of 13% in the participating provinces of Nova Scotia, New Brunswick and Newfoundland and Labrador. GST applies at the rate of 5% in the remaining provinces and territories.

All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.

Statement of Facts

Our understanding of the facts is as follows:

1. The Product is being sold in Canada by XXXXX, but it is made by XXXXX.

2. XXXXX are available in a number of flavours and sizes (XXXXX). Rulings have been requested on this variety, XXXXX, as well as XXXXX and XXXXX.

3. The submission contained the Product proof (packaging label) and the information which follows was obtained from the proof.

4. The front of the packaging contains the following wording:

XXXXX

XXXXX

The front of the package also has a picture of the Product. XXXXX.

5. The back of the label contains the Nutrition Facts and Ingredients. XXXXX

6. The proof also has the following information about the Product:

XXXXX

7. Additional information about the Product was obtained from the Canadian web site for XXXXX

• XXXXX

• XXXXX

• XXXXX.

8. The Product is loosely packaged in a plastic bag and has a weight of XXXXXg.

Ruling Requested

You would like to know the GST/HST status of supplies of the Product.

Ruling Given

Based on the facts set out above, we rule that supplies of the Product are taxable at 5% GST or 13% HST pursuant to section 165.

This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.

Explanation

Generally, every recipient of a taxable supply made in Canada shall pay tax calculated at the rate of 5% on the value of the consideration for the supply (or 13% in the participating provinces of Nova Scotia, New Brunswick, and Newfoundland and Labrador) unless the supply is zero-rated. Zero-rated supplies are included in Schedule VI. The tax rate in respect of a zero-rated supply is 0%.

Under Part III of Schedule VI, certain supplies of basic groceries are zero-rated. Section 1 of Part III of Schedule VI, zero-rates supplies of food or beverages for human consumption, including sweetening agents, seasonings and other ingredients mixed with or used in the preparation of such food or beverages, other than supplies included in paragraphs (a) to (r) of that section.

In particular, paragraph 1(f) of Part III of Schedule VI excludes from zero-rating the following:

"chips, crisps, puffs, curls or sticks (such as potato chips, corn chips, cheese puffs, potato sticks, bacon crisps and cheese curls), other similar snack foods or popcorn and brittle pretzels, but not including any product that is sold primarily as a breakfast cereal."

GST/HST Memoranda Series 4.3, Basic Groceries outlines factors that are used to determine if a particular product is similar to a chip, crisp, puff, curl or stick as described under paragraph 1(f) of Part III of Schedule VI. These factors include the properties of the product (ingredients, flavours, texture, cooking process and appearance), its labelling, its packaging, and its marketing.

The Product in this case is considered to be a "similar snack food" for purposes of paragraph 1(f) of Part III of Schedule VI. The Product consists of small, crunchy baked XXXXX pieces which is available in some flavours similar to products enumerated in paragraph 1(f). The packaging of the Product is very similar to the type of packaging used for chips, crisps, puffs and similar snack foods. XXXXX. The Product name and labelling includes the term XXXXX

All of these factors combined lead to the conclusion that the Product is considered to be a "similar snack food" for purposes of paragraph 1(f) of Part III of Schedule VI. As such, the Product is excluded from section 1 of Part III of Schedule VI and is therefore, a taxable supply subject to the GST at 5% or HST at 13% (as applicable).

It should be noted that no one factor is determinative of the tax status of a product and changes in the labelling, packaging and/or marketing (e.g., a change in the product name or varieties offered) would not necessarily result in a different tax status. All factors must be considered in determining whether a product falls within paragraph 1(f) of Part III of Schedule VI.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-954-5124. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.

Yours truly,

Nancy Jardine
Goods Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate

UNCLASSIFIED

Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.

Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 16th floor
320 Queen Street,
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
Case Number: 109565
Business Number: XXXXX

December 3, 2008

Dear XXXXX

Subject:

GST/HST RULING
XXXXX

Thank you for your XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to XXXXX (the Product).

HST applies at the rate of 13% in the participating provinces of Nova Scotia, New Brunswick and Newfoundland and Labrador. GST applies at the rate of 5% in the remaining provinces and territories.

All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.

Statement of Facts

Our understanding of the facts is as follows:

1. The request for a ruling on the Product contained a submission from XXXXX, as the Product is manufactured by XXXXX.

2. XXXXXalso included proof of the Product, as well as an advertisement that appeared on a former XXXXX.

3. XXXXX describes the Product as a XXXXX cereal product, which comes in various flavours, and is marketed as a XXXXX for toddlers XXXXX.

4. The Product proof (packaging label) contains the following information:

• XXXXX.

XXXXX

The ingredients of the Product are as follows XXXXX

5. The Product is packaged in a XXXXX container and has a net weight of XXXXXg.

6. XXXXX the Product will be placed in the baby food section of the retail store and not the snack food section.

Ruling Requested

You would like to confirm the position that the Product is not a product which would be excluded from zero-rating by paragraph 1(f) of Part III of Schedule VI, but would be zero-rated under section 1 of Part III of Schedule VI.

Ruling Given

Based on the facts set out above, we rule that the Product is not excluded by any of paragraphs 1(a) to (r) of Part III of Schedule VI and thus supplies of the Product are zero-rated supplies pursuant to section 1 of the same Part and Schedule.

This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.

Explanation

Generally, every recipient of a taxable supply made in Canada shall pay tax calculated at the rate of 5% on the value of the consideration for the supply (13% in the participating provinces of Nova Scotia, New Brunswick, and Newfoundland and Labrador) unless the supply is zero-rated. The tax rate in respect of a zero-rated supply is 0%. Taxable supplies that are zero-rated for GST/HST purposes are described in Schedule VI.

Under Part III of Schedule VI, certain supplies of basic groceries are zero-rated. Section 1 of Part III of Schedule VI, zero-rates supplies of food or beverages for human consumption, including sweetening agents, seasonings and other ingredients mixed with or used in the preparation of such food or beverages, other than supplies included in paragraphs (a) to (r) of that section.

Paragraph 1(f) of Part III of Schedule VI excludes from zero-rating supplies of chips, crisps, puffs, curls or sticks (such as potato chips, corn chips, cheese puffs, potato sticks, bacon crisps and cheese curls), other similar snack foods or popcorn and brittle pretzels (but not including any product that is sold primarily as a breakfast cereal).

GST/HST Memoranda Series 4.3, Basic Groceries outlines factors that are used to determine if a particular product is similar to a chip, crisp, puff, curl or stick as described under paragraph 1(f) of Part III of Schedule VI. These factors include the properties of the product (ingredients, flavours, texture, cooking process and appearance), its labelling, its packaging, and its marketing.

While the Product may have some of the properties similar to those listed in GST/HST Memoranda Series 4.3, the physical properties, packaging and marketing are different from those generally used for "other similar snack food". Specifically, the Product does not have the physical properties (ingredients, flavouring, texture and shape) usually associated with snack food. The Product is packaged in a hard plastic container and is marketed in the baby food section of retail outlets as XXXXX for toddlers.

Based upon the facts of this case, the Product is not an "other similar snack food" as listed in paragraph 1(f) of Part III of Schedule VI. The supply of the Product is zero-rated as it does not fall within any of the exclusions to section 1 of Part III of Schedule VI.

It should be noted that no one factor is determinative of the tax status of a product and changes in the labelling, packaging and/or marketing (e.g., a change in the product name or varieties offered) would not necessarily result in a different tax status. All factors must be considered in determining whether a product falls within paragraph 1(f) of Part III of Schedule VI.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-954-5124. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.

Yours truly,

Nancy Jardine
Goods Unit
General Operations and Borders Issues Division
Excise and GST/HST Rulings Directorate

UNCLASSIFIED

Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.

Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 16th floor
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX
Attention: XXXXX
Case Number: 109783
Business Number: XXXXX

December 19, 2008

Dear XXXXX:

Subject:

GST/HST RULING
XXXXX

Thank you for your XXXXX of XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to XXXXX (the Product).

HST applies at the rate of 13% in the participating provinces of Nova Scotia, New Brunswick and Newfoundland and Labrador. GST applies at the rate of 5% in the remaining provinces and territories.

All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.

Statement of Facts

Our understanding of the facts is as follows:

1. The Product is made by the XXXXX.

2. The submission contained the packaging proof, Product ingredients and a picture of the Product. The XXXXX pieces are XXXXX in shape, with XXXXX visible on the surface of the pieces.

3. The ingredients of the Product are: XXXXX

4. The packaging contains the following wording:

• XXXXX

• XXXXX

• XXXXX

• XXXXX

5. The Product consists of XXXXX XXXXX packaged in a plastic bag which is XXXXX. Each XXXXX weighs XXXXXg, for a total package weight of XXXXXg. The expected life of the Product is XXXXX days.

6. The web site for the XXXXX contained the following additional information about the Product:

• XXXXX

• XXXXX

• XXXXX

Ruling Requested

You would like to know the GST/HST status of supplies of the Product.

Ruling Given

Based on the facts set out above, we rule that supplies of the Product are zero-rated supplies (taxable at 0%) pursuant to subsection 165(3) and section 1 of Part III of Schedule VI.

This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.

Explanation

Generally, every recipient of a taxable supply made in Canada shall pay tax calculated at the rate of 5% on the value of the consideration for the supply (or 13% in the participating provinces of Nova Scotia, New Brunswick, and Newfoundland and Labrador) unless the supply is zero-rated.

Zero-rated supplies are included in Schedule VI. The tax rate in respect of a zero-rated supply is 0%.

Under Part III of Schedule VI, certain supplies of basic groceries are zero-rated. Section 1 of Part III of Schedule VI zero-rates supplies of food or beverages for human consumption, including sweetening agents, seasonings and other ingredients mixed with or used in the preparation of such food or beverages, other than supplies included in paragraphs (a) to (r) of that section.

Paragraph 1(m) of Part III of Schedule VI excludes from zero-rating:

"Cakes, muffins, pies, pastries, tarts, cookies, doughnuts, brownies, croissants with sweetened filling or coating, or similar products where

(i) they are prepackaged for sale to consumers in quantities of less than six items each of which is a single serving, or

(ii) they are not prepackaged for sale to consumers and are sold as single servings in quantities of less than six,

but not including bread products, such as bagels, English muffins, croissants or bread rolls, without sweetened filling or coating;"

For GST/HST purposes, generally a single serving of cake, pie, muffin, pastry, tart, cookie, doughnut, brownie, croissant with a sweetened filling or coating or a similar product, is a serving weighing less than 230g.

Paragraph 112 of the GST/HST Memoranda Series 4.3, Basic Groceries, states that bread includes, but is not limited to, such things as flour and corn tortillas, pita bread, naan bread, rolls, flatbread, foccacia, croissants and bagels. Pita bread is thus a bread product under paragraph 1(m). This paragraph allows bread products to remain a basic grocery product and thus zero-rated, when it has no sweetened filling or coating.

As the Product is a bread product which does not have a sweetened filling or coating, it will thus not be excluded from zero-rating by paragraph 1(m) of Part III of Schedule VI. As the Product is a food that is not included in any of paragraphs (a) to (r) of section 1 of Part III of Schedule VI, supplies of the Product are zero-rated under section 1 of the same Part and Schedule.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-954-5124. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.

Yours truly,

Nancy Jardine
Goods Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate

UNCLASSIFIED

Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.

Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX

Case Number: 110512
Attention: XXXXX
December 15, 2008

Dear XXXXX:

Subject:

GST/HST RULING
Temporary importation of XXXXX

Thank you for your XXXXX of XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the temporary importation XXXXX.

HST applies at the rate of 13% in the participating provinces of Nova Scotia, New Brunswick and Newfoundland and Labrador. GST applies at the rate of 5% in the remaining provinces and territories.

All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.

Statement of Facts

Our understanding of the facts is as follows:

1. Your client, XXXXX, is a non-resident located in XXXXX and is in the business of XXXXX.

2. XXXXX is planning to temporarily import XXXXX.

3. XXXXX.

4. The XXXXX are not for sale, for lease or for further manufacturing or further processing.

5. The Canada Border Services Agency has determined that the conditions of item 38 of the schedule to the Temporary Importation (Excise Levies and Additional Duties) Regulations are met for the temporary importation of the XXXXX.

Ruling Requested

You would like to know whether the temporary importation of XXXXX by XXXXX is a non-taxable importation for GST/HST purposes.

Ruling Given

Based on the facts set out above, we rule that the importation of the XXXXX by XXXXX is a non-taxable importation for GST/HST purposes pursuant to section 8 of Schedule VII to the Excise Tax Act (ETA), section 213 of the ETA and subparagraph 3(i)(ii) of the Non-Taxable Imported Goods (GST/HST) Regulations.

This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions.

Explanation

Generally, all goods imported into Canada are taxable for GST/HST purposes unless specifically relieved under section 213 of the ETA. Importations of goods relieved of tax under section 213 of the ETA are set out in Schedule VII to the ETA. Section 8 of Schedule VII to the ETA deems prescribed goods that are imported in prescribed circumstances into Canada to be non-taxable for GST/HST purposes. Subparagraph 3(i)(ii) of the Non-Taxable Imported Goods (GST/HST) Regulations includes goods described in item 38 of the schedule to the Temporary Importation (Excise Levies and Additional Duties) Regulations when a non-resident person imports the goods in circumstances where the terms and conditions of the regulations have been met.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-737-7856. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.

Yours truly,

Donato Licursi
Border Issues Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate

UNCLASSIFIED

Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.

Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX
XXXXX

Case Number: 107129
Attention: XXXXX
November 28, 2008

Dear Ms. XXXXX:

Subject:

GST/HST RULING
Application of the GST/HST to the supply of XXXXX

Thank you for XXXXX of XXXXX, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the supply of XXXXX (the Product).

All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.

Statement of Facts

Our understanding of the facts is as follows:

1. The Product is sold in multiples of XXXXX - XXXXX mL containers pre-packaged by the producer.

2. The Product label states: XXXXX

3. The ingredients of the Product are: XXXXX

4. XXXXX (the Producer) Website states: XXXXX

5. The Producer has stated that the Product is a formulated liquid diet as defined by the Food and Drug Act Regulations, and that it meets the compositional requirements under that Act.

6. XXXXX

Ruling Requested

You would like to know how the GST/HST applies to supplies of the Product.

Ruling Given

Based on the facts set out above, we rule that supplies of the Product are zero-rated pursuant to section 1 of Part III of Schedule VI.

This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.

Explanation

Generally, every recipient of a taxable supply made in Canada shall pay tax calculated at the rate of 5% on the value of the consideration for the supply (13% in the participating provinces of Nova Scotia, New Brunswick, and Newfoundland and Labrador) unless the supply is zero-rated. The tax rate in respect of a zero-rated supply is 0%. Taxable supplies that are zero-rated for GST/HST purposes are described in Schedule VI.

Under Part III of Schedule VI, certain supplies of basic groceries are zero-rated. Section 1 of Part III of Schedule VI zero-rates supplies of food or beverages for human consumption, including sweetening agents, seasonings and other ingredients mixed with or used in the preparation of such food or beverages, other than supplies included in paragraphs (a) to (r) of that section.

The terms "food" and "beverage" are not defined in the ETA. However, the Canada Revenue Agency (CRA) considers a product to be a food or beverage if an average consumer would recognize and purchase the product as such in the ordinary course of buying basic groceries. Consumers usually consume food and beverages to allay hunger or thirst or for enjoyment rather than for therapeutic or preventative effects.

The CRA's approach is based on the views of an "average consumer". Products that meet the special dietary needs of certain segments of the population, such as those with restricted or special purpose diets, high performance athletes and dieters may not necessarily be viewed by the average consumer as food or beverages. These types of products are commonly referred to as dietary supplements.

However, the CRA's approach would not preclude a product from zero-rating that is specially processed or formulated to meet the dietary requirements of a person in whom a physical or physiological condition exists as a result of a disease, disorder or injury or whom a particular effect is to be obtained by a controlled intake of food. This includes products such as formulated liquid diets, provided these products are intended to allay hunger or thirst or for enjoyment through the digestive system rather than for therapeutic effects. The Regulations under The Food and Drug Act provide that "formulated liquid diet" means a food that is sold for consumption in liquid form, and is sold or represented as a nutritionally complete diet for oral or tube feeding of a person. Further, formulated liquid diets have specific caloric, fat content and vitamin and mineral requirements. Although these products are different from what an ordinary consumer would view as food, their main purpose is to provide nutrition and nourishment for people with a medical condition.

Products that qualify as formulated liquid diets under the Food and Drug Act and Regulations are considered to be basic groceries for GST/HST purposes. All supplies of formulated liquid diets are zero-rated (except when sold from a vending machine). We are of the view that the Product is a formulated liquid diet and as such its supplies are zero-rated.

In determining the tax status of a particular product, the composition of each particular product in a product line must be considered to determine if each particular product is, for example, a formulated liquid diet, meal replacement, nutritional supplement, dietary supplement, or food or beverage.

If a product is represented as being a formulated liquid diet as evidenced by the label, the CRA will accept this information as fact in determining its tax status. If, however, after a ruling has been issued, it is determined that a product is in fact not a formulated liquid diet, the ruling will not be valid in accordance with GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-952-9585. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.

Yours truly,

Ben Boboski
Goods Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate

UNCLASSIFIED

Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.

Excise and GST/HST Rulings
Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX

Case Number: 107587Business Number: XXXXX
Attention: XXXXX
November 13, 2008

Subject:

GST/HST RULING
XXXXX

Dear XXXXX:

Thank you for your XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to XXXXX (the Product).

HST applies at the rate of 13% in the participating provinces of Nova Scotia, New Brunswick and Newfoundland and Labrador. GST applies at the rate of 5% in the remaining provinces and territories.

All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.

Statement of Facts

Our understanding of the facts is as follows:

1. XXXXX (the Product) is manufactured by XXXXX.

2. The Product is sold in an assorted format with XXXXX servings of XXXXXg each, packaged in corrugated card by the manufacturer. In the XXXXX package format there are XXXXX varieties: XXXXX.

3. The base ingredients for each flavour are XXXXX

4. The web site for XXXXX provides the following information about the Product:

XXXXX

XXXXX

Ruling Requested

You would like to know how the GST/HST applies to supplies of the Product in multiples of XXXXX -XXXXXg containers pre-packaged by the manufacturer.

Ruling Given

Based on the facts set out above, we rule that supplies of the Product in multiples of XXXXX-XXXXXg containers pre-packaged by the manufacturer are zero-rated under section 1 of Part III of Schedule VI.

This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.

Explanation

Generally, every recipient of a taxable supply made in Canada shall pay tax calculated at the rate of 5% on the value of the consideration for the supply (or 13% in the participating provinces of Nova Scotia, New Brunswick, and Newfoundland and Labrador) unless the supply is zero-rated. Zero-rated supplies are included in Schedule VI. The tax rate in respect of a zero-rated supply is 0%.

Under Part III of Schedule VI, certain supplies of basic groceries are zero-rated. Section 1 of Part III of Schedule VI zero-rates supplies of food or beverages for human consumption, including sweetening agents, seasonings and other ingredients mixed with or used in the preparation of such food or beverages, other than supplies included in paragraphs (a) to (r) of that section.

In determining the tax status of a particular product, it is the composition of each particular product that must be considered to determine if a particular product is a food or beverage for human consumption which is eligible for zero-rating. Consideration was given that the Product may be yoghurt, as yoghurt supplied in all sizes of servings is generally zero-rated for purposes of section 1 of Part III of Schedule VI, unless there are other exclusions in paragraphs 1(a) to (r) that apply.

Yoghurt is a dairy product produced by bacterial fermentation of milk. Fermentation of the milk sugar (lactose) produces lactic acid which acts on milk protein to give yoghurt its texture and its characteristic tang. Generally, "XXXXX" is prepared using XXXXX, yoghurt bacteria and sometimes additional sweetener, like fructose, glucose, honey or raw sugar. As the Product is not made with milk, we do not consider it to be yoghurt.

Supplies of beverages (other than unflavoured milk), or pudding, including flavoured gelatine, mousse, flavoured whipped dessert product or any other products similar to pudding are excluded from zero-rating under paragraph 1(n) of Part III of Schedule VI, except

(i) when prepared and pre-packaged specially for consumption by babies,

(ii) when sold in multiples, pre-packaged by the manufacturer or producer, of single servings, or

(iii) when the cans, bottles or other primary containers in which the beverages or products are sold contain a quantity exceeding a single serving.

Consideration was given to the Product being included in "other products similar to pudding". The definition of pudding is a dessert of a soft, spongy, or thick creamy consistency. The Product is described as similar in texture and consistency to dairy yoghurt, which has a custard-like consistency. Therefore, the Product is considered to be an "other product similar to pudding" based upon its texture.

As the Product is considered to be similar to pudding, the supply will fall under subparagraph 1(n)(ii) of Part III of Schedule VI. This paragraph does not exclude from zero-rating products similar to pudding when such products are sold in multiples of single servings pre-packaged by the manufacturer. For puddings and similar products, a single serving includes all servings weighing less than 425 grams. The Product is prepackaged by the manufacturer in XXXXX x XXXXXg containers.

As the Product is a food that is not included in any of paragraphs (a) to (r) of section 1 of Part III of Schedule VI, supplies of the Product are zero-rated under section 1 of Part III of Schedule VI.

Please note that the above ruling applies to the supply of the Product when sold in multiples prepackaged by the manufacturer. If the Product is sold in other formats, the GST/HST application may change.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-954-5124. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.

Yours truly,

Nancy Jardine
Goods Unit
General Operations and Borders Issues Division
Excise and GST/HST Rulings Directorate

UNCLASSIFIED

Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.

Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX
XXXXX
Attention: XXXXX
XXXXX
Case Number: 106218

August 5, 2008

Subject:

GST/HST RULING
XXXXX

Dear XXXXX:

Thank you for your letter XXXXX, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to XXXXX (the Product).

All legislative references are to the Excise Tax Act (ETA) and the regulations thereunder, unless otherwise specified.

Statement of Facts

Our understanding of the facts is as follows:

1. The Products come in the form of thin sticks that are approximately XXXXX long and XXXXX in diameter and are brittle and crispy in texture.

2. The Product is sold in cardboard boxes containing XXXXX packages of sticks each weighing XXXXX grams, for a total weight of XXXXX grams.

3. The ingredients of the Product are: XXXXX.

4. Labelling on cartons containing the Product describe it as "XXXXX."

Ruling Requested

You would like to know how the GST/HST applies to supplies of the Product.

Ruling Given

Based on the facts set out above, we rule that supplies of the Product are zero-rated pursuant to section 1 of Part III of Schedule VI.

This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.

Explanation

Generally, every recipient of a taxable supply made in Canada shall pay tax calculated at the rate of 5% on the value of the consideration for the supply (13% in the participating provinces of Nova Scotia, New Brunswick, and Newfoundland and Labrador) unless the supply is zero-rated. The tax rate in respect of a zero-rated supply is 0%. A zero-rated supply is a supply that is included in Schedule VI.

Under Part III of Schedule VI, certain supplies of basic groceries are zero-rated. Section 1 of Part III of Schedule VI, zero-rates supplies of food or beverages for human consumption, including sweetening agents, seasonings and other ingredients mixed with or used in the preparation of such food or beverages, other than supplies included in paragraphs (a) to (r) of that section.

The terms "food" and "beverage" are not defined in the ETA. However, the Canada Revenue Agency considers a product to be a food or beverage if an average consumer would recognize and purchase the product as such in the ordinary course of buying basic groceries. Consumers usually consume food and beverages to allay hunger or quench thirst, or for enjoyment rather than for therapeutic or preventative effects.

As none of the exclusions under section 1 of Part III of Schedule VI apply, supplies of the Product are zero-rated.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-952-9585. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.

Yours truly,

Ben Boboski
Goods Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate

UNCLASSIFIED

Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.

Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX
XXXXX
Attention: XXXXX
Case Number 106868
Business Number: XXXXX

December 19, 2008

Dear Sir/Madam:

Subject:

GST/HST RULING
XXXXX

Thank you for your XXXXX of XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to sales of undivided interests in real property by XXXXX to various other parties.

All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.

Statement of Facts

We understand the facts to be as follows:

1. XXXXX is offering to sell to participants XXXXX undivided interests ("UDIs") in land it owns in XXXXX.

2. The purpose of the sale is to raise funds for the development of the property.

3. The property, currently vacant land, is to be developed into commercial use lots and resold at the completion of the development (the "Development").

4. A copy of the proposed offering memorandum was submitted, including XXXXX, Offer to Purchase and Contractual Joint Venture Agreement.

5. Each participant will purchase a minimum of XXXXX UDI from XXXXX.

6. The subscriptions are held in trust until the closing date.

7. The Offer to Purchase ("Offer") contains the Contractual Joint Venture Agreement ("JV Agreement") on XXXXX of the Offer. By signing the Offer, the participants accede to both the JV Agreement and the joint venture election under subsection 273(1), as set out in XXXXX of the Offer.

8. XXXXX will prepare the election forms for each participant, dated at the closing date.

Ruling Requested

You would like to know whether the election applies to the sale of the UDIs by XXXXX to the participants.

Ruling Given

Based on the facts set out above, we rule that the election does not apply to the sale of the UDIs by XXXXX to the participants.

This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.

Explanation

Subsection 273(1) allows an operator (in this case XXXXX) and a participant (in this case the purchasers of the undivided interests) to make an election where an eligible activity is undertaken as a joint venture. Where the election is made, paragraph 273(1)(a) deems all the properties and services that are acquired and supplied by the operator under the joint venture agreement on behalf of the participants to be acquired and supplied only by the operator. The operator accounts for the tax collected on taxable supplies and claims input tax credits for the tax paid on purchases. Paragraph 273(1)(c) deems any supplies of property or services made under the agreement by the operator to the participants not to be supplies. The election is available for the exploration or exploitation of mineral deposits or for a prescribed activity. The activities prescribed by regulation are activities relating to the construction of real property and the earning of income from the supply of real property by way of sale, lease, licence or similar arrangement (with certain exceptions).

The development of the lots and their subsequent sale would likely be a prescribed activity under paragraph 3(1)(b) of the Joint Venture (GST/HST) Regulations, which reads as follows:

"(b) the exercise of the rights or privileges, or the performance of the duties or obligations, of ownership of an interest in real property, including related construction or development activities, the purpose of which is to derive revenue from the property by way of sale, lease, licence or similar arrangement."

You believe that the sale of an UDI by XXXXX to a participant in the Development would be deemed not to be a supply pursuant to paragraph 273(1)(c). However, it is our view that the election does not apply to that transaction.

When XXXXX first acquired the land, there would have been no joint venture agreement in effect since the JV Agreement is only entered into when a participant purchases their interest. The land would not have been acquired by XXXXX as operator of the joint venture. Where XXXXX supplies interests in the land to each of the participants, the supplies are made by XXXXX on XXXXX own account and XXXXX is required to collect and account for tax on these supplies except where the participants would be allowed to self-assess the tax pursuant to subsections 221(2) and 228(4). Based on our review of the JV Agreement and principles governing joint ventures, the initial supply by XXXXX to the participants of an interest in the land is made outside of the joint venture activity.

A purchaser of an UDI is not a participant in the Development until they make a contribution of assets towards the activity of the Development. The participant cannot make a contribution until he/she is the owner of an interest in the land that becomes his/her contribution. The supply by XXXXX of the interest in the land to the participant occurs, by definition, before the participant can contribute their interest to the Development. Therefore, the supply is not covered by the election.

Our position is supported by the wording of XXXXX of the JV Agreement, which states:

XXXXX

The contributions by the participants to the Development are the UDIs. The purpose of the Development is generally to develop the land to the point where it can be subdivided and sold. The purchase of an UDI is a preliminary step to the participation by the participant in the Development. It is after the acquisition of an UDI that the purchasers are truly participants in the Development. The sale by XXXXX of an UDI is the means by which the participants can acquire their interest and thereby make their contribution to the Development.

The money paid to purchase the UDI is not the contribution to the Development. The participants are paying money in order to acquire legal title to the land, albeit in the form of a tenancy in common along with the other participants. As noted above, the land is the subject matter of the Development, and it is the participants' agreement to make their interests subject to the JV Agreement that is their contribution to the Development.

Subsection 273(1)(c) was not meant to address the situation where an operator supplies property it already owns to participants coming into a joint venture which then becomes the subject matter of the joint venture. Such a supply should be more correctly seen as a supply made on the operator's own account and not as part of the activities for which the joint venture was formed.

You referred to our response to a question posed by XXXXX in a meeting in XXXXX as supporting the position that the election will deem the sale of an UDI not to be a supply. Our response should not read as implying that paragraph 273(1)(c) applies to your situation.

EXISTENCE OF A JOINT VENTURE

There is another matter which we wish to draw to your attention that was not raised in your submission. Upon reviewing the JV Agreement, we have considerable doubt whether the Development is truly a joint venture. There are a number of indicia of a joint venture which usually must be present to characterize an enterprise as a joint venture. One of these is a right of mutual control or management of the enterprise by all the participants. In your case, XXXXX is given absolute control over the Development. XXXXX of the JV Agreement provides that:

XXXXX

The items that follow encompass whatever would be necessary to proceed with the development and sale of the land and include under XXXXX. The document also includes, XXXXX giving it the authority to deal in the land. XXXXX of the Offering Memorandum states that XXXXX. It also states that XXXXX of the Offering Memorandum states that the signing of the agreement will XXXXX.

Should it be determined upon an audit that the Development is not a joint venture, the election would not be a valid election. This would be another reason why the sale of an UDI to a participant would not be covered by subsection 273(1).

The management fee paid to XXXXX pursuant to XXXXX of the JV Agreement is consideration for a taxable supply and absent a valid election, XXXXX would be required to collect and remit tax from each participant, while each participant, if registered, could claim an input tax credit to recover the tax.

Any purchases and sales made by XXXXX on behalf of the participants would not be deemed to have been made by XXXXX. Generally, where a joint venture exists but no election can be or has been made, each participant (including the operator if it is a participant with an interest) must account for the tax on its share of purchases and supplies made on its behalf by the operator, unless there is an agency relationship between the operator and the participants, as explained below. Where no joint venture exists, the relationship of the parties to each other must be determined. To the extent that XXXXX retains an interest in the property, it is a co-owner with the other participants. This does not however, address the question of in what capacity XXXXX is acting when it purchases goods or services or makes supplies as part of the Development. One possibility is that it is acting as agent. XXXXX of the JV Agreement expressly makes XXXXX the irrevocable agent of the participants in carrying out its duties under the agreement. Pursuant to subsection 177(1.1), XXXXX and the participants could, if applicable, elect to have XXXXX account for any tax collectible on supplies made through XXXXX. If the election is not made, or XXXXX is not an agent, each participant would have to account for any tax collectible on supplies made by XXXXX. Depending on the circumstances, it might be the case that when the land is eventually sold, third party purchasers would be in a situation to self-assess, so no tax would be collectible by the participants pursuant to subsection 221(2).

As for purchases made by XXXXX, the agency election does not apply to purchases made by an agent. It would be a question of fact whether a particular purchase was made by XXXXX on its own account for which it would claim an input tax credit, or as agent of the participants, in which case each participant would claim a pro-rata share of the input tax credit.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-957-8253. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.

Yours truly,

Gunar Ozols
Goods Unit
General Operations and Border Issues Division
Excise and GST/HST Rulings Directorate

UNCLASSIFIED

Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.

Excise and GST/HST Rulings
Directorate
Place de Ville, Tower A, 15th floor
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX

Case Number: 106971
Business Number: XXXXX
Attention: XXXXX
XXXXX
October 15, 2008

Subject:

GST/HST RULING
XXXXX

Dear XXXXX:

Thank you for your XXXXX of XXXXX, concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to XXXXX (the "Product").

All legislative references are to the Excise Tax Act (ETA) and the regulations thereunder, unless otherwise specified.

Statement of Facts

Our understanding of the facts is as follows:

1. According to XXXXX for XXXXX Iced Tea.

2. XXXXX.

3. The Product is packaged XXXXX

4. The Product's ingredients include XXXXX tea. XXXXX.

Ruling Requested

You would like to know how the GST/HST applies to supplies of the Product.

Ruling Given

Based on the facts set out above, we rule that supplies of the Product are zero-rated under section 1 of Part III of Schedule VI.

This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.

Explanation

Section 1 of Part III of Schedule VI zero-rates supplies of food or beverages for human consumption and sweetening agents, seasonings and other ingredients mixed with or used in the preparation of such foods and beverages, unless one of the exceptions set out in paragraphs 1(a) through 1(r) apply.

Paragraph 1(d) of Part III of Schedule VI excludes from zero-rating, the supply of non-carbonated fruit juice or fruit-flavoured beverages, other than milk-based beverages, that contain less than 25% by volume of

(i) a natural fruit juice or combination of natural fruit juices, or

(ii) a natural fruit juice or combination of natural fruit juices that have been reconstituted into the original state,

or goods that, when added to water, produce a beverage, noted above.

Iced tea mixes, regardless of the flavour, are not considered to be goods that, when added to water, produce a beverage noted in the provision above. Iced tea mixes are considered teas. Therefore, the exception in paragraph 1(d) of Part III of Schedule VI is not applicable and supplies of the Product are zero-rated.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at XXXXX. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.

Yours truly,

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

UNCLASSIFIED

Please note that the following document, although correct at the time of issue, may not represent the current position of the Agency. / Veuillez prendre note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'Agence.

Excise and GST/HST Rulings Directorate
Place de Ville, Tower A, 16th floor
320 Queen Street
Ottawa ON K1A 0L5
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
Case Number: 107022
Business Number: XXXXX

December 2, 2008

Dear XXXXX:

Subject:

GST/HST RULING
XXXXX Muffin Bar (XXXXX)

Thank you for your XXXXX of XXXXX concerning the application of the Goods and Services Tax (GST)/Harmonized Sales Tax (HST) to the XXXXX Muffin Bars - XXXXX(the Product).

HST applies at the rate of 13% in the participating provinces of Nova Scotia, New Brunswick and Newfoundland and Labrador. GST applies at the rate of 5% in the remaining provinces and territories.

All legislative references are to the Excise Tax Act (ETA) unless otherwise specified.

Statement of Facts

Our understanding of the facts is as follows:

1. The Product is manufactured by XXXXX.

2. The Product has been assigned XXXXX, which is described as a consumer retail pack weighing XXXXXg.

3. The Product consists of a box which contains XXXXX bars which are referred to as a muffin bar. Each bar weighs XXXXXg and the box of bars weighs XXXXXg.

4. The Product ingredients are: XXXXX.

Ruling Requested

You would like to know how the GST/HST applies to supplies of the Product.

Ruling Given

Based on the facts set out above, we rule that the supply of the Product is a zero-rated supply (taxable at 0%) pursuant to subsection 165(3) and section 1 of Part III of Schedule VI.

This ruling is subject to the qualifications in GST/HST Memorandum 1.4, Excise and GST/HST Rulings and Interpretations Service. We are bound by this ruling provided that none of the above issues are currently under audit, objection, or appeal, that no future changes to the ETA, regulations or our interpretative policy affect its validity, and all relevant facts and transactions have been fully disclosed.

Explanation

Generally, every recipient of a taxable supply made in Canada shall pay tax calculated at the rate of 5% on the value of the consideration for the supply (or 13% in the participating provinces of Nova Scotia, New Brunswick, and Newfoundland and Labrador) unless the supply is zero-rated. Zero-rated supplies are included in Schedule VI. The tax rate in respect of a zero-rated supply is 0%.

Under Part III of Schedule VI, certain supplies of basic groceries are zero-rated. Section 1 of Part III of Schedule VI zero-rates supplies of food or beverages for human consumption, including sweetening agents, seasonings and other ingredients mixed with or used in the preparation of such food or beverages, other than supplies included in paragraphs (a) to (r) of that section.

Paragraph 1(m) of Part III of Schedule VI excludes from zero-rating:

"Cakes, muffins, pies, pastries, tarts, cookies, doughnuts, brownies, croissants with sweetened filling or coating, or similar products where

(i) they are prepackaged for sale to consumers in quantities of less than six items each of which is a single servingi, or

(ii) they are not prepackaged for sale to consumers and are sold as single servings in quantities of less than six,

but not including bread products, such as bagels, English muffins, croissants or bread rolls, without sweetened filling or coating;"

It is our position that the bars are considered to be "similar products" for the purpose of paragraph 1(m) of Part III of Schedule VI.

Each bar is less than 230g and would be excluded from zero rating by paragraph 1(m) of Part III of Schedule VI when it is sold singly or in boxes containing less than six bars. However, the Product is a box containing 8 bars. As such, the Product will be zero-rated as it will not be excluded by paragraph 1(m) of Part III of Schedule VI by virtue of subparagraph 1(m)(i) of this paragraph.

As the Product is a food that is not included in any of paragraphs (a) to (r) of section 1 of Part III of Schedule VI, supplies of the Product are zero-rated under section 1 of the same Part and Schedule.

If you require clarification with respect to any of the issues discussed in this letter, please call me directly at 613-954-5124. Should you have additional questions on the interpretation and application of GST/HST, please contact a GST/HST Rulings officer at 1-800-959-8287.

Yours truly,

Nancy Jardine
Goods Unit
General Operations and Borders Issues Division
Excise and GST/HST Rulings Directorate

i For GST/HST purposes, a single serving of cake, pie, muffin, pastry, tart, cookie doughnut, brownie, croissant with a sweetened filling or coating or a similar product, is a serving weighing less than 230g.

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UNCLASSIFIED