GST/HST Notices - Notice 338 “Information Requirements for Basic Grocery Ruling Requests”.
Section
1 of Part III of Schedule VI zero-rates the supply of basic groceries,
which includes the majority of supplies of food and beverages marketed for
human consumption. However, some food categories are taxable, such as
carbonated drinks, candy and confections, and snack foods. GST/HST
Memorandum 4-3 “Basic
Groceries” gives comprehensive details on basic grocery items with a zero
rating under the Excise Tax Act (ETA) provisions.
To
get clarity on a grocery product's tax status, a ruling from the Canada Revenue
Agency (CRA) may be requested. General details about the rulings and
interpretations services provided by the CRA with regard to the GST/HST are
provided in GST/HST Memorandum 1-4 “Excise
and GST/HST Rulings and Interpretations Service”. When determining the tax status of a grocery
product, the CRA will take into account the product's packaging, labeling,
advertising, invoicing, and display.
Manufacturers, distributors, importers, retailers, and consumers all submit requests to the CRA for GST/HST rulings pertaining to grocery products. Regardless of who makes a request regarding a specific product, the following information request standards guarantee that the requestor provides the information needed to accurately ascertain the tax status of a grocery product.
1.
Conditions for a request
for a grocery product ruling
The information and documentation requirements outlined in GST/HST Memorandum 1-4 “Excise and GST/HST Rulings and Interpretations Service” must be followed when requesting rulings on grocery products.
2.
A sample of the product is
given scenario
Whenever feasible, a product sample for each grocery product should be included with requests for rulings on the product. The complete product packaging, which includes the following details, should be included in the product sample.
· Package contents, including the total weight or volume of the contents, the number of product units inside the package, and, if relevant.
· Any marketing claims (such as the product's health benefits).
· Ingredients list.
· Any nutritional data, such as the product facts table, supplemented food facts table, nutrition facts table, or nutrition information.
It is not recommended by the CRA to provide product samples for perishable or cold-storage items.
3. No product sample was given scenario
In the event that supplying a product sample is not feasible or suitable, requestors must supply the following:
· Clear color photos showing the following details on every side of the product's packaging:
o package information, including the total weight or volume of the contents, the quantity of the units of the product inside the package, and, if relevant, any advertising claims on the ingredient list label
o When feasible, include color photos of the product on the inside and outside of an opened package along with any nutritional information (such as the nutrition facts table, supplemented food facts table, or product facts table).
The CRA will need the following in addition to the lists mentioned above:
· Information about how a product is positioned in store aisles for retail stores (e.g., what products are sold alongside the product in question)
· If possible, include a URL to the product and the section of the online store where the product is being sold.
Depending on the type of product, the CRA may ask for more information and / or documentation; the lists above are not all-inclusive. The CRA is not allowed to make a decision if a product is not labeled in either French or English.
4. Where can I write for a decision?
As of November 4, 2024, requests for decisions regarding grocery items, including those involving product samples, should be directed to:
GST/HST Rulings Directorate
Canada Revenue Agency
5th Floor
Tower A
Place de Ville
320 Queen Street
Ottawa ON K1A 0L5
No samples will be returned by the CRA. When samples are no longer needed, they will be discarded.
5. More details
A ruling request that includes clear and comprehensive product information will guarantee that the CRA takes into account all pertinent information about the request and will help with a prompt response. The CRA will notify the requestor of the necessary information if it does not receive all the information needed to make a decision.
6. CRA service standard for replying
According to GST/HST Memorandum 1-4, the CRA aims to reply to written requests for GST/HST rulings and interpretations (apart from extremely technical, precedent-setting, and/or policy-setting rulings and interpretations) within 45 business days of receiving the request, all pertinent facts, and supporting documentation, along with any extra information the CRA requests. CRA’s goal is to provide this level of service 80% of the time.
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