27 March 2003 GST/HST Interpretation 44818 - Application of GST/HST to Dietary Supplements

Dear XXXXX:

On July 31, 2002 the Canada Customs and Revenue Agency issued GST/HST Policy Statement P-240 "Application of GST/HST to products commonly described as 'Dietary Supplements'". This policy confirms that Dietary Supplements in pill, capsule, tablet or other similar forms are not considered to be food and are therefore taxable at 7% GST or 15% HST, as applicable.

In addition, this policy clarifies that dietary supplements, such as protein, amino acids and fibre, in powdered form, are not considered to be food or beverages even when mixed with water, juice or milk as a way to facilitate ingestion. As a result, all powdered dietary supplements, flavoured or unflavoured, are taxable at 7% or 15% HST, as applicable.

Please note that this policy does not apply to products defined as a "meal replacement" or "nutritional supplement" in Section B.01.001 of the Regulations to the Food and Drug Act. These products are generally zero-rated.

The information provided above supersedes the information provided to you in our letter XXXXX concerning the application of GST/HST to XXXXX.

Enclosed you will find a copy of Policy Statement P-240.

Should you have any questions or require clarification on the above matter, or wish for our office to provide a ruling on a particular product, please do not hesitate to contact me at (613) 952-9218 or by writing to us at the above address.

Yours truly,

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